컴퍼니: 외환거래

레이블이 외환거래인 게시물을 표시합니다. 모든 게시물 표시

Loss Limit Orders

It is inevitable that there is a loss when investing, but the important thing is to control the deal when we are in that situation.

You can get a fresh boost by reducing losses quickly or hoping the market will move again.

When the stock market generally fluctuates and it is converted into a bearish atmosphere, it means a way to sell off the stock price which is unfortunately regrettable. Stop Loss means stop loss and means stop loss.

Having a pre-determined point to complete a transaction not only offers benefits of reducing losses, but it also leads to new opportunities and removes the anxiety of unplanned transactions.

If the market price reaches a certain price, the market-order is the order on which the order is executed, so the loss-limited order must be entered against the current market price.

In other words, buy stop orders should be ordered higher than the current market price, and sell stop orders should be ordered lower than the current market price.

STOP orders are more likely to enter the market if they touch the conditional price, but the likelihood of slippage is high.

Sleeping is the cost incurred when buying or selling a gift at a desired price due to a margin of error when placing an order.

Types of FX Margin Transaction

Order Processing

MM (Market Maker)

The role of providing market and liquidity for market orders so that the contract is made so that the market works well

Most of the market dominant forces have considerable financial strength.

DD (Dealing Desk)

As a dealer leads a game by playing cards in a card game or game, placing a desk between the trader and the market and engaging in ordering and concluding

In other words, when a trader places an order, the broker himself or herself provides a call or liquidity in response to a trader's order and concludes the transaction

The Dealing Desk sees its own real market quotations and benefits its customers by offering quotes, spreads and liquidity to their profits.

The quotes and spreads shown to the trader are not the actual market quotes and spreads, but the quotes and spreads offered at the dealing desk. Traders are not trading in the actual market but trading with the dealing desk.

This has traditionally been a form of retail FOREX and has become a problem, for example, by interrupting transactions and distorting deals and taking unjust profits.

NDD (Non-Dealing Desk)

In order to get rid of the problem and stigma of the dealing desk, we remove the dealing desk and provide the actual market quotation to the trader so that the broker only gains the profit according to the actual market spread

Even in non-dealing-desk mode, there are two reasons why broker has different quotations and spreads.

One is because the broker and the actual market are different, and the other is the non-dealing-desk, but the broker is actually involved in the spread.

Fixed spreads are about spreadsheets, and brokers are spreading as much as possible to increase their profits.

Brokers in the dealing desk method and the non-dealing desk method earn money from the spread, so they do not receive a commission separately.

We use SURRED to earn money and advertise that there is no commission.

Therefore, please carefully consider spreads and fees to choose a good broker.

Support line and

resistance line (S / R level)

Resistance level refers to the peak at which selling pressure starts to exceed the purchase pressure, and the level at which the further rise is suppressed is called the support level.

Multiple support lines or resistance lines may appear within a chart.

Determination of buying and selling points

The support line and the resistance line serve as the low point and the high point, so the trader can get the opportunity of the low point and the high point sale if the exchange rate supports and the resistance level is reached.

Support levels help you identify long-term trends, depending on whether resistance levels are rising or falling.

The ability to measure the support line / resistance line (S / R level) of a currency is the basis for predicting monetary price movements.

The stronger the support line / resistance line (S / R level) of a currency, the more likely it is that the price of the currency will stop or reverse.

If the price of the currency continues to form beyond the support line / resistance line (S / R level), then this is a signal showing a strong market trend and the resulting price will be the support line / resistance line of the new currency I will.

What is Trend?

Trend is a basic term that is a prerequisite for technical analysis. All indicators used by technical analysts are used to analyze this trend and to determine when to trade.

Trend is the direction of the market.

The direction of these markets can be straight or curved.

Obviously, once set directions are rarely switched.

Trend analysis analyzes market price as high and low point.

The upward trend: higher and lower points are getting higher

Falling trend: gradual lowering of high and low point

If a trend is a line, it is called a trend line and trend analysis is largely defined by a trend line analysis.

