- What is The Effect of Forex Leverage?
The leverage tool can also be used as a credit to your organization. In order to conduct this market transaction, you must first select a brokerage company and open a transaction account. Your brokerage institution will provide you with credit for your use in your transactions. Market-wide 50: 1, 100: 1 or 200: 1 is offered as a lift. This means that you will be able to trade between 1000 USD with 20 USD (50: 1). In this way, you can profit from fluctuations in the foreign exchange market. The most common market is the foreign exchange market that has higher leverage.
- What is The Islamic Forex Account?
According to Islam religion, interest is considered as illicit. The accounts in accordance with Islam are the types of accounts whose interest rate differences (swap, rollover fees) are not reflected. As you will not pay interest for your positions, you cannot get interest income.
Parities on Forex Market
- What is the Method for Specifying Values of the Parities?
First of all, I would like to remind you that this market is open 24 hours a day depending on the return of the world. The relationship between the currencies is determined by both economic and political factors. There are many factors that can affect the progress of this market; interest rates, inflation data, political and social events. In addition, governments can play an active role in this market in order to influence the value of their currencies. In addition, governments can play an active role in this market in order to influence the value of their currencies. Although central banks affect the market, the size of the existing volume may affect the results of the interventions. No power alone can carry this market anywhere.
- What are the Forex Terms Such as Spread, Pip and Swap in Forex Trading?
With your entry into this market, you will hear many new terms. Therefore, you should obtain Forex dictionary.
Spread: Exchange rates are indicated together with purchase price (bid) and sales prices (ask or offer). The difference between the purchase price and the selling price is called “spread”. Also it can be identified the difference between the two contract prices in long-term transactions.
In the option market, it is the position that consists of two different contracts and the profit of each contract is moving in the opposite direction. There are two different contracts, and if prices move in a certain direction, one of the position’s feet is damaged while the other is profit (or vice versa). A position in this way is taken in the hope of limiting the risks and making a profit from the change in the price relationship between the two feet.
Pip: It is the term used for the slightest movement that a currency exchange rate can make in the foreign exchange market. 0.0001 or 0.01 steps according to parities. For example, for EUR / USD, 0.0001 is used.
Swap: Swap is the transportation cost that is acting as a plus or minutes to your account according to the difference between the interests the currency pair in the Forex market.
Earnings and Losses in Forex Market
- What is the Most Successful Forex Risk Management?
There are many ways to avoid high risk, but the most important of these is that you do not open big positions from your principal, also you should stop loss and use limit orders. You can increase your earning potential by using the opportunities provided to you. Forex risk management training articles can show you the way.
- Is It Possible to Gain in the Forex Market?
Your earnings from the Forex market are unrestricted. The fact that a large number of intermediary institutions offer high leverage means that you can make a few hundred dollars and thousands of dollars. Some medium-sized institutions provide huge lifts of up to 500: 1. On the other hand, the subject of the leverage can work against you in your favor. For this reason, licensed vehicle companies provide for a maximum of 100: 1 lift with Forex regulations.
- Is It an Expensive Way to Invest in The Forex Market?
In fact, this is a matter of your style. Unlike other markets, you can also perform very small transactions in the Forex market. Most intermediaries offer the institution 100: 1, which means that you can only use $ 5 for a $ 500 transaction.
- What is The Forex Strategy?
Unfortunately, there is no single answer to this question. Nevertheless, you should not forget that everything is discipline and knowledge. As a result, the strategy that you will use is the biggest factor that will eliminate your trading in the foreign exchange market. You can take generalized market strategies as a source for yourself and tailor them to your style and psychology. It is important that you follow the rules you have determined (even if you win or lose). If an undisciplined investor finds the best strategy in the world (he will act according to his own system instead of the system), he cannot succeed.
- How to Choose Intermediary Institution?
Choosing the intermediary institution that will make your transactions in this market comes at the top of the most critical issues. That’s why you have to study well. There are many organizations around the world and the broker that the investors think about opening an account sells the research in a good way.
- What are The Requirements for the Forex Broker?
There are many things you need to review. For example; customer services, transaction platforms, scales applied to parities (spread, trading and sales), provided resources. Your answer to your questions will lead to a thorough research process. You can start your research by reading the research reports.
- How Can I Learn Whether the Agency is Trustworthy?
The enormity of the market brings with it the deceptions and you have to do the researches necessary to protect yourself from such organizations. If you start with the review reports, then we recommend you to explore the experiences of the people who have opened an account with that agency.