Sections account

When you decide to trade in the international currency market will look for a brokerage firm that allows trading currencies on a margin and we will talk about the most important things that you should ask about before you open an account with a brokerage firm.
And when you choose one of them .. You will need to correspondent several times to fill the subscription model and determine the type of account you want to open it whether it is a regular account Standard account or a mini account Mini account, and after you have finished the registration procedure is in any case a very simplified you will be sent the company an e-mail telling you consent for your registration and you become one of its customers.
Some brokerage firms recently became combine the two types of accounts in a single account is sometimes called the account universal Universal account where you can buy a lot of miniature or unusual from the same account as you can combine them
For example, you can buy 2.3 lot and this means that you buy 2 Lott normal and 3 mini Lott in a single package
In companies that separate between the two types of regular and mini accounts you can not do that either in this comprehensive account possible
This became a common type of accounts recently to give him the shops of high flexibility
Many brokerage firms whose titles mentioned in Page available sources of this type of account which type is best in our opinion

 After that determines the type of account and your application is accepted company then will ask you to send the amount you want to open your account.
Let's say that you choose to start at $ 2000 $ ..
Now after the account is opened and sent money would balance = $ 2,000.
Valrshehad: is the amount in the account before entering into any process before opening deal.
But when you open a deal to buy or sell a currency account will be divided into four sections:
Balance Balance.
Used Margin Used margin.
Margin Usable margin.
Your current balance Equity.
We will explain these sections in detail
Balance Balance:
 Is the amount in your account before you open the package.
Used Margin Used margin:
 Is the amount that is deducted token redeemer and this amount depends on the quality and conditions of the company account that deals with it in terms of the percentage multiplier provided by this company.
For example: if we assume that you have opened a regular account standard with a brokerage firm that although this company deducted $ 500 from your return each lot you buy or sell any currency, it means that if I bought a lot of euros will be deducted $ 500 from your token Recovered If we assume that your balance before entering into this transaction was $ 2,000 will be left you $ 1,500, even if you sell 2 lots yen will be charged $ 1,000 from your account and left you $ 1,000 of your balance.
As you know, this amount recovered will be returned to your account immediately after the closing of the transaction, regardless of the outcome of the transaction.
Used margin is calculated by the following equation:
Used margin = margin determined by the company for each lot * Number of croaker
Margin Usable margin:
 Which is the amount left in your account after deducting used margin is the maximum amount you can lose in the deal.
The margin is calculated user according to the following equation:
Margin = Equity - Margin user
For by the former hypothesis when you buy 1 Lott euro will be a $ 500 discount margin user and be available margin in front of you
Margin = 2000 - 500 = $ 1,500
Which is the maximum amount you can afford to lose in this deal, and arrived lost on this deal for $ 1500 you will receive a margin call Margin call and if you do not add more money to your account will be closed process by the company without waiting for you to order.
Current Balance Equity:
The actual amount in your account if you close the deal at the current price.
As you know when you buy or sell a currency will become influenced by the movement of the price of this currency in the market, you are a buyer of the coin Sémk to rise currency every point of rising currency win $ 10 every point down the price of the currency for the purchase price you lose $ 10, and vice versa For sale.
The current balance Equity monitors in front of you what is happening to the deal by the current price of the currency.
For example: if we assume you bought £ 1 lot on the assumption that the pound will rise after a while, even if we assume that the pound rose 20 points, you'll see that the actual balance has increased $ 200 over the balance before entering into any transaction if you close the deal at this moment would be balance $ 2,200
Thus, the current balance reflects the status of your account on the basis of current market price to be fully aware of everything related to your account.
The current account balance can by the following equation:
Current Balance = current balance + floating profit or loss floating
If we assume that your balance before entering into a transaction = $ 5,000
Then you purchase a lot of currency and the price of the currency so you Rabah by the current price of $ 500, a floating profit because you did not actually close the deal.
Current balance will be = 5000 + 500 = $ 5,500
Tells you if you close the deal now and the current price would balance $ 5,500
If we assume that the price of the currency after that I bought has dropped so you loser by Current price $ 300 a floating loss because you did not actually close the deal.
Current balance will be = 5000 + (-300) = 4700 $
Any tells you To Oukmt close the deal now and the current price will balance 4700 $
The current balance varies depending on change in the exchange rate either a profit or a loss.
Whenever the price changes even one point will show you the current balance Equity kilometers will be in your account if you close the actual deal at this moment and floating bearing as profit or loss floating and who Satholan to a real profit or loss if you actually close the deal at the moment.
The purpose of this division for your account is giving you a clear picture of the immediate status of your account saves you do the calculations yourself and be this image Instant-go by price changes in the market.
When the transaction closes really turns the current balance to balance the company. Where you can drag it or use it in other trading transactions.