This trend line is drawn by connecting two or more consecutive points in a chart.

Rising Trend Line: Draws two or more troughs in succession, also called a support line.

Decline trend line: Draw two or more high points in succession, also called resistance line.

Use of trend line

Once the trend is formed, it will continue in one direction for a long time and the period will be quite long.

Therefore, accurate trend analysis ensures high returns.

Therefore, if you analyze trends using trendlines, it is wise to keep current trends together until the trendline breaks.

A simple trend analysis can be of various lengths, intervals, angles, times, and counts of trend lines.

Investing through this analysis increases the chances of success rather than emotional dealings that are biased toward psychological conditions.

Scalping and shaving

Scalping

It is a short-term trading method that takes a little profit of 10 ticks instantly in trading.

Use tick charts or minute charts in minutes, and put a clearing order on the order of 10 ticks at the same time as you enter, so your retention period is just a few seconds to a minute or two.

Usually, when a position is caught, it is often set to automatically enter a clearing order.

Due to the nature of the transaction, the price change in the actual market must be reflected on the trader's screen on a timely basis.

Actually, there are very few traders who are able to use these techniques without any restrictions.

This can be done when the price flow is boring without major fluctuations, and there is an advantage that it is not exposed to the risk of taking a long position.

It is a method that requires concentration, quick judgment, and agile action based on strong physical strength.

Shaving

It is a way to trade for a few seconds, trading shorter than scalping.

It has a very short retention period by putting a liquidation order in just a few seconds at the same time as entering the transaction.

The scalping method is far from general traders and it seems to be correct that shaving is impossible.

Scalping or shaving method can be considered as an excellent trader who can set up a position in an exchange or a FOREX broker company and have a good deal of trading ability, but it seems to be far from general traders.

Clearing and Clearing-House

A gift is created by a seller and a lion, and a new gift contract is created. This contract is a clearing of the contract through a gift clearing house.

Clearing takes place at a designated Clearing-House.

The clearing house is an institution that guarantees the execution of futures trading by settlement of all futures traders and settles the gains of futures transactions through daily settlement.

The purpose of the clearing house is to maintain the financial strength of the futures market by guaranteeing the performance of the contract.

If the contract must be terminated before the due date

- When a trader wants to realize a profit or to eliminate a loss

- The broker is under the risk of default of the customer due to excessive losses.

If you want to force the trader's position to be cleared when exposed

- When the contract holder wants to settle early due to other circumstances

Generally, the term "settlement" refers to closing the contract after the settlement, which is the termination of the contract. However, the term "settlement" in the futures trading is used to calculate the profit or loss until the settlement date without terminating the contract between the parties. There is a difference.

Settlement

To conclude and organize the contract by exchanging money or materials after the contracting party ends the transaction

In Forward Contracts, you go to the maturity date to terminate the contract and settle the profit and loss exchange, and in the futures of the exchange, daily settlement (Marking to Market) is done.

Daily settlement refers to the calculation of profit and loss at a fixed time once a day. If the price fluctuation increases before the expiration date, there is a greater risk that the contract will not be fulfilled on the due date.

To reduce these risks, the Exchange calculates the closing price of the futures according to the closing price calculation method set by the Exchange, calculates the profit and loss between the trading parties based on the closing price of the futures, and reflects them in the accounts. These prices are called settlement prices or settlement prices, and such operations are called settlement.

Generally, settlement refers to closing the contract after the settlement, which is the termination of the contract. However, the term "settlement" in the futures trading refers to the calculation of the profit and loss until the settlement date, without terminating the contract between the parties.

Hedging

In the same account, you can have both the selling of the same product and the buying bid both positions at the same time.

If you have bidirectional positions in a hedging account, you can reduce the risk of price fluctuations by adjusting the number of buy and sell positions, as the price fluctuates, one side gains more revenue and the other side gains more losses. It is called avoidance (hedging).

