detik.com

Friday, January 18, 2013

Forex trading Process



In exchange forex (foreign exchange) one can buy or sell currencies are traded, the goal is to make a profit or gain from the position of transactions. In Stock exchange recognized term Lot and Pip. 1 Lot value is $ 1000 and 1 pip value is $ 10. While the value of the dollar in the foreign exchange market is different from the value of the dollar as we know it in banks. Value of the dollar in the foreign exchange market is very varied, 6000/8000 and 10,000 rupiah.

Two-way transaction

Transactions in foreign exchange can be done by way of two-way in taking advantage. One can buy the first (open), and closed with a sell (sell close) or otherwise, to sell first, and then closed with the purchase.

Foreign exchange market players

Unlike the stock market where the members have the same access to the stock price, foreign exchange market is divided into several levels of access. At the highest level of access is the inter-bank money market (interbank) consisting of investment banking firms besar.Pada interbank market, the difference between the bid / selling price (ask) prices and demand / purchase price (bid) is very thin so even normally does not exist, and this price only applies to their own ranks who do not know foreign players outside their group.

At the access level below, the range of difference between the selling price and the purchase price be large depending on the volume of transactions. If a trader can guarantee the execution of foreign exchange transactions in large numbers, they can request that the difference between the selling and purchase reduced-called better spread (thin difference between the buy and sell price). Level access to the foreign exchange market is largely determined by the size of the exchange transaction is done.

Top ranked banks dominate "the interbank money market (interbank)" up to 53% of the transaction value. And after the top-ranked banks are the next rank is a small investment banks and multinational corporations large (requiring hedge transaction risk and pay employees in different countries), hedge funds, and retail merchants and their speculators that determines the foreign exchange market.

1 comment: