Maalmqsod work on a margin?To be able to understand the mechanism of the introduction of margin, we easily we shall explain by an example of significant Serafguena all the timeSuppose you want to trade cars, so that you are buying a car, then you are selling in the market for a buyer at a higher price and how you do it?Will go to one of the agencies and large vehicles will choose one of the cars that you think you will find the application in the market to assume that the price of the car when the car is the agency $ 10,000Every Maalik is that the availability of this amount and you pay for agency vehicles and thus the owner of a car worth $ 10,000 ..Since the purpose of buying the car is traded, you will go to the market and hoping that the car was sold at a higher price than the price you bought it.Now suppose you went to the market and found that the demand for high quality car and there are a lot of people would like to buy .. then will be displaying the car at $ 12,000, for example ..If I sold this price will be your net profit from trading in this car $ 2000But what if I went to the market and found that the demand for the quality of your car is weak and that there is no one wishes to purchase price of $ 10,000 and the maximum price one can buy a car is $ 8000?What does that mean?Simply means that if you sell at this price, the trading in your loss of this car would be $ 2000It's a clear process is much work every day .. and you can do so you also.But wait ..!!To the previous operation, you have to be the property of the amount of $ 10,000 from the outset to be able to buy a car buy it .. This is your capital in a trade.If you were not have this amount will not be able Mnschera the car and therefore would not be able to sell in the market ..This means that in order to be able to trade the car must be the property of the whole value of the car first ..Is there a way to do this process because without that you have $ 10,000?Yes there is a way .. This is a method of work margin Trading in margin basisHow so?Why Oukal you the owner of agency cars: "If you would like to buy a car to trade it does not need to pay me $ 10,000 full value of all that is required of you is to pay me to deposit the value of only $ 1000 and I'm going to book the car in your name until you have the opportunity to sell in the market and then return the value of the rest of me "It's a wonderful opportunity and no doubt ..Note that we've said here, "booking" the car in your name .. Any agency that the car will not give you the car but will actually booked in your name and make it at your disposal for the purpose of trading them so that you can sell at a price that you like and if you already owned.But why Atatini car?Because you did not pay only a tenth of their value .. just gave you the car has become accustomed to take them ..!!So it is Atattiyk detain the car, but your name, but the remainder of their ..So how can I trade in?Well .. when you know that you have a car reserved for trading in your name and that you can sell at a price that you like it you can now go to the market and search for a buyer at a higher price than the purchase price of the car.Let's say you found a buyer in the market for a car at $ 12,000 and then order an agency to sell the car buyer car reserved in your name at $ 12,000.Buyer will pay the $ 12,000 car and pick it up ..The agency will deduct the value of the car car is $ 10,000 and will respond to you your deposit you paid a $ 1,000 plus full profit is $ 2000Since you originally no intention of trading but will not drive it that differentiates you actually get the car or do they remain with the agency cars ..It is important that you had the opportunity to trade a commodity worth ten times the amount you paid and got a full profit and if you have the item already.In this way ensures agency access to cars full value of the car and you also get the full profit.In this way everyone is happy ..!!In the previous example as soon as your payment for the amount of $ 1000 has been able to get any profit of $ 2000 200% of your capital paid-up just because you found the company to allow you to pay a fraction of the value of the item you wish to be traded.It's a great opportunity right?But how did this happen?This happened because the agency allowed the cars you the opportunity to double your capital leverage paid a $ 1,000 to ten times as any to $ 10,000 and thus allowing you the opportunity to trade in a commodity worth ten times the actual value of the largest paid-up your capital.This is called the doubling of the capital or leverage Leverage.When you get the possibility to double your capital ten times means that you return for your payment - your investment - the amount of what it is you have the opportunity to trade a commodity worth more than ten times the value of your capital.When you get the possibility to double your capital to one hundred times the sense that you return for your payment of the amount of what it is you will have the opportunity to trade a commodity worth more than one hundred times the value of your capital.And you will get full profit and if you have the item already.Ie if we apply it to the previous example it is against the payment of the amount of $ 10,000 you will have the opportunity to trade cars worth $ 100,000 a dozen cars and one time .. If you win on each car the amount of $ 2000 means that the profit on the transaction is complete (2000 * 10 = $ 20,000) will get them in full and all the profit return on investment to the amount of $ 10,000 refundable deposit will return to you in the end ..!!Is this reasonable?Yes, reasonable .. This is what happens every day hundreds of millions in financial markets and margin trading system.Is now learned how to make millions?!To go back again to our previous example:At the outset we have the regular way trading was as follows:You make a purchase through the payment of the full value of the car.You go to the market and offer your item for sale.You sell.If you sell your car at