This article describes the rules for trade in FOREX trading platform with Rumus. If you have not traded in FOREX, then this article will help you figure out how to make deals in the market FOREX. If you previously traded on the FOREX with other programs, then this article will be useful to you read to understand the differences Rumus, its unique features, learn the terminology it uses.
1) Making a profit.
To reap the benefits need to buy currency cheaper and then sell the more expensive or more expensive to sell and then buy cheaper. The size of the profit depends on the difference between the purchase price and sale price. If you correctly predicted would go up or down the price - you get the profit. If not - a loss. Despite the fact that your account is dollars, you can always sell any other currency. Thus, you can earn not only on currency appreciation, but also cheaper.
2) The amount of the transaction. The balance of the account. The degree of risk and return.
The size of the profit also depends on the size of the transaction, ie, amount of currency bought or sold. The greater the amount of the transaction - the more profit you can get a price change, but the greater the risk of losses. The volume of transactions, which you can enter depends on the amount of money in your account - it's called balance or deposit. The funds in your account are used as collateral for your trades.
The maximum amount of the transaction - this is your deposit, multiplied by 100. If you do account for $ 1,000, the maximum amount of the transaction you will be 100 000 units of base currency.
The minimum transaction size is - 10,000 units of base currency.
If you deposit in the account equal to $ 1,000, you can choose the volume of trade from 10,000 to 100,000 in increments of 1,000, depending on your trading strategy.
To make a deal the minimum volume of 10,000 euros (or any other currency) required a deposit of $ 100. If you are willing to take risks, hoping to make big profits - install larger amount of the transaction. If you want to earn a little, without risking your money - choose the smaller size of the transaction.
Deposit (Commitment) is neither a commission nor a payment for the conclusion of transactions, these funds still belong to you and you can pick them up at any moment, if they are not used for current open positions.
3) Tools.
In FOREX, you can trade in so-called tools. The tool is a pair of currencies, the first of which you are buying or selling a second currency. For example, the trading tool EURUSD, you are buying or selling your selected amount of euro (EUR) for Dollars (USD), and costs, such as 1.2367 dollars per euro. Often, in this case we say simply that you are buying or selling tool EURUSD.
Currency you are buying or selling, commonly referred to as base currency. Currency for which you buy the base currency (in which you assess the value of the base currency) is called the quote currency.
4) The conclusion of the first transaction.
To start trading you need to make a deal:
Choose a tool (currency pair), the change in price that you want to earn
Select the volume (the amount of currency) in which you want to trade. The greater the volume, the more you can make a price change, but the greater the risk of incurring losses
Click on Request a Quote
Get the price you need to click on Buy or Sell depending on your prediction, what will happen to the price. The resulting price is valid for only a few seconds, as the quotations (prices) in the FOREX market changed almost every second.
If prices are gone, and you were not able to make a deal, then click on the Request for Quotation again.
Once you make a deal, you will see a confirmation window with the parameters of your open position, and in the window "trading terminal" will be an open position.
5) Open position.
After the transaction you have a open position. In the open position, each change of course tools, leads to changes in your profits or losses. This so-called operating margin.
6) Closing of the transaction.
In order to take profits (ie, current earnings credited to your account) to close the deal. For this we need to sell / buy the currency you bought / sold at closing. Closing of the transaction is carried out just as the opening transaction. Simply right-click on the open position and select from a list of "close position". After the closing of the transaction price change a currency pair will not affect your current income.
7) traded instruments.
Trade is carried on the following instruments: EUR / USD, EUR / USD
GBP / USD GBP / USD
USD / JPY USD / JPY
USD / CHF USD / CHF
EUR / JPY EUR / JPY
EUR / CHF EUR / CHF
CHF / JPY CHF / JPY
AUD / USD Australian Dollar / U.S. Dollar
NZD / USD New Zealand dollar / US dollar
USD / CAD U.S. Dollar / Canadian Dollar
CAD / JPY Canadian Dollar / Japanese Yen
GBP / JPY GBP / JPY
EUR / GBP EUR / GBP
GBP / CHF GBP / CHF
AUD / JPY AUD / JPY
EUR / CAD EUR / Canadian dollar
GBP / CAD GBP / Canadian Dollar
AUD / CAD AUD / Canadian Dollar
AUD / CHF AUD / CHF
EUR / AUD EUR / AUD
CAD / CHF Canadian Dollar / Swiss Franc
NZD / JPY NZD / JPY
8) Paragraph (Pip). The cost of the item. Profit.
