Tuesday, April 30, 2013

Forex Trade Sample

One of the most liquid and widely traded markets in the world, Forex trading enables you to speculate on the future direction of currencies through buying or selling the exchange rate of one country’s currency against another, with the aim of making a profit.

To Buy or to Sell?
Buying a currency pair, for example EUR/USD, simply means that you buy the first currency in the pair (EUR) while simultaneously selling the second currency in the pair (USD) on expectations that the cross rate price will rise in value and your profits will rise in line with any increase in that price.

Conversely, selling a currency pair simply means that you sell the first currency in the pair (EUR) while simultaneously buying the second currency in the pair (USD) on expectations that the price will fall and your profits rise.

Currencies can be either bought or sold, but they must be traded against each other.  There are over 150 currency pairs that can be traded but the most liquid with the highest turn-over are the “majors”. 

Major Currency Pairs
EUR/USD (Euro vs. US Dollar)
GBP/USD (UK Pound vs. US Dollar)
USD/JPY (US Dollar vs. Japanese Yen)
USD/CHF (US Dollar vs. Swiss Franc)
USD/CAD (US Dollar vs. Canadian Dollar)
AUD/USD (Australian Dollar vs. US Dollar)

Primary (base) vs. Secondary Currencies 
The primary currency, or the base currency, is the reference that defines the contract size.  The profit and loss calculation however is always on the secondary currency. Examples are as follows:

Currency Pair           Contract Size      Value of 1 pip     Value of 1 pip in US$
EUR/USD            € 100,000          US$ 10.00  US$ 10.00
GBP/USD   £ 100,000  US$ 10.00  US$ 10.00
USD/JPY   $ 100,000  ¥ 1,000   (Divide by current USD/JPY rate)
USD/CHF   $ 100,000  CHF 10.00  (Divide by current USD/CHF rate)
USD/CAD   $ 100,000  CAD 10.00  (Divide by current USD/CAD rate)
AUD/USD   AUD 100,000  US$ 10.00  US$ 10.00
Margin Requirements and Leverage 
In order to buy or sell 1 contract (lot) of a particular currency pair with ICMBrokers, an investor must have a minimum of $1,000 in the account, or about 1% margin.  In other words, a $1,000 initial margin is required for every Ccy 100,000 that is traded, which corresponds to a leverage of 1:100.

Though a 1% margin is initially required, ICMBrokers has no maintenance margin on standard accounts.  In order to guarantee that clients’ accounts do not extend into negative equity, the trading platform automatically closes all positions at the 5% Equity/Margin ratio. 

Profit and Loss Calculation Examples 
Buy 5 EUR/USD at 1.3150  |  Sell 5 EUR/USD at 1.3190
   1.3190 (open price) x 5 (lots traded) x 100,000 (contract size) = 659,500
   1.3150 (close price) x 5 (lots traded) x 100,000 (contract size) = 657,500
                                                                                                             $  2,000 (Profit)
 Sell 3 USD/CHF at 1.1205   |   Buy 3 USD/CHF at 1.1150

   1.1205 (open price) x 3 (lots traded) x 100,000 (contract size) = 336,150
   1.1150 (close price) x 3 (lots traded) x 100,000 (contract size) = 334,500
                                                                                                          CHF 1,650 (Profit)

In order to obtain USD value, the CHF Profit amount must be divided by the Closed Price
CHF 1,650 ÷ 1.1150 (closed price) = $1,479.82

To know more about our ICM Brokers FX Instruments please click the linkICM Brokers FX Instruments

دلایل شکست در فارکس

یکی از دلایل واضح سر و کار داشتن با بازاری است که در هر ثانیه حرکت قیمتها را به صورت لحظه ای به ما نشان می دهد و احساسات ما را برای ورود به بازار و گرفتن تصمیم غلط هدف قرار میده و این احساس به ما می گوید که اگر به زودی وارد معامله نشوی فرصت را از دست خواهی داد و ما با تفکر به این که "خوب این اون جایی هست که زندگی من رو بهتر میکنه" بدون توجه به سیستم خود یا اصلا نداشتن سیستم وارد بازار می شویم و خوب نتیجه را هم اکثر تریدرها با آن روبرو شده و نتیجه آن را دیده اند , بازار بر خلاف جهت و تصور ما حرکت کرده و ما همینطور منتظر هستیم که قیمت در جهت ترید و خواسته ما بر گردد تا جایی که معمولا حساب ما خالی خواهد شد 