a higher price than the purchase price to be profitable, but I sold it at a lower price than the purchase price be the loser.But when you trading in a margin that is what happened:You buy from the dealership and you double your capital ten times so that you pay the $ 1000 refundable deposit and you do so the owner of the vehicle temporarily until they are sold and re-value.When you pay $ 1000 and gave you the possibility of trading agency car car worth $ 10,000 that is, they Mkntek trading of ten times your capital.I went to the market and offered your item owned by temporarily for sale.You sell and the agency that ordered the cars to sell the car owned by the temporarily - and they already have in your name - to a buyer who found him in the market at a price that you specify.The agency vehicles and the implementation of it has to sell the car to the buyer, and then deducted the original value - which Batk by car - the $ 10,000 and gave the rest as profit and net you re-deposit you paid at the beginning.Note here ..That when the agency cars to double your capital ten times, they did so to allow you the opportunity to trade the value of a car (items) worth more than 10 times the value of what you paid that you pay the rest of the value of the car after you sell, that is that when you paid $ 1000 and become an owner temporarily for the car you are indebted to the Agency the amount of $ 10,000 car until you pay full value of the car, as the amount of $ 1000 which is only paid a deposit refundable upon payment.If you order and the agency that sells auto car at $ 12,000, they will be implemented and it will deduct the $ 10,000 value of the car and will bring you first deposit you paid plus your profit is $ 2000 in a trade.But what if I sold the car at a lower price than the purchase price?What if I sold it at $ 8000 USD for example?Will be required to complete the value of your car from your pocket, that will be required to pay $ 2000 in order to complete the value of the vehicle and then recover your deposit paid in advance.Just as the agency does not auto Charkk profit is not Charkk loss as well.Whether you win or lose is not only asking you to pay the full value of the car after the sale, if ordered to sell the car at a higher price than the purchase price will be implemented and it deducted the value of the vehicle and then you are your deposit plus full profit.If ordered to sell the car for less than the purchase price, it will be implemented and also to pay Stelzmk of your own pocket to complete the full value of the car, and this amount is your loss in this deal.In the previous example, when I sold the car at $ 8000 USD it is you need to add the amount of pocket $ 2000 to become the amount of $ 10,000 and paid off the car and told you have to bear the loss and not the agency vehicles, and in all cases will be refunded your deposit paid in advance.But why not deceive Agency cars?!Well: When we started dealing with agency vehicles that allow us to double the capital ten times what we paid is the amount of $ 1000, and when ordered agency cars to sell the car at $ 12,000 - after we found her on the buyer at this price - the Agency to sell the car at a price that we set and we returned the deposit plus the full profit.If: If you ordered the agency to sell the car at $ 8000 will not add anything from our pocket all that the agency car is $ 1000, so the agency will make cars that bear the loss ..So you will not pay anything ... Nohrb ..!!So you do not really happen, dealing with the agency in a manner margin cars have a special system that we can Nkhtzareth one sentence:Must deposit the maximum amount that can be lost in the deal in advance with the agency cars.How so?In order to allow you the opportunity to margin trading system which allows you to work most of your size ten times, the agency will demand the following cars:To open an account and have deposited the amount of $ 3000, for example.This amount will be deposited in advance with the agency cars.Agency vehicles will return to double your capital ten times leverage, and will allow you to trade a commodity exchange to pay only a token worth one tenth refundable only.Will you buy a car, since it does not need to pay only one tenth their value, and since the value of $ 10,000 it does not need to pay only $ 1000 refundable deposit.When you buy the car will be deducted from your deposit any will deduct $ 1000 Snsmi this "used margin used margin".Will remain in your account is now $ 2000 is not used shall refer as "the margin available usable margin". Will be nearly as is the maximum amount you can lose the deal.And so ensure that you are the car agency who will bear the loss that occurred and are not, and will not be afraid to escape because there have in your account the amount you can afford to lose.When you order the agency to sell the car the car amount of $ 12,000 the agency will implement it and the car will sell $ 10,000 and deducted the value of the car and would your deposit plus full profit and will it add to your account with bringing your account has = $ 5,000.But if he ordered the agency cars to sell the car at a lower price than the purchase price for the transfer of $ 8000 will and agency vehicles to the implementation of it and will sell the car and then deducted $ 2,000 from your account have to complete the rest of the price of the car, and then will return you to your deposit to your account and will become your account with only $ 1000.Do you know why this method is called the work "margin trading"?This is because it is dealing and trading on the margin of profit and loss in trading commodity is no need to pay the full value, where the added profit from the deal for the shops and deduct the loss of margin account stores.What do you understand as well?Understand that you can not in any deal to lose more than the amount in your account with the company that allows you to margin trading system.To illustrate this important point more .. Continued with us in the following pages.