Point is the minimum possible price change. For instruments in which the quote currency is JPY (Japanese Yen) one point is equal to 0.01 for all other instruments 0.0001.
Value of the item referred to the income you receive if you sell an instrument at a price of 1 point higher than bought. The cost of the item is different for different instruments, and it depends on the position.
To position per 10 000 point price is approximately equal to $ 1, to be precise, then:
tool, which is the quote currency USD (EUR / USD, GBP / USD, AUD / USD, etc.), transaction volume for 10 000 point price is $ 1
for tools that have the quote currency is CHF (Swiss Francs), CAD (Canadian dollar) for the transaction volume of 10 000 price point is $ 1 divided by the U.S. dollar relative to the quote currency (USD / CHF and USD / CAD, respectively) .
for tools that have the quote currency is GBP (British Pound), AUD (Australian Dollar) for the transaction volume of 10 000 price point is $ 1 multiplied by the rate quotes for the U.S. dollar (GBP / USD and AUD / USD respectively .)
for tools that have the quote currency is JPY (Japanese Yen) for the transaction volume of 10 000 point price is $ 100 divided by the rate of USD / JPY.
For any transaction profit can be calculated as follows: the volume of transactions divided by 10, 000, multiplied by the value of the item in the volume of transactions of 10 000 multiplied by the difference in points between the opening and closing positions.
9) Spread.
At any time, the price at which you can buy a tool, somewhat higher than the price at which you can sell it. Accordingly, if you buy the tool and then sell it, you get a small loss. This difference is called the spread, and it is through this difference brokerage company receives its income.
In our company spreads fixed at any time, unlike other companies, who reserve the right to increase the spread at any time.
Spreads are set out in paragraphs: EUR / USD 3
USD / JPY 4
USD / CHF 4
GBP / USD 4
USD / CAD 5
EUR / JPY 4
GBP / JPY 8
EUR / GBP 5
CHF / JPY 6
EUR / CHF 4
GBP / CHF 8
AUD / USD 5
NZD / USD 4
AUD / JPY 10
EUR / CAD 10
GBP / CAD 15
AUD / CAD 8
AUD / CHF 10
CAD / JPY 6
EUR / AUD 10
CAD / CHF 10
NZD / JPY 10
10) Orders
Account type ExpertFX allows you to use a powerful system of orders (orders) to improve your trading. Account type ExpertFX does not imply restrictions on the direction and magnitude of the lots, which gives you the opportunity to sell not only simple but sophisticated trading strategies.
Pending orders
The first part is a powerful system of orders pending order. This order type allows you to:
Open long or short positions;
Close long or short positions;
Increase (top-up) or decrease (partial closure) the amount of the position;
Promptly change the direction of the position (revolution);
To create virtually any binding of several orders.
The main advantage of pending orders is that their use allows the trader to provide a very small amount of time to trade in a day.
Open positions with the pending orders
You can open any of the (long and short) position with the pending orders. Take the example of a long position. Let the rate of USDJPY stands at 83.20 (see Figure 1). Do you think that the course will grow more rapidly when it reaches the level of 85.00 (level 2 in the figure). You can set the order for the purchase of 85.00. This means that if the price reaches a level of 85.00, the broker will buy for you the U.S. dollar against Japanese Yen.