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The nature of the movement of prices

The nature of the movement of prices
Of the things that will immediately grasp is that the nature of the movement of exchange rates is gradually and not continuous.
This applies to the movement of currency rates as it applies to the movement of stock and commodity prices and all that is traded in the financial markets.
What do you mean by that?
By that we mean that even if the price of a currency will rise 100 points in 5 hours, for example, it will not rise an hour behind the hour and minute behind minutes, but the height Satakllah lot of dips!!
The but Wholesale rise.

Even if true we expected the price movement may be as follows:
Price now .9800 EUR / USD =


Any dropped 10 points from the first price consists bris floating now = $ 100.



Thus price movement continues in the low and high hour behind Wholesale hour but rises to be up to what we expected, was far beyond our expectations.
As you can see it is like to climb AC!!
And that is the reason for headaches!!
When you open a deal often find yourself a loser and then become a winner and then return a loser and then suddenly turn into Rabah Kebir!!!
Therefore Many beginners feel dismayed when the price starts to decline Fajova of that price will continue to decline may decide to sell at a loss and close the deal quickly so to Atzdad their losses. And thus become a real loss to the loss because they have completed the deal and switched them off.
But may return the price to rise and become winners after they were losers.
But after it is too late has closed the deal at a loss if they had little patience for floating turned loss to profit and then managed to close the deal winners rather than Aglqoha losers!!
The issue is all dependent on your confidence in your prospect you are confident of the safety of your expectations will not be afraid to nothing if the price fell a bit, because you are confident that he will return to rise shortly after.
Bet this will be based on the analysis of price movement using technical analysis techniques and news, which we will talk about later.
It is like a game of biting fingers!!
Win able to develop its capabilities and pursue analysis and risk management techniques ..
And win with strong nerves and calm psychological and self-confidence ...
This requires experience and long practice and see .. It is worth the effort it ..
Millions in front of you and all you have to do is to learn how to make as much of them as possible ..!!
Corrective Movement Retracement or Correction
When following up the movement of exchange rates often you will hear about that "the Fulani moving currency corrective movement."
And this is the nature of price movement natures, what is the corrective movement?
Is the same as the gradual nature of the currency movement that we talked about, but often within a wider time frame.
For example: if it was destined for the euro to rise within seven days 820 points, for example, the rise in the following form:
On the first day 180 points.
In the second on 150 points.
In the third on 240 points.
In the fourth day the price drops 120 points.
In the fifth day the price drops 50 points.
On the sixth day the price rises 200 points.
In the seventh day rise 220 points.
As you can see, the total Artfh euro from the first day of the seventh day, the equivalent of 820 points. He was in high daily with the exception of the fourth day and the fifth day where the price fell two somewhat before returning to rise later.
Called the price movement in the fourth and fifth days the correct movement of the price Retracement.
A movement to be in the opposite direction of price movement.
You can be perceived as if the market takes a break breath after it has moved strongly in one direction for a period of time to be completed after the price to walk towards him again.
Of course, this break is not a requirement to be on the fourth day or fifth may be at any time and no one knows exactly when can occur, but when the price moves in one direction for a period of time and strongly becomes expected a correction in the price and the more price continues to walk in his direction without stopping the more likely near a corrective movement.
Why is it important to know this truth about the price movement?
When you know this truth and see that the price of a currency continues to rise for several days might consider buying this currency, but when you see that this rise has been severe and rapid and sustained better to wait a bit before buying because it expected a correction in the price of the currency to go back and go down a bit before re- rise, it would be smart to buy the currency at that moment because you will buy more at a low price.
The opposite is true in the currency goes down rapidly and continuously and continuously where the correction will be Correction is somewhat rising currency to continue to fall again later.
At the current stage need not worry too much if you do not understand Helms on this page once you begin practice will understand it all and very clearly and you'll see for yourself how moving exchange rates and has reminded the nature of price movement here for your reference, by not more, you can not Mnfem meant so Flabos now will understand everything a little practice!.