Hedging accounts distinguish between sell, sell, liquidate, buy and sell. In other words, in order to liquidate a buy position, you must liquidate the buy, not sell. Conversely, to liquidate a sell position, you must liquidate the sale rather than buying it.

For example, if you have 10 gold futures contracts (positions), and you enter the same gold futures 5 contract into a sale contract (position), your account has 10 gold futures positions and 5 gold futures positions I will be together.

Netting and Single-Positions

Netting

In the same account, you can only have the same merchandise in one direction, either sell or buy.

That is, you can not have both the buy and sell contracts of the same commodity in one account at the same time.

For example, if you have 10 contracts for a gold futures contract and 5 contracts for a reverse contract, 5 out of 10 buy contracts will be liquidated, leaving only 5 buy positions It's possible.

We have simplified the trading method to either buy or sell, and it works without the concept of clearing orders.

A single-position position is called a single-position.

Differences between exchanges and

over-the-counter transactions

Exchange (Exchange)

It is established on the basis of the law like the Korea Exchange and has publicity accordingly.

Commodities traded are standardized and standardized by certain standards and formats, so that everyone can trade on the same terms and charge a commission.

Commodities traded on the exchange are called Exchange Listed Instruments.

It is based on the notion of a nonprofit organization as a public institution like the Korea Exchange.

OTC (Over The Counter)

It is a collective term for all transactions traded outside the above-mentioned exchange.

Unlike exchanges, transactions are basically based on transactions between two parties who want to trade, and they are freer than exchanges because traders can set up conditions freely without being informal, institutionalized or standardized / standardized.

Products that are traded outside the shop are called

OTC Instruments.

Buying, selling and various positions

buy <=> sell sell

long librarian holds <=> short lending (short sale)

It means simply to give money and buy stocks, and sell is the opposite of buy. Just like buy, it simply means 'sell'.

long positions

A long means that when a stock is expected to come up,

it buys money, buys it, and holds it.

The state that you bought stocks is called long position.

short positions

When the stock price is expected to go down, there is no stock, so it is short to sell the borrowed stock.

Because short has borrowed and sold the stock, it is in a condition to buy back the stock again.

A short position is a state where you have borrowed a stock and sold it back and it is called a short sale.

buy and long

It 's not clear whether buy is to buy it or buy it to liquidate the existing short position.

On the other hand, a long has bought it to have it, and it certainly means it has a stock.

sell and short

It is unclear whether sell sells to settle existing stocks or sells for new short positions.

On the other hand, a short does not have any stocks, so it is clear that they have borrowed the shares and have not yet repaid them.

Therefore, depending on the situation in which you are speaking, buy and long may be the same or may be quite different. Sell and short are also the same.

open position open position

It is either a long position or a short position because it is a state that is open or occupied.

Foreign exchange appreciation and exchange rate depreciation

What is the won appreciation?

This means that the currency of your home currency will increase the value of your home currency against foreign currencies.

In other words, they say, "There are a lot of foreign currencies," "my home currency has risen," "foreign currency weakness," and "home currency strength."

For example, on January 16, 2015, CAD / CHF was 80 per Canadian dollar, and on January 17th, it became 72 per Canadian dollar.

In other words, you can see that the Swiss franc appreciated against the Canadian dollar.

What is exchange rate depreciation?

This means that the currency of your home currency is depreciated against the foreign currency.

The same can be said of "lack of foreign currency", "domestic currency falls," "foreign currency strength", "domestic currency fall".

For example, if the KRW / RUB rises to 58.54 rubles per thousand won on January 24, 2015 and rises to 60.63 rubles on January 27, 2015

The interpretation is that the ruble is depreciated against the won.

Trading investors with margin calls

What is Margin Call?

The Broker automatically closes orders when the loss of the valuation asset, less the loss of the traded transactions held by the user, reaches the retained margin of the account

In other words, it can be viewed as a device that allows you to cover losses in your investment to prevent losses that exceed your investment.