If you believe that after reaching a level of 85.00 on the contrary the price will decline, then the level of 85.00 can set the order for sale. This means that if the price reaches a level of 85.00, the broker will sell you to the U.S. dollar against Japanese Yen
Fig. 1 The use of pending orders to open positions
Closing positions by means of pending orders
You can close any position with the pending orders. Take the example of a long position. Let the price is at around 83.20. Are you planning to close the deal at a price of 85.00. At the level of 85.00 you set the order for sale so the same amount as your position. When the price reaches this level, your order will be executed, the transaction will be closed (see Figure 2).
If you open a short position, then to close this position will need to set an order to buy at your preferred level. If the price reaches a specified level you, purchase order will be filled and a short position is closed.
Fig. 2 Using the pending orders to close positions
Traders often use pending orders to close positions to protect capital against losses and lock in profits.
Attention! If you set the order to a certain position, then remember that the closing position by hand does not lead to the removal orders. When you close the position manually do not forget to remove the warrant.
Manage the size of the position with pending orders
One of the tenets of profitable trading states, "let's grow profits." How this is done in practice? Often traders to obtain excessive profits are increasing positions (plus) if the price moves in their direction. Consider an example. Suppose you bought a U.S. $ 100 000 against the yen at a price of 83.20. At the level of 85.00 you can place an order to buy another U.S. $ 100 000 against the yen. If the price reaches 85.00 and will move on, then your profits will grow 2 times faster than before add. Illustration is shown in Fig. 3.
With the pending orders, you can either increase or decrease the position.
Fig. 3 Add - increasing the position with pending orders
Changing the direction of the position (revolution) with pending orders
Pending orders can be used by you to completely change the direction of positions. Suppose you are long with a volume of 100 000 U.S. dollars against the yen and believe that when the rate reaches 85.00, the price will drop. If you think that the price will fall, you can easily expand your long position at short. To do this, mark 85.00 you can put an order to sell U.S. $ 200 000 against the yen. When the price reaches a level of 85.00, your order will be executed. A long position is changed to short.
Fig. 4 coup with a pending order
In conclusion we can say that the type of account ExpertFX provides maximum flexibility during installation orders: any size, any destination, the powerful cords of the orders.
VZAIMOOTMENYAEMYE ORDER
If you are using a type of account ExpertFX, then you can use a combination of two orders. This band is called - "Vzaimootmenyaemye warrant." The meaning of this ligament is revealed in its title: execution of one order cancels the other.
Vzaimootmenyaemye orders may be used:
Open positions in order to capture any market movement;
Closing positions to protect capital and lock in profits;
Volume control position.
Opening positions in order to capture any market movement
Suppose you and I look forward to the news. We will not know in which direction the price will move after its publication. The price may go up, but can go to the bottom. Vzaimootmenyaemye orders can be a means of capturing any price movement. To do this we will put an order to buy and one for sale. These orders must be Vzaimootmenyaemye. If the price after the news moves upward, the work order for the purchase. If the price goes down, the work order for sale.
Fig. 5 Using vzaimootmenyaemyh orders to open positions
Of course, you can place orders to buy down, and on sale - up.
Closing positions to protect capital and lock in profits
If you opened a long position, you can put an order to protect profits - and stop-loss orders on profit-taking - take profit. Typically, these orders do vzaimootmenyaemymi. Let us consider a concrete example: you bought the euro against the U.S. dollar price of 1.3600. 1.3900 to the mark you can place an order to sell. It will be used for profit. 1.3500 to the mark you can place an order for sale. It will be used to stop the losses.
Fig. 6 Using vzaimootmenyaemyh order to protect capital and profit
Management capacity position and its direction with orders vzaimootmenyaemyh
With vzaimootmenyaemyh orders you can perform any manipulation of your position:
Increase the volume (top-up);
Reduce the amount of (partial closure);
Change direction (turning).
WARRANT FOR EXECUTION
Orders for execution - is the next part of the powerful orders when dealing with the type of account ExpertFX. As with all orders that are available when working with the type of account ExpertFX, orders the execution have no restrictions on the direction and magnitude of the lot, which allows you to create virtually any binding orders for the efficient operation of the market.