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profit &loss and floating profit &loss

We have said before that you can not know whether you have won or lost as long as you did not close the deal.
When you open a deal buy Flaamkink currency to learn as a result of this transaction until you close the deal and sold.
For example: Oukmt buy 1 Lott pounds price on the basis that you expect a rally.
After buying him began the pound to decline 10 points instead of rising.
You at this moment be losing $ 100 on the assumption that the value of the point = $ 10.
In other words you if you sell at the moment and at the current market price, which at least from the purchase price of LE 10 points will be lost = $ 100.
Suppose the price dropped 30 points of the purchase price.
You at this moment be losing $ 300.
But it's not a real loss.
As long as you did not close the deal did not sell croaker that you have are called bris floating loss Floating loss.
Any loss unresolved after as long as you did not sell fairy Maldik.
It will not turn into a real loss only after you actually sell.
And as long as you did not sell Everything is possible, it has more than a low price to 60, 70, 80 points, price may be due to the rise and sudden.
If we assume that you are after that I bought a lot of Fairy price rose 10 points of the purchase price to him.
This means that you Rabah at the moment $ 100 if you decide to sell at the current market price in excess of the purchase price by 10 points will be your profit = $ 100
If the price rises 50 points for the purchase price.
You will be a winner in this moment $ 500 if you decide selling at the current price.
But it is not a real profit.
As long as you did not close the deal did not sell croaker who have called the profit gain floating Floating profit.
It will turn into a real profit only after you actually sell.
As long as you did not sell Everything is possible, it has more than price rises to 70, 80, 100 points, and return the price to drop suddenly.
Thus, the deal only resolved when closed and not before.

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Enter and exit point

We say that the point of entry is 1.5245 and the exit point is 1.5280.


We say that the point of entry is 123.52, and the exit point is 123.70.point Login Enter point: is the price at which it opens the deal.
The exit point Exit point: is the price at which the deal closed.
Before you open a deal will not care about high or low currency rates.
But after the deal opens what Hraoua or selling the more you care about is the currency ..!!
Because by the price movement will be determined if you are a winner or a loser.
Therefore, we say that the price at which it opens the deal called the point of entry, because you are so be logged on to the market affected by what goes on in it.
Therefore we say that the price at which it closes the deal called the exit point, because you then be out of the market and will not care about then the direction of the price movement.

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Opening and closing of the deal

