Forex

The forex market allows you to buy and sell currencies against each other and speculate on the differences in exchange rates.

Making a transaction on the Forex Market is simple: the procedures are identical to that of any other market so switching to trading currencies is straightforward for most traders.

Lot - 100000 base currency. 1 lot of EURUSD = 100000 EUR. 1 lot of USDJPY = 100000 USD. 1 lot of GBRJPY = 100000 GBR.

For example, you buy EUR/USD at 1.4998. You sell 100000 EUR and buy $ 149980. Then you buy EURUSD at 1.4898. You buy 100000 EUR and sell 148980 USD. Calculate, -100000 EUR + 149980 USD + 100000 EUR - 148980 USD = 1000 USD - your profit.

Mini-lot = 0.1 lot, micro-lot = 0.01 lot.

Swap - charges for the position through the night. It may be positive (that is, added to the trading account) or negative (deducted from trading account) value. It depends on the difference in interest rates of countries whose currency we use to trade (pair).

For example, in EU the rate of 4.0 % and 3.0 % in USA. You open position on EUR / USD lot size of 1.0. To do this, you have to sell EUR 100000. So, you have to take them by 4.0 % per annum. By selling the euro, we buy dollars, which we can place a deposit of 3.0 % per annum. Your costs on the transaction: (4.0-3.0)% per annum, with the rate EUR / USD 1.5, it is 1500 dollars per year, or 4.11 dollars a day. If you selling pair EURUSD, you will gane a profit $ 4.11 a day. Reality, profit will be 4.11 - payment for broker.