FOREX VOLUME SPREAD ANALYSIS
Important Factors Of Forex Market
Foreign Exchange is the largest market in the world, with volumes close to 2 billion dollars a day.
Listing Rules Of Forex:
Currencies are traded in pairs, the first currency (Listed on left) is recognized as the base currency, while second currency is called compensation.
The quotations are using a five-digit numbers whose last decimal represents a dixmillieme the value of the currency. Dixmillième This is called a “Point” or “Pip” …
For example: For the pair Eur Usd there is a “Pip” difference between 1.2512 and 1.2513 …
The Spread:
Unlike the stock market, there is no commission. “Spread” is applied between the purchase price and the selling price.Spread of the value can vary, depending on the pairs, the size of your account and the brokers.Spread usually performed from 2 to 10 pips .
Margin:
The forex trade is uncovered by hiring a stake in the form of “Lots”.The “margin” or minimum coverage required for 1 lot of EurUsd among Coutier utilser Metatrader platform is $ 1,000 …
A price change of currency 1 pip on EurUsd parity, leads to a gain or a loss of $ 10 .0.01 for batch, the gain or loss is 0.1 per pip.If the margin account is insufficient, some brokers automatically close all or part of the current position .Some other close all or part of the current position on negative equity.
Equity is the net asset value of the account .
Dynamics of Forex:
Financial analysis:
The currency market is influenced by changes in interest rates applied to each of them by the central banks of each country …
These same rates are under the direct influence of macro-economic statistics, the most important are those from the USA …
Technical Analysis:
The practice of trading in this market shows that it is also strongly influenced by notable figures associated with fondametaux of technical analysis …
Pivots Point – Thresholds and resistance – Fibonacci etc.
Dangers Of Forex Market:
1.Very strong potential volatility .
2.It is essential to test your strategies before going virtual to reality!
3.Profitable trading is done with the money market!
4.Major advantage in forexyou won’t get bif loss.
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About the Author
I am a Forex Trader.I love currency trading.
Live Trading Using Volume Spread Analysis – Part 2