Saturday, June 26, 2010

Margin

http://bestforexsites.com/wp-content/uploads/2009/08/forex-margin.png


Banks and/or online trading providers need collateral to ensure that
theinvestor can pay in the event of a loss. The collateral is called the
“margin” and is also known as minimum security in Forex markets.
In practice, it is adeposit to the trader's account that is intended to
cover any currency tradinglosses in the future.Margin enables
private investors to trade in markets that have high minimumunits 
of trading, by allowing traders to hold a much larger position
 than theiraccount value. Margin trading also enhances the rate of
profit, but  similarlyenhances the rate of loss, beyond that taken
without leveraging.



Maintenance Margin

Most trading platforms require a “maintenance margin”
be deposited by thetrader parallel to the margins deposited
for actual trades. The main reasonfor this is to ensure
the necessary amount is available in the event of a “gap”
or “slippage” in rates. Maintenance margins are also used to
coveradministrative costs.When a trader sets a Stop-Loss rate,
most market makers cannot guaranteethat the stop-loss will actually
be used. For example, if the market for aparticular counter currency
had a vertical fall from 1.1850 to 1.1900 betweenthe close and

opening of the market, and the trader had a stop-loss of 1.1875
,at which rate would the deal be closed? No matter how the rate
slippage isaccounted for, the trader would probably be required
to add-up on his initialmargin to finalize the automatically closed
transaction. The funds from themaintenance margin might be used for this purpose. 

Friday, June 18, 2010

Spreads


http://static.howstuffworks.com/gif/exchange-rate-exchange.gif


 It is the difference between BUY and SELL, or BID and ASK.
 In other words, this is the difference between the market maker's
"selling" price (to its clients) and the price the market maker
"buys" it from its clients. If an investor buys a currency and
immediately sells it (and thus there is no change in the rate of
exchange), the investor will lose money. The reason for this is
 “the spread”.  At any given moment, the amount that will be
received in the counter currency when selling a unit of base
currency will be lower than the amount of counter currency which
 is required to purchase a unit of base currency.  For instance,
 the EUR/USD bid/ask currency rates at your bank may be
 1.2015/1.3015, representing a spread of 1,000 pips
 (percentage in points; one pip = 0.0001).  Such a rate is much
higher than the bid/ask currency rates that online Forex investors
 commonly encounter, such as 1.2015/1.2020, with a spread of 5 pips.
 In general, smaller spreads are better for Forex investors since
 they require a smaller movement in exchange rates in order to
profit from a trade.

Prices, Quotes and Indications

The price of a currency (in terms of the counter currency), is called “Quote”.
 There are two kinds of quotes in the Forex market: Direct Quote:
 the price for 1 US dollar in terms of the other currency, e.g. –
 Japanese Yen, Canadian dollar, etc. Indirect Quote: the price of
 1 unit of a currency in terms of US dollars, e.g. – British pound,
 euro. The market maker provides the investor with a quote.
  The quote is the price the market maker will honor when the deal
 is executed.  This is unlike an “indication” by the market maker,
 which informs the trader about the market price level, but is not
 the final rate for a deal. Cross rates – any quote which is not
 against the US dollar is called “cross”. For example, GBP/JPY is
a cross rate, since it is calculated via the US dollar. Here is how
 the GBP/JPY rate is calculated:

 GBP/USD = 1.7464;
USD/JPY = 112.29;
Therefore:  GBP/JPY = 112.29 x 1.7464 = 196.10













Exchange rate

http://www.translationdirectory.com/images_articles/Exchange_rate_03.gif

Because currencies are traded in pairs and exchanged one against
  the other when traded, the rate at which they are exchanged is
 called the exchange rate. The majority of currencies are traded
against the US dollar (USD), which is traded more than any other
 currency. The four currencies traded most frequently after
 the US dollar are the euro (EUR), the Japanese yen (JPY),
the British pound sterling (GBP) and the Swiss franc (CHF). These
 five currencies make up the majority of the market and are called
 the major currencies or “the Majors”. Some sources also include
 the Australian dollar (AUD) within the group of major currencies.
 The first currency in the exchange pair is referred to as the base
 currency. The second currency is the counter currency or quote
currency. The counter or quote currency is thus the numerator
 in the ratio, and the base currency is the denominator.
 The exchange rate tells a buyer how much of the counter or quote
currency must be paid to obtain one unit of the base currency.
The exchange rate also tells a seller how much is received in
 the counter or quote currency when selling one unit of the base
currency. For example, an exchange rate for EUR/USD of 1.2083
specifies to the buyer of euros that 1.2083 USD must be paid to
obtain 1 euro