Order for execution may be used by you to:
Simultaneous opening of the position desired level and set a stop-loss orders and take profit;
Creating strong links to the position of the controls and the installation of protective orders, etc.
The simultaneous opening of a position with the right level and set of orders to her
This is the most commonly used version of the work with orders to execute. For example, we believe that the euro / U.S. dollar will continue to grow after reaching a level of 1.4000. At this level we put the purchase order. By order of purchase, we can "attach" stop-loss level at 1.3900 and take profit at 1.4300 level. "Attachments" orders will begin work only when it is executed a warrant to purchase, set at 1.4000. Illustration is shown in Figure 7.
Fig.7 The simultaneous opening of a position with the right level and set of orders to her
Attention! If you set the order to a certain position, then remember that the closing position by hand does not lead to the removal orders. When you close the position manually do not forget to remove the warrant.
Creating strong links to the position of the controls and the installation of protective orders
Since the order when working with type ExpertFX have no restrictions on the direction and magnitude of orders a lot, you can create custom bundles of orders to the controls position. Consider the example of a ligament. Suppose we bought dollars against the yen at a price of 83.50, and we expect further growth. To protect against risk, we set a stop loss order (an order to "sell") to the level of 80.00. This is a simple example of the transaction and set it to "stop loss". If the stop-loss order works, then we get a negative result.
Figure 8 Installing orders
We could limit ourselves to this simplest option. But working with the type of account ExpertFX, we can implement more sophisticated options trading. This will give you more benefits. This can greatly increase your profits! Consider a simple example. We bought a U.S. $ 100,000 against the yen at 83.50 price. Instead of a simple order to protect the capital we put a bunch of pending order and warrant of execution. At 81.00 we set a mark pending orders to sell 50,000 dollars against the yen. To this pending order set to execute an order to sell 50,000 dollars against the yen at a price of 80.00
The idea is that through the combination of a pending order and orders the execution of the transaction we will leave in two stages (see Figure 9), and it will significantly reduce potential losses. A smaller amount of damages, the greater the amount of net profit.
Of course, you could set up in series two simple orders. But the control of two orders is more complex than one band. A bunch of orders can be quickly and easily remove and put back quickly. Thus, you will not only win in the commercial result, but also have the ability to more quickly change your orders!
Fig.9 Output of the transaction in two stages through the orders ExpertFX
Creating such bundles can be only if you use the type of account ExpertFX.
* You can set the pending orders are not closer than 10 points from the current price
11) Calculating the amount of available deals
The maximum available at the moment amount to a new deal depends on your current balance. Operating profit / loss on your open positions do not affect the size of the transaction.
The maximum volume of new transactions = 100 * (current balance - Commitment)
12) A few open positions. The total position.
You can simultaneously hold several open positions in different instruments, but can not hold multiple positions on one instrument.
You can change the current open transaction, if you think about the future movement of exchange rates has changed, but you still do not want to close the position and fix the result of the transaction.
If you become more confident in the correctness of his forecast, you can increase your transaction, and thereby increase the chances of profit. To do this you need to do a deal for the same currency pair in the same direction (for example, if you had bought GBP, you will also need to buy GBP). When the transaction price of an existing deal with the average transaction price increase, the current income will remain unchanged.
If you become less confident in the correctness of his forecast, you can reduce the amount of your transaction, and thereby reduce the risk of potential losses. To do this you need to do a deal for the same currency pair in the opposite direction, a smaller volume than the existing transaction (for example, if you had bought GBP, you will also need to sell some GBP). When the transaction price of an existing deal with the average transaction price reduction of volume, current profits will remain unchanged.
If you decide to completely change your outlook on the opposite, you can "flip" your transaction in the opposite direction. To do this you need to do a deal for the same currency pair in the opposite direction, a large volume than the existing transaction (for example, if you had bought GBP, you will also need to sell GBP more than you had). When the transaction price of an existing deal with the average transaction price reduction of volume, current profits will remain unchanged.
Let us consider a concrete example of a partial closing.