Opening and closing of the deal
You know you are in the currency market you can get a profit from trading, regardless of whether the market is bullish or bearish currency.
The currency that is expected to rise will buy at the low price and wait for the price to go up to sell at the high price and you get the difference as profit.
And the currency in which you expect to fall will begin selling the high price and wait for price to fall to re-purchase them at the low price and keep the difference as profit.
When you begin the process, whether selling or Hraoua say: You have opened the package Open position.
When you have finished the process selling or Hraoua say: you have closed the deal Close position.
And you'll begin to deal you will not be able to tell whether you've won or lost until the end of the deal.
For example: if we assume that you opened a deal - initiated - buy 1 lot euros on the basis of your expectations that the euro will rise.
After you buy the euro will not know whether you lose or gain even sell the euro, which have closed - end - deal.
 If I sold at a higher price than the purchase price be a winner if I sold at a lower price than the purchase price be a loser.
The deal, which begins purchase expire sell.
In terms of financial markets say:
The deal, which open to buy close the sale.
After closing the deal you know your profit or loss.
Similarly, if we assume that you opened a deal - initiated - to sell 1 lot euros on the basis of your expectations that the price of the euro will fall.
After selling the euro will not know whether you lose or gain even buy back the euro, which have closed - end - deal.
 If you have purchased at a lower price than the sale price be a winner if you purchased at a higher price than the selling price be a loser.
The deal, which start selling finished buying.
In terms of financial markets says:
The deal, which opens the sale closes purchase.
So you can understand opening and closing of the transaction as follows:
Fatah deal means the beginning of the process, whether they sell or buy currency currency.
And close the deal would mean the end of the process, whether they sell or buy currency currency.

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Daily interest Interest or Rollover

A form of income that you earn brokerage firms trading in the currency as a proxy for the services provided by you.
When you want to buy a lot of euros, for example, you buy this 100,000 euros Atdf, only $ 500 is deducted from your account temporarily margin user.
You will have a temporary amount of 100,000 euros is required to be returned to the company and will retain the full profit for yourself that I sold at a higher price but sold it at a lower price difference will be deducted from your account you will bear the entire loss.
If in fact, the brokerage firm gives you a temporary loan of 100,000 euros to bring it back in full.
In the international currency market be for a one-day loan.
When you buy Lott euro rate in the hope that it sells at a higher price they must sell this croaker on the same day to return the 100,000 euros for the company and retain full profit for yourself.
But what if the price of the euro did not rise on this day?
Do you sell at a loss?
It may be better for you to wait until the next day Perhaps the price of the euro rises and did not need to sell at a loss.
The to Ajrif in this day also!!
Another Feltentzer days and so on until the price rises, is this possible?
Yes possible .. But it will cost you some money.
How so?
We said that Almlbg you buy you a brokerage firm based on your request is a loan must be fully back in the same day, and if you want to wait for the next day will be required to pay interest on that amount, which is still locked up in your name.
Why?
For that you are still a barrier amount of 100,000 euros in your name if you have to end the deal for the company was able to lend to a customer someone else or put it in a bank and you get the benefit of every day.
This amount Vhdzk another day require you to pay daily interest on each lot retains more than 24 hours.
How much interest this everyday?
This differs from company to company, but the vast majority of companies get an amount ranging between $ 8 - $ 20 for each lot day in croaker who = 100,000 units of the base currency of any account normal Standard In croaker who = 10,000 units of the base currency of any mini Mini account is calculated the amount of $ 1 in interest per day for each lot.
Changed daily interest between now and then because it is calculated on the basis of certain no need to mention here. Also vary from one currency to another.
And will be through the workstation that you use in your business with the brokerage firm aware of the constant value of the daily interest that must be paid for all croaker currency purchase.
For example: if you have a regular account per croaker where = 100,000 units of the base currency and you have purchased or sold Lott euros and want to wait and not to close the deal for the next day you will be calculated to the amount of $ 10 per day until the end of the deal. But if you've bought or sold Lott Japanese Yen have you calculated the amount of $ 15 per day until the end of the deal.
The benefit varies depending on the currency value also vary from time to time. And will be aware of the value of the interest they will demand continuously. But generally to graduate from the border that we mentioned a while ago only rarely.
Of course if you buy a currency and then sold it on the same day will be charged interest you.
In most cases, the amount of interest is added after 5 pm EDT EST after 12 pm GMT.
What does that mean?
I mean, if you purchased 1 Lott euros, for example did not sell because the price is appropriate for you until 12 o'clock at night GMT interest will be calculated daily on the euro Lott and deducted after the completion of the transaction.
So Aisthab to enter the process at a time close to 12 o'clock at night GMT, because if passed 12 o'clock at night and there is a lot you do not sell it still locked up in your name daily interest costs.
This is worth mentioning that in the 12 pm GMT on Wednesday in particular are deducted interest for three days, if you're in on Wednesday you purchase Lott yen did not sell before 12 pm GMT, it will be deducted interest for three days of profit after the completion of the Deal or added to your loss ended the deal at a loss.
Why on Wednesday in particular?
Because it compensates on the weekend Saturday and Sunday.
As you can see, the daily interest is part of the cost of any deal you enter must be taken into account when the profit and loss account.
We said before that the profit and loss equation is as follows:
Profit or Loss = number of contracts (Lute) * difference in points * Point Value
In order to be placed daily interest into account, the profit and loss equation is as follows:
Profit or Loss = number of contracts (Lute) * difference in points * point value - the number of contracts (Lute) * number of days * daily interest.
 
