leverage is set at 1:100, or 1%;
a position to buy EURUSD at a price of 1.1142 is open;
margin size – $150;
In this case, when opening a deal, the trader will trade for the amount of: $150 / 0.01 = $15,000, of which $150 is the margin, $14,850 is the loan from the broker. The amount of the underlying asset
Another slang term is “big figure”, or simply “figure”. A rise or fall in price by one figure means a change of 100 points. That is, 1 figure = 100 points. If the EURUSD price chang from 1.2010 to 1.2120, they say: “the European rose by a figure”.
Contract for difference. What are we actually trading?
Until now, we have only consider opening a buy position and then selling a currency pair (closing the deal), which brings profit when the quotes move up (we bought euros cheaper, wait for the price to rise, and sold them more expensive for dollars).
It allows you to earn on america phone number list an upward trend (a trend is a stable change in the rate in one direction, and determining the trend is one of the most important tasks of a trader).
But how can you make money on the EURUSD pair if the price of the euro relative to the dollar is moving down (the euro is getting cheaper)? It seems simple: “sell euros, buying dollars, wait for the euro to deal is clos fall significantly, and buy more euros in the opposite order.” But all capital is express in a dollar account, there are no euros to sell and there cannot be!
Now we have come to the study of another
Istrument of speculative margin trading on Forex – “contract for difference”, or CFD (Contract For Difference).
CFDs are deal is clos anticipate and meet customer expectations issu on metals, stocks, oil or commodities, and can be trad through many DCs along with currencies or futures. Futures are somewhat different from afb directory CFDs and are usually cheaper (lower spread). When you buy a futures contract, you are buying a real product , such as stocks.