Tuesday, June 15, 2010

What Between Trading and Gambling ?

can forex trading be considered as gambling?
i had witnessed many arguments between people, on the web and outside it, surrounding this question.
some folks claim that trading forex is just like gambling in a Casino, you take your bet, and if you are lucky enough – you win .
To people who really understand how financial markets work, this is total rubbish.
Of course, you can , if you want,  gamble with currencies, just like you can gamble with anything else in life- like the final score of a  football game , the weather tomorrow, or how late will your train be this morning.
that does’t mean any of these things have anything to do with gambling directly.
the same goes for trading forex.
when a trader enters a trade, he does not do so because he is feeling lucky today, but rather because he had analyzed market conditions , used his trading system signals , or any other mean that gave him the opportunity to make an educated decision about where the market is going! a trader  has some tool that can give him an edge over the market, and if it is a good tool, and he follows it correctly, he’s profit potential is boundless.
in a casino however , the house has the edge over the gambler. anyone playing enough time in a casino will statistically lose – we call this ” the law of big numbers”. throw a coin 10 times, you might get 9 times heads and only 1 time tails, but throw a coin 1000 times, and i am pretty sure you will get very close to 500 heads vs 500 times tails.  play 1000 rounds on the roulette , and you will loss your money to the casino!
all i am saying is: if you have an edge – if you learn how to use  information and translate it into a trading decision – than you are a trader, and the risk you take in your trades is purely a business risk – not a gambler’s bet !
GreenBull,

William Percentage Range

Percent Range (%R) is a dynamic indicator, will determines overbought or oversold condition of the forex . Williams' Percent Range is and Stochastic Oscillator are very same. The only difference is that the first one has an upside down scale and the Stochastic Oscillator has internal smoothing. Indicator values ranging between 80 and 100% show that the market is oversold. Indicator values ranging between 0 and 20% show that the market is overbought. When the indicator is in the upside down scale, its values usually are assigned a minus symbol (for example -30%). During analysis one may ignore the minus symbol. All overbought/oversold indicators obey one rule: act according to the signal when prices turn happens. For example, if an overbought/oversold indicator shows an overbought condition, it is better to wait until the prices turn down before executing a sell deal. Williams Percent Range indicator can foreseen prices reversals. The indicator almost always forms a peak and turns

Tuesday, June 8, 2010

Memasuki Market US pair EURSD Down


Gambar 1


Gambar 2


Gambar 3

Memasuki Market US, mata uang eropa ini  down lagi, support berada di area 1.1910-1.1901 jika terlewati maka dipastikan target EURUSD   down ke area sekitar 1.1840-1.1830, Gambar 1 saya sell EURUSD Hits +19pips, Gambar 2 swing buy Hits +9pips, Gambar 3 Sell +11pip....

Monday, June 7, 2010

SELL EURUSD Hits +23pips

Gambar 1


Gambar 2

Katanya The Fed sepakat menjaga EURO, tapi kok masih down ya....apa belum kali up nya di sesi Eropa ini, tapi apa aja deh ya, ada signal ya OP....pendek-pendek aja yang penting dapat pips

Pressure Wave SELL Still Strong for EURUSD

Gambar 1


Gambar 2

Gelombang tekanan Sell EURUSD  masih tetap kuat ,pair EURUSD tadi sempat UP karena indeks US sempat turun, tapi seller tetap tidak memberi peluang kepada pair ini untuk UP lebih jauh lagi, pada awalnya saya sempat berpikir untuk  melakukan BUY, tapi analisa saya masih mengatakan bahwa EURUSD masih akan down...Gambar 1 : Hits + 24pips ,Gambar 2 : +10pips....Hidup Seller..he..he..


