Category Archive Forex Capital

ByAdmin

What is Inflation?

What is Inflation?

 

Inflation is an increase in the prices of goods and services. However, prices of goods and services may increase or decrease over time. Inflation is not just an increase in the price of a particular good or service, but a steady increase in the overall level of prices.

In other words, it is not inflation that only the prices of some commodities increase continuously or the prices of all commodities increase one time.

For example, the monthly inflation rate is 1 percent, which means that the general level of prices in that month increased by 1 percent compared to the previous month. The fact that the annual inflation rate is 30 percent means that the prices have increased by 30 percent on average compared to the previous year, for example, a commodity basket purchased for 200 TL last year could only be taken up to 260 TL this year.

 

Decrease in inflation; The decrease in prices, the increase in people’s purchasing power, and the increase in income. Declining inflation means less price increases, less purchasing power of people, and stability and prosperity.

 

 

Inflation rates are also very influential on exchange rates, as they can directly affect the steps taken by central banks in monetary policy. Because the inflation rate is the leading indicators for the changes in interest rates of central banks.
For example,
in the event that the inflation rates deviate upward from the targets of the central banks, the interest rate increase expectation is in the foreground, whereas if the inflation rate is below the targets of the central banks, the interest rate decrease expectancy is foreground.

ByAdmin

What is a Micro Lot?

What is a Micro Lot?

Increasing trading volume in Forex markets plays an important role in the processing of more players in forex markets by attracting interest to professionals and / or institutional investors as well as to those with different expertise and / or lower guarantees. Leveraging trades on forex markets leads investors with low collateral to get higher profit / loss due to leverage.

 

While trading in Forex market positions, such as BUY (BUYING) or SELL (SELLING) trading in USDTRY, the Meta Trader 4 trading platform, QNB Finansinvest trading platform, which uses more than 90% of all FX institutions worldwide, The position can be opened in various sizes starting from the volume. If the number of digits, called digits, is two, and the last digit is different from zero (0,01), this is called a micro lot. Thanks to the micro lot application, it is also possible to open position sizes of 0.02 / 0.13 / 1.27.

 If the transaction volumes are written as 0,10 / 0,20 / 1,50 / 2,70, ie the last digit (second digit after the conviction) always remains zero then the mini lot application is meant here. This means that the minimum lot size that forex traders can use is not a micro lot but a mini lot.

 

Micro Lot Size; 0.01 Lot = 1,000 br. In other words, if the position is to be bought in USDTRY, a position is opened with a base exchange rate of US $ 1,000 in the initial currency. If the size of the position taken is, for example, 1.56 lots, then the position is set at $ 156,000.

ByAdmin

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.

ByAdmin

How to Approach Forex Markets.

How to Approach Forex Markets.

 

 We can explain it in two ways.

For most investors or traders who have experience with the stock exchange, an attitude has been put in place to change currencies or add money as another opportunity to switch to diversification.

 

 

  1. Money trading was introduced as an “opportunity for an active trader”. These brokers are good because they are making more money when the merchant is more active.

 

  1. Foreign exchange trading is also promoted as leveraged trading, and it is therefore easier for a trader to open a small amount of account for the stock market trading.

 

In addition to trading a profit or a return, foreign exchange trading can be used to hedge a stock portfolio. For example, if you set up a portfolio of shares in a country with a potential to raise the value of a share, but a risk of insolvency in currency, such as in the recent US, then a trader may own the share. Create a portfolio and shorten the Swiss franc or euro To sell futures. In this way, the portfolio value will increase and the negative impact of the falling dollar will be significant. This is true for investors outside the United States who take their earnings back to their own currency.

 

If this profile is kept in mind, opening a forex account and daily trading or swing trading is the most common. Investors can try to make extra money by using the methods and approaches described in this site on the lot of articles found elsewhere and on the web sites of brokers or banks.

 

A second approach to transaction currencies is to understand baselines and long-term benefits when a currency advances in a particular direction and provides a positive interest rate differential that provides a value in the currency value of the return of the investment. This type of trade is known as “transport trade”.

 

For example, a trader can take the Australian Dollar against the Japanese Yen. When the original of this article is published, the Japanese interest rate is 0.05%, the most recently reported Australian interest rate is 4.75%, so a trader can earn 4% in this trade.

