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What is a Parity? How is a Parity Calculated?
What is a Parity? How is a Parity Calculated?
In its simplest terms, the parity refers to the ratio of country currencies. The interest rates of the country currencies and the economic conditions they are in can be counted as factors affecting the parities. For example, in terms of Turkey’s foreign trade balance, EURUSD (Euro Dollar parity) is a big part because of the fact that most of the exports are in Euros and most of the imports are in US dollars.
HOW CAN THE PARITY BE CALCULATED?
Euro: 3 TL Dollars: 2 TL and Euro Dollars 3/2 = 1.5. In this case, the Dollar will be 2/3 = 0.66.
An investor who bought EURUSD (long position) will have sold USD in exchange for the EUR bought; sale (Short Position) will make it sell Euro and receive US Dollars.
EURUSD parity (Euro / US Dollar), USDJPY (American Dollar / Yen), GBPUSD parity (Sterling / US Dollar) and AUDUSD (Australian Dollar / US Dollar) are among the top paratels that are traded on Forex markets. In addition to these, the USDTRY parity (US Dollar / Turkish Lira) and EURTRY (Euro / Turkish Lira) are also included in Turkey.
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What is the MACD Indicator?
What is the MACD Indicator?
The MACD indicator is a trend indicator and a momentum indicator that shows the relationship between prices for two different moving averages. Basically, the 26-day exponential moving average is obtained by removing the 12-day exponential moving average. The MACD indicator uses an in-line signal line and is used as a trigger for sales signals. The MACD demonstration was developed by Gerald Appel in the 1970s.
How is the MACD INDICATOR INTERPRETED?
The use of 3 of the MACD indicators is an important and widely used interpretation method.
Intersections: When the MACD indicator falls below the signal line, a signal may indicate that a signal has arrived or that the sales clock has arrived. If the MACD indicator rises above the signal line, this upward signal is generated and the appearance of reception levels is marked. Many investors are waiting for the intersection level to be able to avoid false signals.
Disaggregation: If the price of a financial product differs from the MACD indicator, this current trend is over.
Abnormal Aspects: If the MACD indicator rises abnormally, it is displayed that this short-term moving average pushes up the average to the length. This indicates that the related financial product is in an overbought territory and will shortly return to normalcy. For investors also to underline the bottom border and lines. While the MACD indicator is above the zero line, it is on the short-term long-term average and indicates that upward movement may continue. The bottom of the zero line is the exact opposite of this.
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What is Leverage?
What is Leverage?
The volatility, which began at the beginning of the 1970s with the end of the Bretton Woods agreement, allowed swap-like derivatives to pass over. With the contribution of technology that develops day by day, besides banks and similar financial institutions, individual investors have the opportunity to trade easily with very narrow spread ratios in leverage derivative markets when it comes day by day. Starting in 2012, the forex markets in Turkey, which have developed especially in the last 10 years, started to be monitored by financial institutions providing the opportunity to trade in forex markets under CMB regulation, and interest of big and small investors who want to take advantage of the opportunity of higher volume transactions by leverage ratio started to increase.
LEADER FOR FOREX
Let’s go over an example to clarify the concept of “leverage” that is often used in Forex markets and seen as a risk factor
by investors. Suppose that Mr. Collin, who opened a forex account at Finance online FX with a leverage ratio of 1/100, deposited $1,000 as his initial deposit. The maximum position size that Mr. Collin can open with this guarantee is 100.000 USD (1.000 x 100). The maximum position size should be underlined here. Because of the trader’s trading platform,
the nominal size of the position opened on the order screen can also be seen, as is the value in lots. If Mr. Collin is trading in the USD / TRY range on MetaTrader4 platform, one of the most frequently used trading platforms for forex markets, he will open the 1 lot position by selecting the field “1” in the order screen. The nominal size of the position it opens is also 100,000 USD. Now, Mr. Collin’s account of 1,000 USD increases or decreases to include the profit or loss of a USD 100,000 position in the USDTRY price per pips rise / fall.
RIDDLE OPERATIONS RISK? FOREX TRANSACTIONS RISK?
Forex markets have high leverage ratios from time to time investors “hurry to forex risk a lot? “May be bringing the question to mind. However, leverage ratio and risk concepts may not be directly proportional to each other. To explain with an example; Mr. Sam opened a forex account with a leverage ratio of 1/1 to open an initial bond of 100,000 USD and wants to open a USD 100,000 position in USD / TRY.
To do so, he has to use the entire initial deposit to open up one lot (100,000 USD) position on the MetaTrader4 platform and there is no free back guarantee. However, if Mr. Sam had opened the forex account by choosing the leverage ratio of 1/100, then in order to open another 1 lot (100.000 USD) position, one thousand USD (100.000 / 100) bond will be left out of the initial 100.000 USD and the remaining 99.000 USD free guarantee , that is, security.