If you do not use a margin call and you lose more than your investment, you must pay the broker up to the excess loss.

Forex trading is a 24-hour market and you may not be able to cope with the rapidly changing situation, so you need a safeguard that will protect your investment at least.

Types of investments that are subject to margin calls

1. Investments that want to earn high profits in one day

2. Investments that believe in auto buying and do nothing

3. Investments without knowledge of fundamentals of FX margin trading

4. Select any broker without interest in trading information, usage forums, reviews, etc.

5. Investment to implement without stoppage

Spike phenomenon

The spike is the opposite of a trend in the marketplace, with a sudden rise in price fluctuations, resulting in a sticky spike in the form of a spike.

Spikes are one of the phenomena that distort price flow.

If you see spikes

When an unexpected situation occurs suddenly in the market

When a large order error occurred in the market maker

When a massive amount of market makers poured in

When certain major forces intentionally shook the market

The actual market did not spike, but the data

In some cases, it is only visible on the chart because of the error.

Spikes are instantly reversing trends and momentarily returning to their original position.

If a spike occurs, it looks like the trend is changing on a short-cycle chart, but if you put a chart on a long cycle, it does not change the trend due to spikes.

Key Terms for Foreign Exchange Transactions

pip (point)

In the international foreign exchange market, the unit in which the exchange rate changes is referred to as pip point.

The value of 1pip for each currency depends on whether the USD is in the base currency (USD / JPY, USD / CHF) or the comparative currency (EUR / USD, GBP / USD).

Transaction unit

A typical base unit of transaction is 100,000 units.

That is, the base currency is 100,000 units is 1 contract.

Call unit

In foreign exchange transactions, the call unit is called pip.

The unit of 1pip depends on the base currency or the comparison currency.

Rollover interest (Swap)

This is the amount paid or interest charged at the end of each trading day.

At margin trading, you will be paid interest for a short position while paying interest for a short position.

The difference in net interest rates is known as carry, and traders who want to benefit from this are called carry traders.

You will only be paid when you have an open interest based on the settlement time (SummerTime not in effect / AM 07:00 in Korea time) for the amount you borrowed, which is referred to as a swap.

The bank will calculate the base time for the settlement at 5:00 pm in New York, 7:00 am Korea time.

As a result, if you hold a position before 7:00 am, please be aware that interest will be charged on your position.

Interest will be paid in interest for one trading unit.

Spread

The spread is the difference between the buy / sell price and the buy and sell prices in the foreign exchange market are announced to the foreign exchange dealers.

The bid price in the customer market is reported as bid => bid price, ask => buy bid price.

Forex Trading Stop and Limit

Stop is an order placed at a price lower than the current price, and Limit is an order placed at a price that is more favorable than the current price.

Stop means stop something that is going to be disadvantageous, and StopLoss is what stops a transaction from getting lost as well.

Limit is used in trading terms to set the price or amount to be paid.

In a sell order, the order placed at a lower price than the current price becomes a stop order and the order placed at a price higher than the current price becomes a limit order.

On the other hand, in a buy order, the order placed at a price lower than the current price becomes the limit order, and the order placed at a price higher than the current price becomes the stop order.

StopLoss

StopLoss is to stop the loss from continuing.

If the price moves in the opposite direction to the position and the loss occurs, the loss is fixed and the position is cleared to stop the loss from becoming larger.

It enters the market place order when it reaches the conditions such as the specified price or loss amount.

When the Stop Losing order is executed, the actual closing price is equal to or worse than the set stop price.

The difference between the set price and the actual price is called Slippage.

Sleepy papers will become larger as price fluctuations increase and gap fluctuations occur.

The impact of spread on foreign exchange transactions

In foreign exchange, spread is the difference between the buying and selling prices. Brokers or dealers always sell the currency at a higher price than the buy price.

Spreads allow intermediaries to spend money and generate revenue. In fact, spreads are a kind of commission to traders for each transaction.

