Forex Trading System

Forex Trading System - With import and export is no longer a major cause of currency trading, the currency trading 100% determined by the mechanism of supply and demand are met in the market. However, the import and export activity is still used as one of the information to determine the exchange rate. Therefore, the announcement of the value of the balance of payments deficit or surflusnya U.S. still awaited, as this information will be used to take short positions or buying by investors. If so, then how the forex trading system? Principally there are two systems, namely physical and margins.

Physical trading
In principle, this trading system is a cash and carry or spot trading, the currency exchange investors who act as money in the currency that act as articles. Trading is like a trade market, that person buys goods - certain currency - at market price. Examples of this trading system is a money changer or bank money and foreign exchange broker.

For Example:

Market price: USD 1 = Rp 8,000
Buy: USD 1,000
Needed funding: Rp 8,000,000 (Rp 8,000 x EUR 1.000)
When the market price of USD 1 = Rp 9,000
Sell: USD 1,000
Obtained results: Rp 9,000,000 (Rp 9,000 x USD 1,000
Advantages: Rp 1,000,000 (Rp 9,000,000 - Rp 8,000,000)
Return if return: 12.5% ​​($ 1,000,000 / USD 8,000,000 x 100%

Margin Trading
In principle forex trading system or exchange margin trading is a currency with another currency in units of contracts with guarantees for transactions (neccessary margin). That is, it does not involve physical trading of currencies, but only a score. Thus, investors do not have to put up capital amount of the transaction physical action.

For Example:

The market price of GBP 1 = USD 1.8850
Buy: USD 10,000 (1 lot)
The transaction value: USD 18.850 (EUR 10.000 x GBP 1.8850)
Initial margin: 1%
Needed fund: USD 100 (1% x USD 10,000)

When the market price of GBP 1 = USD 1.8950
Sell: USD 10,000 (1 lot)
Obtained results USD 18.950 (EUR 10.000 x GBP 1.8950)
Advantages: USD 100 (USD 18.950 - USD 18.850)
Rate of return: 100% (USD 100 / USD 100 x 100%)

Description: to trade 1 lot simply by funding: $ 100, (not USD 10,000) with a contract value of USD 10,000 or USD 1,000 with a contract value of USD 100,000 as collateral for the transaction. With a trading system that is much greater. In the above cases reached 100%. Meanwhile, if the trading is done with physical systems, the rate of return is only 10% (USD 100 USD 10,000 x 100%).

This forex trading system.