Category Archive advantage of Forex

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What is Margin?

What is Margin?

Tutorial forex, forexfx, fx invest, investment, capital, trade, tradefx, trader, capitalforex, money, monetary, earn, exchange, foreign,Margin, MARGIN CALL

One of the most used terms in the Forex market, along with terms like leverage, lot, is the margin. Margin is a frequently asked question and is often confused. Margin, which means collateral, is used in the forex market together with different terms. While the amount used when opening a position is called the initial margin (initial margin), we can see how much more we can open the position by looking at the free margin (the free margin).

 

How does FOREX MARGIN LEVEL CALCULATE?

 

Margin calculation, in other words margin level, is one of the important points to be considered in the forex market. We find margin level by comparing asset / free margin. When this level reaches below 75%, the margin call-margin call comes in. When the level reaches below 50%, the system automatically closes our positions, starting with the most harmful position. It is not compulsory to provide margin when the margin call warnings are received in Forex markets.

 

WHAT IS FOREX MARGIN CALL? MARINE CALCULATION SAMPLES:

Tutorial forex, forexfx, fx invest, investment, capital, trade, tradefx, trader, capitalforex, money, monetary, earn, exchange, foreign,Margin, MARGIN CALLAs an example, let’s imagine that we have 5,000 USD in our account and we will do our work using 1/100 leverage. We decided to do 5 lot USDTRY long (long) trading. The initial guarantee for this transaction is 5,000 USD. If this is not the case then the free margin will be 0. If we open this position and we do not like the margins, it is 100%.

 

Now; If the USDTRY price moves in the opposite direction to the position we opened and the margin reaches 75 percent, we call margin completion, which is called margin call. This means that we should follow our position more closely, because if the margin is below 50% we will automatically close our position by the electronic trading platform MetaTrader4.

 

FOREX STOP OUT WHY? STOP OUT CALCULATIONS:

Tutorial forex, forexfx, fx invest, investment, capital, trade, tradefx, trader, capitalforex, money, monetary, earn, exchange, foreign,Margin, MARGIN CALL

Stop out concept in Forex markets; a situation in which a certain percentage of the collateral used remains. In other words, it can be explained as Asset / Used Collateral. To give an example; Suppose we open a position with a 1,000 USD balance and 1,000 start-ups. In this case, our Asset / Used Margin ratio will be 100%. QNB Finansinvest has a stop out level of 50%. In our example above, if our asset, which is $ 1,000, drops to 500 USD, Asset / Used Margin will be 50%, and our most damaged position will automatically stop.

 

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How is the Dollar invested?

How is the Dollar invested?

Dollar Investment Profitable, How to Invest in Dollar, Investing in Dollar, Investing in Dollar in Forex, Investing in Dollar in Free Market

Dollar Investment Profitable, How to Invest in Dollar, Investing in Dollar, Investing in Dollar in Forex, Investing in Dollar in Free Market

The US dollar, which is the most used currency in the world, is one of the most advantageous exchange rates for investors. Dollar For foreign investors, foreign exchange can be invested in different ways. At this point, the investor should first decide whether to invest in long term or short term. Long-term investments are like doing traditional trade. By anticipating the dollar’s movements in the long run by buying and selling dollars in the free market, the investor can convert the dollar increase in the long run. For those who want to make a short-term investment, the Forex market can be quite reasonable. In Forex, the investor can invest dollars by getting the dollar up or down during the day.

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Forex Basic Analysis

Forex Basic Analysis
FED (Federal Reserve)

The Federal Reserve is the central bank of the United States, which was founded on December 23, 1913. Over time, the roles and responsibilities of the Federal Reserve System have been expanded and changes have taken hold. Ben Bernanke, head of the central bank in Washington. The bank also has the authority to print and distribute US dollars.

The Federal Open Market Committee (FOMC)

forex, Forex Basic, Forex Basic Analysis, Forex Basic analytics, Forex Beginner, Forex Beginners, capitalforex netThe FOMC is the US Federal Reserve Open Market Operations Committee. It is the most important part of the Federal Reserve System’s monetary policies. The FOMC has important tasks such as increasing employment, keeping inflation and macroeconomic balance at an acceptable level, and taking measures to promote economic growth.

FED Meetings
The Federal Open Market Commitee meets eight times a year to assess economic trends and determine their monetary policy. FOMC Meetings (FOMC Minutes) are announced three weeks after the FED meetings. In the meeting records; The reasons behind the decisions of the FED meetings include the FOMC members’ view of the macroeconomic outlook, the duration of economic measures and interest rate decisions, and forecasts for future periods. Investors look for clues in this long text for changes that may occur in the FED’s monetary policies.

Interpretation of FOMC Decisions
Interest Rate Decisions: Commitments to keep FED’s policy rate at certain levels are affecting the course of the US dollar and commodities. For example; A clue to the prolongation of the rate at which interest rates are held at very low levels will create a low interest-weak dollar sense. Read More

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Advantages and Disadvantages of Forex Trading Trades

Advantages and Disadvantages of Forex Trading Trades

 

If you are considering trading in foreign currencies, the pros and cons of other trading forex have been arranged as follows:

 

 

  1. Forex markets are the largest in terms of volume traded in the world and therefore offer the most liquidity, making it easier to enter and exit a position in any of the major currencies for a second or less.

 

  1. As a result of the liquidity and convenience that a trader may enter into or derive from a trade, banks and / or intermediaries offer a great deal of leverage; This means that a trader can control his own big positions with relatively little money. A leverage of around 100: 1 is not uncommon. Of course, a trader should understand the risks of leveraging leverage and leveraging an account. Leverage should be used with caution and care if it will provide any benefit. An understanding or lack of wisdom in this regard can easily destroy a merchant account.

 

  1. Another advantage of Forex markets is trading 24 hours a day starting in Australia and ending in New York. The main centers are Sydney, Hong Kong, Singapore, Tokyo, Frankfurt, Paris, London and New York.

 

  1. Transaction currencies are a “macroeconomic” effort. A foreign exchange trader must be connected to each other in order to comprehend the great picture understanding of the economies of the various countries and the bases that guide foreign exchange values.

 

For some, it is easier to focus on economic activity to make trade decisions than to understand the nuances that exist in stocks and futures markets, which usually require economic activity, and often the closed environments. Questions about a company’s management skills, financial strengths, market opportunities, and industry specific information are not required for forex trading.