In foreign exchange transactions, the lower the spread, the better. However, depending on the type of transaction, it may not be significantly affected.

If you focus on long-term investment, you can ignore the spread size. In this case, the total number of transactions for a given time period is small. This means that the total cost of spreading is low.

For short-term traders, the association with spreads increases dramatically. If the chosen Forex trading strategy requires a lot of transactions per day Spread size is the most important trading factor.

Spreads of financial instruments can be changed or maintained consistently. People call it variable spreads and fixed spreads.

Types and differences of foreign exchange transactions

1. Customer transactions and inter-bank transactions

Customer transactions: Fair exchange rates and fixed rates as foreign exchange transactions between banks and individuals or companies

Transactions between banks: As a large-scale transaction, the exchange rate fluctuates freely according to the supply and demand of foreign exchange.

2. Direct transactions between banks and transactions via brokers

Direct transactions between banks have the advantage of providing a close working relationship.

A brokerage transaction does not have to create a market and place a trading order by presenting the price.

3. Intra-Company Transactions and OTC Transactions

Intra-Intra-transaction: Foreign exchange trading is conducted by trading at a stock exchange on a daily basis

Over-the-counter transactions: Foreign exchange transactions that are not in a specific place

4. Spot, forward, swap transactions

Spot transaction: A transaction in which the spot transaction is due within two business days after the contract is concluded

Forward transaction: A transaction in which the settlement of the spot is made in excess of two business days after the sale contract

Swap transactions: Buying and selling (selling) spot futures contracts to sell futures

5. Futures trading and options trading

Foreign exchange futures trading: A contract that pledges to buy in kind at a fixed price at a future date

Currency Options Transactions: Contractual rights to buy or sell a certain amount of currency at a fixed price within a certain period or during a certain period

Forex trading and stock trading

liquidity

Foreign exchange transactions are highly liquid investments that can be concluded immediately at any time.

Stock trading, on the other hand, has the disadvantage of waiting for trading partners to appear even if they want to trade when stock prices fall.

Profitability

Forex trading is always a profit opportunity and you can earn big profits with high leverage effect.

In addition, there is an equal opportunity for both rising and falling prices.

Stock trading sees losses when stock prices fall.

stability

Foreign exchange trading is a stable trading product that trades the currencies of major advanced countries and has high monetary value.

Stock trading is relatively risky because of the possibility of bankruptcy.

Transparency

Foreign exchange transactions are arbitrage transactions through the exchange rate, so manipulation is impossible and fair trade is possible.

Stock trading is a risk of damage to ant-investors and market confusion due to the intervention of the operational forces.

The relationship between exchange rate movements and economic trends

Just as economic trends affect the movement of exchange rates, the movement of exchange rates can also have a significant impact on economic trends.

If Japan announces policies such as lowering the benchmark interest rate to boost its economy or adding asset purchases, yen appreciation will increase in the market, so prices will rise and the value of the yen will often fall.

If the yen weakens, the price of commodities that depend on imports from Japan will rise, which can hurt Japanese economy by shrinking consumption.

On the other hand, the yen has a very positive effect on Japanese exporting companies.

Even if you export goods at the same price, you will get bigger profit if you change the payment amount to yen.

On the other hand, if the global economy shows shrinkage and demand for safe assets surges, the value of the yen, which is one of the representative safety assets, often climbs up.

If the yen appreciates, exporting companies that sell their products to foreign countries may be positive for importers who are able to import goods with less money, while sales are hit harder.

If the price of imported goods declines, the domestic price will stabilize, consumption will be boosted, and the burden will be reduced for companies paying their foreign debts.

If the exchange rate rises or falls, each has its own shortcomings and disadvantages. In any case, it will have a great impact on economic trends. Therefore, central banks in each country make use of various policies and strive to maintain appropriate exchange rates.

For this reason, it is important to look at the economic indicators to know the exchange rate before the FX transaction.

About Company

We areBeast-Company

Neteller,Skrill Korea company

BLOG POST