The concept of Forex transactions
All operations on the Interbank Forex market, in fact, represent the opinion of Forex transactions. Most of the players are getting a deflation, making a price difference between buying and selling. This could include small traders with small deposits (up to $ 10,000) and large investors. And only some unimportant, in principle, the current price-they need to exchange one currency for another at the current exchange rate, etc. It is banks, foundations, etc.
To make a profit, you need to predict what will be the value of the currency in the future, after 5 minutes, an hour or a week. Depending on the prognosis is entering and exiting the market, and there are a variety of traders (the time closing deals): Intraday (deals within days), dejtrejdery (transaction is held by day or a couple of days) and long-term (deal can be kept for days and weeks).
Use a variety of methods for prediction: most often this economic performance or technical analysis in understanding the psychology of the players. Much more rarely used intuition. Approach to forecasting is rather logical, analytical.
Stages of Forex transactions
Forex deal is different from regular purchase/sale of currency. Everything takes place virtually and remotely via the Internet. Try to consider the stages of Forex transactions.
Trader trades through a broker (dealing Center), which in turn passes the traders more big broker, who brings them to the market. The relationship of the trader and the broker (actually, trade) via trading terminal ( Metatrader 4). Thanks to Mt4 trader sees your account balance, open and closed positions, the current quotation of the currency and more. The trading terminal is indispensable for technical analysis, performing a lightening speed of many operations with calculations and graphical objects on currency charts.
Stages of Forex transactions as follows:
1. Request currency quotes.
The trader specifies the currency pair and the volume of position (for example, EUR/USD, 0.5 lot).
2. getting the current quotes. Let's say 1.2200/1.2202. The difference in price is due to the presence of spread, in this case it is 2 points.
3. order placing.
P lučiv rate, the trader decides to (or already had) to open position. There are positions on the Buy, Sell or cancel the operation (Out). There are also pending orders (BuyStop, SellLimit and SellStop, or BuyLimit orders) that are either above or below the current price. The broker will not allow you to set the application too close to the current price, but only at a certain distance.
4. conclusion of Forex transactions, that is a confirmation of the operation.
Striking a deal (opening position), the trader could not be undone by-position must be closed with a profit or loss, or zero. Therefore, it is important to treat with the utmost care for the opening of the new position, having assessed the volume and direction of the transaction.
Despite the apparent complexity of all stages of all happens very quickly: the time from pressing the trader "new order" button (F9) to open position is from a few hundredths of a second to several seconds. This time is determined by the type of account (DD, NDD) and the speed of your Internet. Also important is market volatility, with strong fluctuations of the broker may seek a new price, since it is not interested in starting position on unprofitable for a price.
Forex deal is an important stage of trading. The timing and market entry points, the trading position, out of her-all this you need to take into account in its trading system. And then you will have the maximum chance of success in the Forex market!
Expert advisors for MetaTrader 4
The work of the Forex market