One of the well-known mistakes about leverage is high leverage = high loss. Actually, that’s not really the case. If we continue with the above example, the profit / loss of 1 lot position would be the same as if we had 1/1 leverage and 1/100 leverage with 1 lot position profit / loss received by Mr. Sam who opened forex account with leverage. The leverage does not affect the profit / loss to be less or greater, but only determines whether the initial margin is more or less.
LIMITATIVE PROCESSING SAMPLES
As we can see from our examples, we can open a high volume position with low leverage. The risk here is that investors should use high leverage to open up more positions. That is, if Mr. Sam continues to open positions with high lot ratios by saying that he has left 99,000 USD behind the 1 lot process that he has opened using 1/100 leverage, then the leverage ratio may start to pose a risk for investors. However, if Mr. Sam continues to take action in the direction of the strategies he has created and take his risk appetite without taking another position or open a limited position, he may wait for USD / TRY to keep his position for a long period of time, even if he anticipates moving. Forex markets and leverage opportunities can be a risk factor because the amount of money earned is directly proportional to the risk involved. However, adjusting this risk level is entirely at the discretion of the investor.
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What is Dual Dip and Double Tepe Formation?
What is Dual Dip and Double Type Formation?
DOUBLE TYPE – DOUBLE TYPE FORMATION
The formation, which is called double hill or double hill, is assumed to be the news of technical analysts coming to the end of a strong upward trend. With the return from a significant peak level, investors who have not been able to participate in the movement will rise again and the market will go up to a level close to the previous level, but the hard selling experienced in the previous hill also becomes an important resistance, this reluctance to withdraw the prices back to the level of support occurs.
DOUBLE DIP – DOUBLE DIP FORMATION
This formation is the opposite of the double top formation. The amount of volume in this formation, seen at the end of the downtrend, is high when the first dip is formed. In response to the first dip, the volume remains lower. From the second dip, the transaction volume increases with the price. In these formation graphs, the binary top formation resembles the letter W, which is the inverse of the letter M, which is the shape of the figure. Just as it is in a double hill formation, this formation is usually assumed to be longer than one moon.
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WHAT DOES THE DEVELOPMENT SAMPLES HAVE?
WHAT DOES THE DEVELOPMENT SAMPLES HAVE?
For example; Egypt had serious pressure on the exchange rate due to the fall of the US dollar to the black market. The rise of the black stock market had serious consequences for Egypt’s domestic production and investments. For this reason, Egypt devalued its currency by 14% against the US dollar in March 2016.
After the devaluation, the Egyptian stock market showed very serious rises, but against it the black market forced the Egyptian central bank to take more precautions. On June 12, 2016, the Egyptian bank once again devalued the value of the Egyptian Pound against the US dollar.
Another example of devaluation is China. China, which is experiencing serious problems with the credit market and economic contraction in 2015, has devastated Reminbi, the local currency. China, repeating this devaluation movement several times over the course of the year, warned China that it intervened with the US on monetary policy instruments on global trade. By devaluing the countries’ currencies, trying to gain advantage in global trade and being advantageous in exports is seen as the main cause of currency wars.
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What is the bull market?
What is the bull market?
Bear and bull market concepts, which are frequently encountered in financial markets, provide information about the direction of the market (trendi). The bullish market is the period when the market is on the uptrend, that is, prices will stay in an optimistic environment in the future and investors will be able to buy it. It is assumed that the origin of this term comes from the belief that the bulls have lifted everything up and down with their horns. It is possible to encounter in the forex market with comments such as stock market and gold as the beginning of the “bull market” we have come across in the commodity. On the bear market, the situation is exactly the opposite of the bull market. In other words, the market is in a downward trend and the market is pessimistic. For the start of the bull market, technically it is expected that it will have risen by 20% from the lowest level of the relevant market.
THOUSANDS OF BULK MARKET
Stage 1: Staging is the phase in which very cheap commodities sold by investors who are in trouble and discouraged are being collected by large investors. Yet there is no significant upward trend and there is still little interest in the market in general.
2nd Stage-Buying Wave: It is the phase in which the signs of recovery in the market have begun to be clearly noticed after the addition phase, and small investors are now included in the buying wave.
Stage-Saturation: The market has reached a certain degree of saturation with the increase in volume, and the buyer has decreased considerably in the market. It indicates that the bull market has come to an end, so it can be expected to start a wave of steep declines.
BULK MARKET EXAMPLES
Gold has been in a significant bull market since the early 2000s. Gold prices have risen from $ 800 ounce levels to $ 1900 ounce levels. This is the case for a strong golden bull market.
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What is Forex Methods
What is Forex Methods
1. How are news and appreciation detected?
The most important factor determining the direction of a parity is the news about the currency concerned and the perceptions of the Market Players about that parity.
The issue is that if the USD raises the interest rate on the EUR / USD parity, the USD-oriented transaction can be opened without any technical analysis required.
News and economic data can be traced from various Forex sites.
In addition to this, Market Players may decide that if a parity is going to go up, the Buy operation can be started regardless of the technique. Perceptions of parities can be controlled with data called Sentiment.