دومین دلیل پیش بینی کردن اهداف قیمت هست که ما از مخالفین سرسخت آن هستیم این نکته را به شما نیز گوشزد میکنیم که پیش بینی کردن فقط شما رو دچار تعصب میکند و از آن جا که حس میکنید تحلیل درستی انجام دادید و این بازار هست که دارد اشتباه می کند باز هم کال مارجین خواهیدشد. در این بازار هدف ما کسب درآمد است نه رقابت با مثلا دوستانمان که این یعنی قمار

سومین و خطرناکترین دلیل نداشتن علم کافی درباره ایندیکیتورهای پیش فرض متاتریدر هست که مطمئنا همه شما با آنها و پریودهای معروفشون آشنایی دارید و بارها واگرایی های غلط آن را دیده اید و متاسفانه زمانی شما متوجه میشوید که این یک واگرایی غلط بوده است که حداقل 100 تا 150 پیپ خود را از دست داده ایدو باید به این نکته خیلی مهم توجه داشته باشید که معمولا ما در انتهای هر روند دقیقا زمانی که اندیکتورها در مناطق اشباع فروش یا  اشباع خرید قرار دارند شاهد حرکتهای بزرگی در همان مناطق هستیم

چهارمین دلیل استفاده بیش از حد از اندیکتورهای مختلف هست که در اکثر سایتها و فرومها مثل نقل و نبات آماده استفاده می باشد و شما هرروز مجبور به تغییر سیستم خود می شوید و شخصیت باثباتی را که برای کارکردن در این بازار نیاز دارید کم کم از دست می دهید و راه خودتون رو تو این این جنگل گم میکنید و تصمیم گیری شما متزلزل میشود.

پنجمین دلیل نداشتن یک مدیریت سرمایه صحیح میباشد که خیلی کم رعایت می شود چون که یا آماتور هستیم و میخواهیم به سرعت سودهایی بزرگ کسب کنیم یا ضرر کردیم و میخواهیم که به سرعت ضررهایمان رو جبران کنیم. همیشه به خاطر داشته باشید که بیش از 15% سرمایه خود را درگیر نکنید 

Monday, April 29, 2013

Simple Trading Rules

If you have read and understood the introduction in Forex now, you will learn some important trading rules and we are on your way to start creating a solid trading plan.

Do not over-trade
  • Yes of course. No one should trade without having the proper means to do so. It really makes no sense as it put the trader in a disadvantaged position even before the trader begins actual trading.
  • Beginning traders may wish to use a 1/3 of your total margin only. Do the calculations. Decide if your potential reward is worth the potential risk. If not, look for another trade. 
Always use protective stops to limit losses
    • The first discipline that any trader should master is to always limit your losses.
    • A stop loss order is set to limit a trader's potential loss. The stop loss is placed below the current price (to protect a long position) or above the current price (to protect a short position).
    Diversify your portfolio
    •  Try to avoid "Loading up" in any one commodity or product. 
     Keep emotions in tact
    • Don't make trading decisions based on "Fear and Greed", as hard as this may be.
    • Make decisions away from the market - "Don't be a screen watcher" 
    • Don't let ego get in the way
    Trade in the direction of the immediate trend
    • It means you should always trade in the direction of recent price movement.  
    • Don't try to pick bottoms or tops
    Don't add to losing positions - TARGET OUT!
    • You should have specific price levels for both the target and stop
    • Don't feel bad about losing trades. They happen all the time. Just make sure you learn from your mistakes.

    Keep it simple, more complicated is not always better
    • Trade within your understanding of the markets
     Employ approximately a 3 tl reward to risk ratio
    • Don't ever risk $2 to make $1

    Always be a student and keep learning
    • An new trader, will find new ways to learn better and faster. 
    • One sure way to become a more effective trader is to simply keep learning.
    Above all, be disciplined 
    • You must remain stalwart in waiting for your "best" opportunity to enter a position, and agile enough to keep your focus on spotting the next exit signal.

    With this type of trading rules, you can confidently utilize and fine tune your trading strategy in a controlled trading environment which focuses on long term success.

    Well that's it for the guidelines. I hope you find them useful, informative and most importantly, PROFITABLE!

    For more information about trading with ICM Brokers, feel free to visit our website www.ICMBrokers.com