Nevertheless, such a positive interest should be seen in the real exchange rate context of the AUD / JPY before the decision of interest is given. If the Australian dollar is strengthening against the yen, it would be appropriate to hold the AUD / JPY to gain both the appreciation of the currency and the yield of interest.

ByAdmin

What is swap? What are the differences between swapped and non swapped account types?

What is swap? What are the differences between swapped and non swapped account types?  -1

What is a swap?

The exchange means ‘exchange, exchange, change’ as the meaning of the word. In the world of investment, bilateral is defined as a settlement agreement in which they exchange different interest payments or exchange rates mutually depending on one or the obligation within a certain period of time.

 

A swap transaction in the foreign exchange market is the purchase or sale of a certain transaction in a single transaction performed at the same time, subject to different transactions. For example; Let us consider a person who wants to benefit from high interest rates. A banker who operates in foreign exchange market in this order receives foreign exchange with the primary national currency funds. These currencies are then sold again to the same bank after three months of delivery. Thus a point is the market operation. It becomes unified. The type of swap used here is interest swap.

 

Three swap types are available. Let’s order them;

 

Interest Swaps:

– Fixed Interest-Variable Interest Swap

– Variable Interest-Variable Interest Swap

– swaps that give the son the right to give

– swaps giving the right to determine the interest rate later

 

Money (Currency) Swap

– Fixed Interest-Variable Interest Swap

– Variable Interest-Variable Interest Swap

 

Other Swap Types

– Money Option Swaps

– Transitional Tactics

– United Swap Swaps

– Dual Currency Swaps

 

We also want to briefly ask what the swap is worth. After you answer this question, you may have little or no information about what swap or swapless accounts do.

 

What Makes It Work?

 

Credit arbitrage. They can reduce the costs of funds.

Active and passive management place in enterprises.

The new borrowing cost is the basis for access to new resources.

Access to different markets.

It offers contracts differently.

It can have effects that reduce or eliminate risks.

Will be able to protect trade secrets.

 

ByAdmin

How can investors track their transactions?

How can investors track their transactions?

Forex trades investors’ spot values ​​as the currencies of one another see it. Most companies that are authorized to trade on the Forex marketplace or companies offer similar aids for investors to continue offering these services. When traders trade in the Forex market, they may trade currency pairs.

 

These various options are different places with investors. Most of these facilities can be gathered in one place and intermediary institutions are able to make transactions on the Forex market more easily to easily divert them to investors.

 

On the forex market, the transaction is able to overpay in more than 5 workplaces. With this feature, the Forex market is accepted as the market for the most popular currency options in the world. For investors, investing, investing, customer interaction must choose a good and reliable medium. Such an instrument can then trade on the currency pairs that the investors would like, and at the same time follow up on a momentary basis.

 

Investors can follow transactions with the people they choose to trade with and through the communication facilities provided by the trading platform they use. For swapters, instant tracking features are very important for investors.

 

This feature can avoid damage by withdrawing to invest in their own account in order to obtain the money they operate in an account. This coincidentally, choosing a platform by chance, is very important in this respect.

ByAdmin

How to earn money with Forex

How to earn money with Forex?

Remember, in order to fully understand trends, you need to be generally educated about currency trading and market routes.
Newcomers should not connect everything to the foreign exchange trading market trend-watches. Once you gain experience, you will begin to follow more and continue to grow with this experience. In addition, be aware that Forex market may be affected by other things. These effects can change the trend people expect. I mean, you have to be mature enough to keep track of trends and figures all by yourself. Train yourself about these terms and know them on the real market. After all, learning and practicing are really different things. When you enter the world of forex trading, you will immediately understand the importance of using technical analysis to understand the moment when you first look at forex charts in order to find trends and benefit from the very beginning to the very end. The foreign exchange market is a very popular market, there may be many increases and decreases in very short time, so technical analysis can be very effective. However, you must always keep an edge of your mind that these signs can only give you a high likelihood of giving the market a boost while you are shopping, but you can not make sure the behavior of foreign exchange prices is absolutely sure. If you want to be a profitable forex trader and want to make the best predictions about trends, you should use as many technical indicators as you can, or create a personalized shopping strategy based on these indicators.