2. HOW SUPPORT AND RESISTANCE IS DETERMINED?
Perhaps the most important technical issue in Forex is the determination of support and resistance points.
Resistance of a previous support when drawing Support-Resistance should not be taken for granted that a previous resistance might support.
After setting the graph to detect DDs, at least 2 points that are paused at the same level are determined and a horizontal line is drawn. The price is more likely to pause and change direction at this level.
Note the support and resistance in the picture. The price is having difficulty passing through that region.
3. HOW TO DRAW THE TREND LINE?
Trend lines also affect parities like the same support resistance. Trend lines generally work with 3’s. This is called the sister technique.
When plotting the trend line, the previous 2 dips or crests are determined. The price is expected to return from these lines.
If the trend line is exceeded, resistance can be turned into support.
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What is Commodity
What is Commodity?
Commodity means, as a word, the name given to all commodities and products that are subject to trade.
Support You can also trade commodities such as oil, gold, silver, wheat, corn, soya bean, cotton, coffee, sugar in investment securities. There are many different dynamics that determine the prices of commodities. For example, when trading under, the factors that affect the price of gold need to be well known. Gold has been a safe port for centuries. The wars in the world have an effect of increasing the demand under conditions such as high inflation. Elements that affect corn prices when trading in another commodity such as Egypt may differ from those that affect the price of gold. The low level of corn yields in a globally drought year may cause corn prices to rise.
In petroleum, supply-side downturns create upward pressure on oil prices, causing oil prices to rise. Or the economic crises that may be experienced in countries like China and USA, which are the biggest oil consumers of the world, will push down oil demand and create downward pressure on oil prices. The slowdown in China, the second largest economy in the world, causes copper prices to depreciate rapidly. The factors affecting the commodities being processed may differ in such a way.
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What is CMB License? The Importance of Transactions with Brokerage Institutions which are CMB Documents
What is CMB License? The Importance of Transactions with Brokerage Institutions which are CMB Documents
The Capital Markets Board is a supervisory body that exercises its authority established under the Capital Markets Law independently under its own responsibility.
Capital Markets Board; Has introduced new regulations to regulate and audit the forex market. The reason for the need for such arrangements; The fact that most of the institutions that provide services for investing have their headquarters abroad and that the necessary controls can be made. The investors have lost money in large quantities after the transactions they have opened due to insufficient examination in this market.
What is the CMB license?
The brokerage houses that want to appeal to the forex investor in this arrangement need to obtain the CMB document. The way to obtain the CMB license also requires compliance with the rules and regulations approved by the CMB. The leverage ratio has been fixed in the counter trades.
Companies that are not included in the regulation and are not licensed by the CMB are attracted to their attention with the high rate of unemployment they provide to the investors, but even if the investors gain profits, the money obtained from the forex brokerage institutions which are not subject to legal regulations can be restored They may have problems getting it.
Foreign exchange transactions require a great deal of knowledge and experience because there are many factors that affect the value of currencies. Because the transactions are carried out on platforms, the problems that may arise in the circumstances where the brokerage houses are not subject to statutory audits can prevent them from reaching the investors’ capitals.
Leveraged trading transactions (forex transactions) can only be performed by organizations authorized by the Capital Markets Board (CMB) and certified by CMB. Thus, if the investor who deals with a forex brokerage firm approved by the CMB is a victim, he may apply to the CMB.
In addition, the forex brokerage house, which owns the CMB document under this arrangement, is subject to having a certain capital power and information processing infrastructure. This makes forex companies more reliable in terms of forex investors. The Board is also able to protect investors of their own country against the risky Forex market by introducing restrictions on leverage rates that brokerage houses can offer and the ads they can publish.
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Forex Trading for Beginners
Forex Trading for Beginners
“Forex” is derived from the definition of foreign exchange (foreign currency) and is one of the names of the international currency market.
Forex Beginners
Forex is one of the largest financial markets in the world, trading at a volume of 4 trillion USD every day. This high daily volume is even more than the total combined daily volume of the world’s leading stock exchanges.
This transaction creates a very liquid market where trading is convenient.
Being a Forex trader offers the most amazing potential lifestyle of any profession in the world. It’s not easy to get there, but if you are determined and disciplined, you can make it happen. Here’s a quick list of skills you will need to reach your goals in the Forex market:
Ability – to take a loss without becoming emotional
Confidence – to believe in yourself and your trading strategy, and to have no fear
Dedication – to becoming the best Forex trader you can be
Discipline – to remain calm and unemotional in a realm of constant temptation (the market)
Flexibility – to trade changing market conditions successfully
Focus – to stay concentrated on your trading plan and to not stray off course
Logic – to look at the market from an objective and straight forward perspective
Organization – to forge and reinforce positive trading habits
Patience – to wait for only the highest-probability trading strategies according to your plan
Realism – to not think you are going to get rich quick and understand the reality of the market and trading
Savvy – to take advantage of your trading edge when it arises and be aware of what is happening in the market at all times
Self-control – to not over-trade and over-leverage your trading account