Sunday, June 6, 2010

Fundamental News

Fundamental News tidak bisa kitya hindari dalam sehari-hari kita melakukan trading forex, karena hal ini sangat berpengaruh

Saturday, June 5, 2010

Euro 'will be dead in five years'





22:41, Saturday 5 June 2010
The euro will have broken up before the end of this Parliamentary term, according to the bulk of economists taking part in a wide-ranging economic survey for The Sunday Telegraph .
The single currency is in its death throes and may not survive in its current membership for a week, let alone the next five years, according to a selection of responses to the survey the first major wide-ranging litmus test of economic opinion in the City since the election. The findings underline suspicions that the new Chancellor, George Osborne, will have to firefight a full-blown crisis in Britain's biggest trading partner in his first years in office.
Of the 25 leading City economists who took part in the Telegraph survey, 12 predicted that the euro would not survive in its current form this Parliamentary term, compared with eight who suspected it would. Five declared themselves undecided. The finding is only one of a number of remarkable conclusions, including that:
The economy will grow by well over a percentage point less next year than the Budget predicted in March.
The Government will borrow almost £10bn less next year than the Treasury previously forecast, despite this weaker growth.
Just as many economists think the Bank of England will not raise rates until 2012 or later as think it will lift borrowing costs this year.
But the conclusion on the euro is perhaps the most remarkable finding. A year ago or less, few within the City would have confidently predicted the currency's demise. But the travails of Greece, Spain and Portugal in recent weeks, plus German Chancellor Angela Merkel's acknowledgement that the currency is facing an "existential crisis", have radically shifted opinion.
Two of the eight experts who predicted that the currency would survive said it would do so only at the cost of seeing at least one of its members default on its sovereign debt. Andrew Lilico, chief economist at think tank Policy Exchange, said there was "nearly zero chance" of the euro surviving with its current membership, adding: "Greece will certainly default on its debts, and it is an open question whether Greece will experience some form of revolution or coup I'd put the likelihood of that over the next five years as around one in four."
Douglas McWilliams of the Centre for Economics and Business Research said the single currency "may not even survive the next week", while David Blanchflower, professor at Dartmouth College and former Bank of England policymaker, added: "The political implications [of euro disintegration] are likely to be far-reaching Germans are opposed to paying for others and may well quit."
Four of the economists said that despite the wider suspicion that Greece or some of the weaker economies may be forced out of the currency, the most likely country to leave would be Germany.
Peter Warburton of consultancy Economic Perspectives said: "Possibly Germany will leave. Possibly other central and eastern European countries plus Denmark will have joined. Possibly, there will be a multi-tier membership of the EU and a mechanism for entering and leaving the single currency. I think the project will survive, but not in its current form."
Tim Congdon of International Monetary Research said: "The eurozone will lose three or four members e_SEnDGreece, Portugal, maybe Ireland e_SEnD and could break up altogether because of the growing friction between France and Germany."
The recent worries about the euro's fate followed the creation last month of a $1 trillion (£691bn) bail-out fund to prevent future collapses. Although the fund boosted confidence initially, investors abandoned the euro after politicians showed reluctance to support it wholeheartedly.

Friday, June 4, 2010

EURUSD Strong down jam 18.00 GMT+7 sebelum NFP di release

Pair EURSD meneruskan keterpurukkannya lagi sore hari ini semenjak kemarin dimenangkan oleh Seller lagi, ngga tau nih sebelum OP ada news release sepertinya, ngga liat sih saya tadi pas Entry sell...he..he..Hits +21pips..Follow Short tren aja..Scalpers sih..

Thursday, June 3, 2010

Seller menang lagi

SELL EURUSD Hits +27pips, pair EURUSD terlihat sedang  berusaha memenuhi range hariannya,  closing hari ini di titik Low 1.2152 melebihi range hariannya yang berjumlah 169 poin, .
Hari ini para SELLER sepertinya menang lagi , tapi Market US masih berjalan, siapa tau closing nanti melebihi high tadi...he..he.....

Scalp EURUSD


Scalping EURUSD 1

Scalping EURUSD 2

Scalping EURUSD 3

Tuesday, June 1, 2010

EURUSD flying into the sky after falling

Judul posting diatas sepertinya hanya berlaku tren short term aja kali ya..tapi siapa tau saja terjadi EU tiba bisa mencapai 1500-an lg, siap tau ya...how knows?memang susah memprediksi forex secara tepat...walaupun dalam 20 detik ke depan.Saat ini EURO atau mata uang negara-negara gabungan Eropa makin terpuruk saja,setelah Down ekstrem tadi  saat ini  mulai up..sepertinya cuma retrace aja  Low baru sudah muncul lagi, EURUSD mencapai titik terendahnya 1.211 sejak bulan Juni 2006...chart udah merah sekali seperti banyak cabenya..pedes mata, down terus sih ya...he..he... dan ketika EURSD mulai menunjukkan signal up ,saya langsung OP Buy untuk mengambil momentum ini..Alhamdullilah 25pips tercapai

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