FOREX (BELAJAR : PART 1)

Posted on 10 October 2008. Filed under: Banking, Finance, FOREX, HYIP, Pelaburan, Perbankkan | Tags: , |

Introduction   | 


SELLING USD/JPY Contract

A USD/ JPY contract consists of 100,000 USD and well is quoted with spread of 5 points (and minimum quote fluctuation of 0.01) margin requirement is $ 1000 per contract.

A client believes that the US Dollar is overvalued and will weaken against the Japanese Yen. To exploit the situation the client intends to sell USDJPY.

USDJPY is quoted at 117.30/35. The client sells (5 ) lots at 117.30. This requires a total deposit of $5,000. The client requires a minimum deposit of $1,000 for each position.

The US Dollar does in turn weaken dramatically against the Japanese Yen and prices therefore fall to 116.25/30. The client reacts to the news by closing his position he therefore BUYS (5) lots of USDJPY at 116.30. The client has made exactly 100 points. (117.30-116.30).

If the client SOLD USD/ JPY at 117.30 and bought back at 116.30 then the 1.00 profit will be represented in US Dollars as ( 117.30 – 116.30 ) * 100,000 / 116.30 = $ 859.85 per contract . This results in a total profit of $ 4299.25 (859.85 * 5 contracts).

1. Sell 5 USDJPY @ 117.30 – Buy 5 USDJPY @ 116.30 +100 points profit
2. (117.30 – 116.30) * 100,000 * 1) / 116.30 +$859.85 per contract
3. $859.85 * 5 (No. of Contracts) +$4,299.25 gross profit
*Commission charges are NOT included in the above calculations.  

Interest adjustments will only be enforced if the client holds positions into future trading days, rather than settling positions (with an equal and opposite position) intra day.

 
 
 
 

FOREX

Buying STERLING DOLLAR Contract

A GBP/USD contract consists of 100,000 GBP and well is quoted with spread of 5 points (and minimum quote fluctuation of 0.0001) margin requirement is $ 1500 per contract.

A client believes that the Sterling is undervalued and is due to rise in the future against the US Dollar. To exploit the situation the client intends to buy GBPUSD.

GBPUSD is quoted at 1.8940/45. The client buys 5 lots at 1.8945. This requires a total deposit of $7,500. The client requires a minimum deposit of $1,500 for each position.

GBPUSD prices fall to 1.8900/05. The client reacts to the news by closing his losing position; he therefore sells 5 lots of GBPUSD at 1.8900. Therefore the client has lost 0.0045, or 45 points (1.8945 – 1.8900).

If the client BOUGHT at 1.8945 and SOLD back at 1.8900, then the 0.0045 loss will be represented in US Dollars as: (1.8900 – 1.8945) * 1 * 100,000 = – $450 per contract. This results in a total loss of $2,250 ($450 * 5 contracts).

1. Buy 5 lots GBPUSD @ 1.8945 – Sell 5 lots GBPUSD @ 1.8900 – 0.0045
2. (1.8945 – 1.8900) * 1 *100,000 = – $450 – $450 per contract
3. -$450 * 5 (No. of contracts) = -$2,250 $2,250 gross loss
*Commission charges are NOT included in the above calculations.  

Interest adjustments will only be enforced if the client holds positions into future trading days, rather than settling positions (with an equal and opposite position) intra day.

Summer Daylight Saving Time (GMT)
PRODUCT SYMBOL TRADING HOURS
(MON-THU)
TRADING HOURS
(FRI)
CURRENCIES      
EURO VS US DOLLAR EURUSD 0000-2400 0000-1900
US DOLLAR VS JAPANESE YEN USDJPY 0000-2400 0000-1900
GREAT BRITISH POUND VS US DOLLAR GBPUSD 0000-2400 0000-1900
US DOLLAR VS SWISS FRANC USDCHF 0000-2400 0000-1900
AUSTRALIAN DOLLAR VS US DOLLAR AUDUSD 0000-2400 0000-1900
US DOLLAR VS CANADIAN DOLLAR USDCAD 0000-2400 0000-1900
CURRENCY CROSSES      
EURO VS GREAT BRITISH POUND EURGBP 0000-2400 0000-1900
EURO VS JAPANESE YEN EURJPY 0000-2400 0000-1900
EURO VS SWISS FRANC EURCHF 0000-2400 0000-1900
US DOLLAR INDEX   0000-2400 0000-1900
 