Have you bought 100,000 EUR against USD at 0.8800, when the rate of 0.8850 marks you decide to sell 50,000 EUR against the USD. In the end, you still bought position 50,000 EUR at the rate of 0.8750! Ie In this case the profit on the partial closure has not acceded to your deposit, and is reflected in the change (in the best direction for you) course open position.
Consider the example of transaction-type revolution.
Have you bought 100,000 EUR against USD at 0.8800, when the rate of 0.8900 marks you decide to sell 200,000 EUR against the USD. As a result, there you have position: sold 100,000 EUR at the rate of 0.9000! Ie in this case, the profit from the revolution and not joined to your deposit, as reflected in the change (in the best direction for you) exchange rate of the new position.
13) The Commission for the rollover to the next day.
The fee is charged or credited to the trader in the Forex rollover to the next day because of the difference in interest rates is called SWAP.
The commission amount depends on the level of interest rates in countries whose currencies on the Forex trader has the position.
Transactions on the Forex market are under the SPOT. This means that all transactions entered into in the current working day delivery must be made whole amount of currency on the second business day. To avoid this supply, it is necessary to make the transaction type SWAP (ie, close and reopen the position on the current exchange rate), which allows you to settle obligations of the parties.
This operation is performed automatically in your account at 21:00 GMT.
Course opening and closing different by some amount - swap-points. Number of swap-points is calculated based on interest rates for each currency, and can be either positive or negative.
SWAP operations dates from Wednesday to Thursday is Friday and Monday, and, accordingly, the swap points are multiplied by 3 days on Wednesday at 21:00 GMT. In the case of holidays in the country of the currency swap contract settlements, also multiplied by the corresponding number of days.
Table of swap points listed on the site of the Company.
14) Quotation Options
When trading with the type of account ExpertFX you can choose between different methods of quoting:
The method of "fixed price";
Method «Instant Execution (instant)"
Each of these methods has its advantages. Let us examine them in detail.
Method «Instant Execution (instant)" - this mode quotation in which you make a deal immediately at the current price. Prices are broadcast broker in your terminal.
The major advantage of trading in the mode «Instant Execution (instant)" is the speed of the transaction. Sometimes the deal can make a split second. It is very important when trading in a dynamic market.
It is important to remember that in a mode «Instant Execution (instant)" you can get the so-called requote. Requote - it is the fulfillment of your application at a price different from you specified. Requotes appearance due to the fact that the dynamics of market prices can be very high. For example, you click "Buy" to 1.3200. For while the application was for the purchase to the shopping server, the price has changed. Therefore, your request to buy can not be satisfied. The broker will offer you a different price. For example, 1.3202. It is important to note that requote equal probability can be in your favor and against you.
The method of "fixed price" - a mode of transactions passed between the banks ("trade on the interbank market.") ForexClub offers you the opportunity to trade in this mode. The mechanism of such trade between banks is as follows:
A bank wishing to make a deal, drawn to the bank B on the phone or through an electronic system to find out the price of purchase / sale of foreign currency. The bank B does not know will be a bank or bank B to buy or sell;
Bank B, Bank A reported the purchase price / sales;
If these prices are satisfied with bank A, bank A enters into a transaction: the purchase or sale;
After that Bank B confirms the transaction. Please note that once the bank has made a deal, Bank B can not change the price. That is in the "fixed price" can not be requotes.
It is important to understand that this arrangement creates a level playing field for both parties involved in the transaction. Bank B does not know what actions are going to take a bank: to buy or sell. If the bank knew, that Bank A wants to buy, it might give him a higher price and earn more on this deal.
If you are trading in the "fixed price", you first ask for pricing ForexClub. ForexClub then gives you the purchase price and sale price, and you make a deal. By submitting your purchase price / sales, ForexClub also does not know what you want to do: buy or sell.
We recall once more the advantages of the regime "Fixed Price":
Equal terms of trade for both buyer and seller exchange;
Fixed prices for the transactions;
Mode "Fixed Price" - is standard banking transactions;
Lack requote.
Changing the quotation made in the "Properties" of the trading terminal.