 
This is the full and final equation for the profit and loss account and that they must save.
And reaffirm that the interest will not be calculated daily Just in case you did not finish the deal before 12 pm GMT.
Take the examples
Example 1


 Calculate your profit Okhsartk on the assumption that the value of the point = $ 6 and daily interest = $ 10 per lot.
The answer:
I daresay first points of difference equation francs.
Spread = ((sale price - purchase price) * 10000) * -1
            = ((1.4580 - 1.4520) * 10000) * -1 = -60 points loss.
Calculate the actual loss now, but you have not yet completed the process before 12 o'clock at night.
Profit Oalkhsarh = (number of contracts (Lute) * difference in points * point value) - (number of contracts (Lute) * number of days * daily interest).
                = (2 * -60 * 6) - (2 * 1 * 10 $) = 740 $
Bris is $ 720 on the deal added the $ 10 in interest per day per lot you purchased are accounted You Being did not end the deal only after 12 o'clock at night, even if you quit the deal before 12 o'clock at night one minute will count you interest, you remind that Psondrella?! !
Example 2


Calculate the profit or loss on the assumption that the value of the point = $ 10 and daily interest = $ 12 per lot
The answer:
I daresay first points of difference equation for the pound.
Spread = (sale price - purchase) * 10000
            = (1.5250 - 1.5185) * 10000 = 65 points profit.
Calculate the effective profit now, has passed 12 o'clock at night twice before ending the deal two days we will demand the benefits.
Profit Oalkhsarh = (number of contracts (Lute) * difference in points * point value) - (number of contracts (Lute) * number of days * daily interest).
                  = (3 * 65 * 10) - (3 * 2 * 12) = 1878 $
It was profit from the deal = $ 1950, but were deducted 72 $ interest on 3 lots for two days.
Example 3


Vahsb profit or loss on the assumption that the value of the point = $ 8 daily interest = 9.5 $ for each lot.
The answer:
I daresay first points of difference equation for Palin.
Spread = ((sale price - purchase price) * 100) * -1
            = ((123.81 - 124.23) * 100) * -1 = 42 points profit.
I daresay actual profit now, and where we finished the deal on the same day by 12 o'clock at night will be calculated daily benefits.
Profit Oalkhsarh = (number of contracts (Lute) * difference in points * point value) - (number of contracts (Lute) * number of days * daily interest).
                  = (1 * 42 * 8) - (1 * 0 * 9.5 $) = 336 $
 
Example 4


Vahsb profit or loss on the assumption that the value of the point = $ 10 and daily interest = $ 8 for each lot.
The answer:
I daresay first points of difference equation for the euro
Spread = (sale price - purchase) * 10000
               = (9850. - 9875.) * 10000 = - 25
Calculate the actual loss now, but it passed 12 o'clock at night on Wednesday, especially before ending the transaction will be charged interest for 3 days.
Profit Oalkhsarh = (number of contracts (Lute) * difference in points * point value) - (number of contracts (Lute) * number of days * daily interest).
                 = (2 * -25 * 10) - (2 * 3 * 8) = $ -548
It was lost on the deal of $ 500 interest has been calculated on the 2 lots for three days for the passage of 12 pm on Wednesday, which is the only day on which interest is calculated for three days in order to compensate on vacation Saturday and Sunday.