Standard Time (GMT)
PRODUCT SYMBOL TRADING HOURS
(MON-THU)
TRADING HOURS
(FRI)
CURRENCIES      
EURO VS US DOLLAR EURUSD 0000-2400 0000-2000
US DOLLAR VS JAPANESE YEN USDJPY 0000-2400 0000-2000
GREAT BRITISH POUND VS US DOLLAR GBPUSD 0000-2400 0000-2000
US DOLLAR VS SWISS FRANC USDCHF 0000-2400 0000-2000
AUSTRALIAN DOLLAR VS US DOLLAR AUDUSD 0000-2400 0000-2000
US DOLLAR VS CANADIAN DOLLAR USDCAD 0000-2400 0000-2000
CURRENCY CROSSES      
EURO VS GREAT BRITISH POUND EURGBP 0000-2400 0000-2000
EURO VS JAPANESE YEN EURJPY 0000-2400 0000-2000
EURO VS SWISS FRANC EURCHF 0000-2400 0000-2000
US DOLLAR INDEX   0000-2400 0000-1900

*The terms may change depending on the market situation. Please refer to our announcement or call to our dealing room for most updated information.
The cut off time for all Finance Fees calculations, and also generating statements, is set for all our products to 20:30 GMT – UK Summer Time (21:30 GMT – UK Winter Time). It means that all orders executed before the cut-off time will appear on todays statement. All orders executed after the cut-off time will be for next trading day. Please note that the closing times of our products are unaffected by this

a. Price Limits

No Price Limits on forex trading.

 
 


b. Profit and Loss Calculation

Profit and Loss in the Quote Currency (floating and realized profit/loss converted to US$): (1)
US Dollar/Japanese Yen (USDJPY), US Dollar/Swiss Franc (USDCHF), US Dollar Canadian (USDCAD)

((Sell Price – Buy Price) * Contract Size * Number Of Contracts)/Closing Price = Profit/Loss in US$

Profit and Loss in US$: (2)
Euro/US Dollar (EURUSD), British Pound/US Dollar (GBPUSD), Australian Dollar/US Dollar (AUDUSD)

(Selling Price – Buying Price) * Contract Size * Number Of Contracts = Profit/Loss in US$

*Commission charges are NOT included in the above calculations.

 
 


c. Financial Fee Calculation

Interest Calculation : (1)
Dollar/Yen (USDJPY), Dollar/Swiss (USDCHF), Dollar/Canadian (USDCAD)

((Contract Size * Number of Contracts * Interest Rate) / 360) * Number of Days = US$ Interest Fee

Interest Calculation : (2)
Euro/US Dollar (EURUSD), British Pound/US Dollar (GBPUSD), Australian Dollar/US Dollar (AUDUSD)

((Opening Price * Contract Size * Number of Contracts * Interest Rate) / 360) * Number of Days = US$ Interest Fee

Storage Fee Calculation: (3)
Storage Fee Rate * No. of Days * No. of Contracts = Storage Fee

 
 

*The terms may change depending on the market situation. Please refer to our announcement or call to our dealing room for most updated information.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Why Forex?

Advantage trading Forex

The forex trading market is an international market in which money is bought and sold freely and with no outside intervention. The prices of one currency against the other is decided solely by the participants of the market, by the laws of supply and demand. In this sense the forex market is indeed perfect in that it is a completely free market. It is also a relatively safe market, since, if anyone would want to manipulate the market or corner it, they would have to operate with tens of millions of dollars, which would be absurd.

The forex market has several advantages, which make it an ideal trading market for many people who do or do not have any knowledge of other markets. It takes only a short tutorial to have you playing like a pro. In addition, the forex market is fast. The prices can go up and down several times a day, and there is no end to the combinations that you can get. In addition, in time, with the proper training, you can become a professional Forex trader and even help other people come into the exciting world of Forex. What is best of all is that the Forex trading market is today the biggest market in the world, and there is no end to the number of trades and transactions that you can make.

Advantage of the Online Forex Spot Transactions

The Forex spot market has a huge advantage because after you see a price of a certain currency on your computer screen, you can immediately buy or sell that currency and get the current price for your trade. This gives you a spot on connection to the online Forex market, and you are sure that you are not missing anything, because it’s real time.

The fact that the online Forex spot market is concurrent, allows for the many trades to take place each day, and eventually is one of the reasons why the online Forex market is a very quick option to make money. Unlike the regular stock market, the Forex market is much more dynamic, so you don’t have to sit and wait for changes in your stock. You can view your currency on the spot, and if you don’t like it from one minute to the next, you can go and sell it immediately and not suffer any unnecessary losses.

Accordingly, once you have noticed that the currency you invested in has risen enough, and is saturated, you can decide to sell it and reap the profits. The Forex spot market is seen in it’s real time glory through the charts offered by technical analysis, so you can view the dynamics by yourself.

sources : HY Markets.

Ps : SORRY BELUM ADA MASA NAK TRANSLATE NANTILAH KALAU SENANG AKU TRANSLATE ATAU CARI YANG DALAM BAHASA MELAYU PUNYA.

ADA SESIAPA YANG NAK KONGSI ILMU BAGILAH KOMEN, THANKS…

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