metrodenvergreens.org– What’s Forex Trading, Plus-Minus and How it Works. Speaking about the investment, of course a lot of instruments that can be selected, one of which is forex trading.
Talk about forex trading, this instrument is quite risky but the benefits are also great.
Refuse to forget, so risky it is even celebrities Kevin Aprilio never experienced a big loss to be owed amounted to Rp17 billion.
But you need to know if the investment is not much of a risk.
In fact, you have to put suspicion if there are investments that claim if he does not have the risk.
Then, what exactly is the trading investment forex?
What are its advantages and disadvantages?
Yuk, let’s examine together!
1. What’s Forex Trading?
Forex Trading is a type of investment instrument that uses a foreign currency or foreign exchange is abbreviated forex.
Forex is the use of physical currencies, which means you really holding a dollar or another currency, which is purchased.
But now, there are also forex trading through online so that it is more easy and flexible done.
This investment is also known as forex trading with a goal for profit.
Where usually, one party will buy a certain amount of a certain currency to get the difference in profit.
Actors who do forex trading, of course, have experienced and always take the time to view and analyze various factors that influence the rise and fall of currencies of the world.
How To Work Forex
Forex is actually a form of investment where you buy a foreign currency or foreign currency and hope if the value of the foreign currency that is purchased will rise.
For example, when you buy a dollar with a value of Rp10 thousand and the total current dollar to Rp14 thousand, then the profit that you earn is Rp4000.
In essence, forex currency trading, this should involve a certain currency pair and can be bought and sold according to certain conditions to achieve the maximum profit.
2. Plus-Minus of Forex Trading
Plus minus investment forex course, there must be remember all the types of investment certainly has advantages and also disadvantages of its own.
Therefore, let us discuss more in.
Get a Profit from the Difference between the Value of the exchange Rate
Benefits for investors is the difference of the value of the exchange rate when you buy and the exchange rate that is currently happening.
How can you buy dollars when the value is still low and sell it back at a higher price or buy with higher price and sell it back at a higher price again.
Meanwhile, there are three possible occurrence of the movement of the dollar that is up or uptrend, fixed or sideways and down or downtrend.
If you’re up, then the big advantage will be obtained but if it goes down, then the value of the currency will tend to decrease as well.
Before making any investment dollar, then you should know first goal of this investment.
Also make sure before start trading forex, you have also provided emergency funds that can be used for something that happens suddenly and is mendakak.
The Transactions Can Be Conducted In A Flexible
There are so many advantages of the forex one of which is a fund transactions can be made 24 hours.
It is clearly different and not as transactions that may occur in the capital market due to the currency exchange will be active for 24 hours, five days a week so you can do any transaction.
But make sure if you want to buy foreign exchange you should know if every country has a schedule of open different.
In addition, there is also a dealer or broker in the foreign exchange market so as to make the market more liquid and prices will remain stable.
Therefore, traders can close and open position them with a fair market price.
There Is No Additional Cost
Transaction costs in the forex market online is actually not there, only worn some of the costs the amount of which is very diverse as an example is the cost of the withdrawal of funds from the account forex.
The Advantage Can Be Felt Immediately
Another advantage that can be obtained trader is able to profit from the price increase that comes from the difference between the purchase price with the selling price on the purchase order.
While when doing sales, the profit will be obtained from the difference between the selling price by the purchase price or closing.
Have The System Margin
In addition, there is a trade using margin, where it could make the purchasing power of investors is higher than the owned capital.
If you have this, of course, the profit earned is a two-way when the market rises and prices fall.
Of course this may not be applicable to other types of investment such as stocks.
The Rise And Fall Of Foreign Exchange
Please be aware if each investment must have a deficiency as well as with foreign currency.
Lack of investment is that the first is the influence up and down exchange rates.
As has been known if the rupiah currency can become so weak that, even could be risky to buy a dollar because of the price is expensive.
Wait for the currency of indonesia rose can take time, so it can make trading forex losses.
The Intervention Of The Origin Of The Currency
Another risk is the presence of interference from the government the origin of which currency is being traded in the forex market.
The intervention is the intervention of the central bank of the country by increasing the value of the interest rate, release the bonds of the government as well as to buy foreign currency on a large scale.
By knowing the plus or minus investments to forex, then You you choose the type of investment that reflects the ability and the needs of the fund, the better for both short term and long term.
3. The recommendations of the Sites Becomes the Reference for Forex Trading
Many forex sites often become a benchmark for investors to know various things about the movement of the market, the economy and so on.
In addition, with the news forex, then the business can perform fundamental analysis before making an order or open a position to buy and also sell.
Fundamental analysis is very important for the trader so that the profit will increase.
Bloomberg is a business portal, where all the business related information are available here.
You can find, starting from the forex or foreign currency, the currency or currency movements as well as with rupiah, commodity, future and also stock.
By looking at Bloomberg, you will know the development of the economy.
- Forex Factory
In addition, you can also see your site forex factory is the choice of the trader.
As the name suggests, this site provides a variety of information about the fundamental at once technical in forex.
Not only that, this website will also publish the economic calendar live every day in order to provide information about forex trading.
Economic calendar provided by Forex Factory this will be a reference for traders, to determine changes in every world currency.
In addition, there is also a site dailyFX almost the same with the forex factory only difference is there’s analysis of the forex experts including forex signal.
There are also other forex sites called XE, where a lot of news regarding the site currency available in complete with reviews details, so traders will be easier to analyze various fundamental forex.
- Yahoo Finance
If to speak about the site forex trading the most favorite and can always be accessed easily is yahoo finance.
This site, is often used by traders and experts of the investment to pay attention to the news forex trading.
The site always updates and renew the information about the currency or currencies quickly, so it is visited by many ordinary people and businessman.
- Financial Times
Next is the Financial Times that present information that is updated in the world of forex trading.
One advantage is the nature of the preaching of the more neutral, because this site is not owned by the government of the United States.
The Financial Times also allocate more space about forex trading in developing Countries, including asia, in particular regarding the currency world-class.
So, the information will be obtained traders not only focuses on the major currencies only.
The next site that is a favorite among traders is CNBC.
Portal this information is also allocates a portion large enough to contain the latest information about the world of forex trading.
In fact, traders can access them anytime, because preaching is available for 24 hours.
After knowing some of the sites that a reference to forex trading then you could more wisely do fundamental and technical analysis.
Do forex trading can not be arbitrary, because the risk is relatively large.
So, before plunging you have to really know and understand how to work as well as the nitty gritty to get maximum profits.
If you’re still fairly novice investors, and still want to make the investment can start with an instrument that is not too high-risk such as deposits, mutual investment funds and money market can also buy the heaviest-weighted stock.