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The price difference between buying and selling:Spread

Which is the main source of income for brokerage firms.
Did you ever go to a money exchange shops to replace your local currency and get dollars, for example?
Suppose that you have a SR and I wanted to buy a $ two MEs What happens?
When you go to the money changers and ask him about the price of the dollar against the riyal will ask: buy or sell?
That is meant to know: Do you have a dollar and want to sell it and get a Real or have Real and want to buy the dollar?
If I asked him about the cases, it will tell you, for example:
Dollar against the Saudi riyal now: Sell: 3.65 buy: 3.50
What does that mean?
I mean, if you have Real and you want to buy dollars Vsepeek dollar that you pay 3.65 riyals.
But if you had a dollar and you want to buy Real will get for every dollar at 3.50 riyals.
Any Sepeek dollar at 3.65 riyals to the dollar.
And buy the dollar at a rate of 3.50 riyals obtained for every dollar.
May ask why there is a difference in price between the buying and selling?
This is because the difference is the interest earned by the cashier.
Why give you the dollar and the riyal takes you that did not benefit from it?
Will benefit from the dollar when buying from others at 3.50 riyals and sell it to others at 3.65 riyals.
It benefits if: 3.56 - 3.50 = .15 rials on every dollar sells for, and what he buys and sells large quantities of a lot of people would become such a slim edge large sum.
This is called the difference between the buying and selling price of a currency spread.
And brokerage firms to trade currency will deal with you as completely handles teller.
_ek Currency rate and buy from you at a slightly lower price and this difference is the profit.
So when you trade currencies, you will find that the price of any currency come in pairs: the price of the sale and purchase price.
For example: It would be the price of the euro against the dollar EUR / USD = .9500-9505
If you have euros and want to sell them and buy - you get - dollar, Vschtre you and pay you $ .9500.
But if you want to buy the euro and sell - pay - the dollar, you have to pay for every euro $ .9505.
A difference of $ .0005 will be the profit margin.
Called the purchase price of the coin ASK
Called the price you sell the coin BID
The method will be Offer ÔČíÉ Price thus:

                                                BID ASK
EUR / USD .9800 .9805
GBP / USD 1.5235 1.5240
USD / JPY 123.25 123.30
USD / CHF 1.4828 1.4833
Table (1)
What does that mean?
Price as you know: is the amount owed from the second currency for one unit of the base currency.
ASK: means they ask you to pay $ .9805 for one euro, ie it euro _ek at $ .9805
BID: means that it offers you the amount of $ .9800 to get you one euro, that is, they buy you the euro at a price of $ .9800.
If
ASK: is the price at which it will buy you the base currency and sell - pay - the second currency.
BID: is the price at which it sells you the base currency and buy - you get - the second currency.
Notes here that the difference between the sale price and the purchase price in each currency is 5 points.
This means that: SPREAD = 5 POINTS
If we assume that you bought 1,000 euros depending on the rates listed in the table (1) will pay $ 980.5 interview
If you have to sell the 1000 euros immediately you will not sell at the same price I bought it, but you'll get an interview on 980 $ and had thus lost .5 $.
This difference is fully benefit brokerage firm as interest teller.
Currency prices in constant change up and down but always there remains a five-point difference between the purchase price and the selling price, and this difference is fixed profit for the brokerage firm.
Take the examples:
Example 1
Suppose you looked at the panel prices in the workstation and found as follows:

                                     BID ASK
EUR / USD .9800 .9805


So what do you do?
The answer:
We expect the euro to rise it will be if we will have to buy euros to sell later at a high price.
Will price at which it will buy euro now is .9805 because the purchase price.
Where ASK is price at which it will buy the base currency and sell the second currency, and the base currency is the euro, always against the dollar.
If we will buy € 1 lot at .9805
If ratified expectations and the euro rose may look up to the plate in workstation prices after a period of time, you will find the price of the euro as follows:

                               BID ASK
EUR / USD .9870 .9875

You now have the euro and want to sell them at a higher price than the purchase price When you look at the price above, you will find that the sale price (ie the price at which to sell you) is .9870
Because BID is the price at which sells you the base currency and buy the second currency, and you have euros and want to sell, and the euro is always the base currency.
If you want to buy the euro, rather than to sell will buy at .9875 because the price at which it buys the base currency.
If you sell 1 lot euros which have at .9870 to order the company to sell when the price reaches this limit.
I bought 1 lot at .9805 and sold at .9870 and thus made a profit = 65 points profit.
That is, you won $ 650 if you trade in a regular account or $ 65 if you are trading in a mini account.
Example 2
Suppose you looked at the panel prices and yen found as follows:

                          BID ASK
USD / JPY 123.50 123.55

If you want to buy the yen now at any price will buy?
The answer:
Remember that ASK: is the price at which you buy in. base currency and sell the second currency.
      And BID: is the price at which you sell in. base currency and buy the second currency.
And always knew that the dollar is the base currency against the yen and the franc.
When you want to buy yen (second currency) and sell the dollar (base currency), the purchase price will be the bottom of the BID.
The purchase price will be is 123.50.
Does that cause you some confusion in understanding?!!
There is nothing wrong with you initially take the following general rule:
General rule
If you want to buy the euro or the pound take the ASK price.
If you want to sell the euro or the pound take rate BID.
 And on the contrary ..
If you want to buy the yen or the franc take price BID.
If you want to sell the yen or the franc takes the ASK price.

And some elastosis things will become very clear for you.
Take more examples:
Example 3:
Suppose that the franc on the plate prices as follows:

                              BID ASK
USD / CHF 1.4825 1.4830
They expected that the franc will rise 50 points in the future, what would you do?
The answer:
We expect that the franc will rise against the dollar any that the franc bullish market, if we will buy the franc at the current price in the hope of selling it later at a higher price.
When buying the Snstraeh franc rate BID because the price at which we sell the base currency and buy the second currency, and the second currency is CHF.
Will buy at 1.4825 franc.
Example 4:
Suppose that the price of the pound against the dollar now as follows:

                                BID ASK
GBP / USD 1.5235 1.5240
And predicted that the pound will fall 80 points, what will you do?
The answer:
We expect that the pound will fall against the dollar that Fairy bearish market, if we sell the pound at the current price in the hope that we buy it later at a lower price and keep the difference as profit.
When we want to sell Fairy now Senbaah at BID because the price at which we will sell the base currency, the pound, we will sell the pound at 1.5235.
Example 5:
Suppose that the price of the yen against the dollar on the price board Malata:

                              BID ASK
USD / JPY 122.08 122.13
And predicted that the yen will fall, what would you do?
The answer:
We expect that the yen will decline against the dollar, which means that the yen market bearish.
If we will sell the yen.
When we want sell yen Senbaah at ASK because the price at which we buy the base currency and sell the second currency, and the second currency is the yen.
We will sell the yen at 122.13.
As we mentioned that in all cases, no matter how prices have changed a fixed currency there is a difference between the sale price and the purchase price which is called SPREAD.
And vary among companies select the SPREAD Some of them are determined by 5 points and 4 points and 8 points.
In each case, the vast majority of brokerage firms have SPREAD has = 5 points.
Anjad justified to deal with being the SPREAD has more.
I also saw the price difference between buying and selling is the basis of income brokerage firms in the currency market, although I have found some difficulty in understanding what we explained the difference between the sale price and the purchase price, especially since there is a difference between the buy and sell currencies direct and indirect Vlatqlq, with some elastosis These concepts will become very clear for you and you do not need to return to this book later understood or applied.

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