Used margin and the margin available
Used and Usable margin
When you open an account with the company to allow trading on a margin which will be deposited in advance a fixed amount would still be without prejudice to the amount you decide to buy a car, that is, to decide to enter into a deal, then your account will be divided into two parts:Used margin used margin: a deposit which will be deducted in advance, a refundable deposit will be returned to your account after the sale of the car, whether sold at a profit or a loss.Margin usable margin: which is the amount remaining in your account after the deduction of the margin of the user, this amount is the maximum amount allowed in you losing the deal.How to calculate the margin used?We do not want to take care of a lot in how to calculate the margin on your own user often will not need them where you will determine in advance the amount that the company will be deducted from your account as a token for every unit of the commodity. In the previous example and the agency will tell you it is auto deducted $ 1000 from your user margin for each car purchase. If I bought two cars will be deducted from your $ 2000 margin user and your account will remain in the $ 1000 margin is available.In spite of that the company will deal with it Stgnek the need for a margin account used only for yourself that it would be very useful to learn how to do this yourself.Can calculate the margin of the user who will be deducted as a token of any commodity by any company with the following equation:Used margin = value of the item purchased with a full / double ratioIn the previous example: the value of the car full = $ 10,000 and the percentage multiplier that allows the company is 10 times, meaning that doubled the company's capital you 10 times, so the margin St_khasmh Agency:Used margin = value of the item a full / double ratio= 10.000 / 10 = $ 1,000Had I thought to buy two cars instead of the car will be the margin of the user who will be deducted from your account:Used margin = 20.000 / 1000 = $ 2000In the global market deal that will allow brokerage firms to trade on a margin of various types of goods for each company a certain quality of goods, the sale of each type on the basis of a fixed unit called the size of the contract, the lowest unit is the trading of the commodity.In the previous example for cars the size of the contract = one car worth $ 10,000, meaning you can not trade a car worth less than $ 10,000 and you can be traded in multiples of that number if the two cars or three trades etc. ..Of course you are not allowed to trade a car and a half!!And the method of calculation used margin:Used margin = the number of contracts * contract size / percentage of doubleAnd will know the size of the contract deals by the company and the percentage multiplier in advance to deal with it, one of the things that may vary from company to company.In our previous example:We know that the size of the contract = one car worth $ 10,000 and the percentage multiplier = 10So we know that if we are trading in a car, the amount the agency St_khasmh cars from our agenda is:Used margin = the number of contracts * contract size / percentage of double= 1 * 10.000 / 10 = $ 1,000But if we want to buy two cars will be:Used margin = the number of contracts * contract size / percentage of double= 2 * 10.000 / 10 = $ 2,000Thus you can calculate the margin used for any number of cars If we assume that you want to buy 3 cars will be a one-time deduction of the amount of $ 3,000 margin the user.Even if we assume that you have dealt with the agency cars have the same value of the car, but it gives you the percentage of increase equal to 20 times means that the agency will allow you to trade Bassarat worth 20 times the amount paid as a token, you can calculate how much is the margin that will be deducted if you want to trade one car:Used margin = the number of contracts * contract size / percentage of double= 1 * 10.000 / 20 = $ 500This means that this agency will be deducted from your account $ 500 for every trade in the car.How to calculate available margin?Calculated the following simple equation:Margin = Equity - Margin userOnly previous example:You deposit $ 3000 in your account is already opened by the agency to have a car Frshehadk = $ 3000When I decided to buy a car the company has deducted $ 1000 as margin for the user, the margin will be available to you now:Margin = Equity - Margin user= 3000 - 1000 = $ 2000The maximum amount you can lose in the deal.If we assume that you decided to buy two cars, will be deducted $ 2000 as margin the user and the margin will be available to you now:Margin = Equity - Margin user= 3000 - 2000 = $ 1000The maximum amount you can lose in the deal.Until now it has become know as follows:
That the system of margin trading is a system that gives you the possibility to trade goods worth over times your capital.This is the kind of trade deal with private companies are doubling your capital several times as it allows you to trade a commodity as compared to discount a small percentage of its value as a token of the user.Charkk these companies do not profit or loss where there is only asking you to pay the full value of the item after sale, and its mission is limited to the implementation of the buy and sell orders that you set a price that you choose.If ordered to sell the item at a higher price than the purchase price will be implemented and it will be deducted value of the item is complete and you will return your deposit, plus full profit as if you actually have the item. The ordered sale of the product at a lower price than the purchase price will be implemented and it will be deducted from your account to have completed the full value of the item.Why not take a vivid example of the margin trading in a way ..
Margin trading system
That the system of margin trading is a system that gives you the possibility to trade goods worth over times your capital.This is the kind of trade deal with private companies are doubling your capital several times as it allows you to trade a commodity as compared to discount a small percentage of its value as a token of the user.Charkk these companies do not profit or loss where there is only asking you to pay the full value of the item after sale, and its mission is limited to the implementation of the buy and sell orders that you set a price that you choose.If ordered to sell the item at a higher price than the purchase price will be implemented and it will be deducted value of the item is complete and you will return your deposit, plus full profit as if you actually have the item. The ordered sale of the product at a lower price than the purchase price will be implemented and it will be deducted from your account to have completed the full value of the item.Before you do any buying or selling process will open an account with this company and will deposit the amount of money.This amount will continue to be without prejudice to decide to buy a commodity traded by the terms of your account will be divided into two parts:Margin Mstkhaddmeetm his opponent by the equation: used margin = the number of contracts * contract size / percentage multiplier.Mtaheetm and margin account by the equation: Margin = Equity - Margin userThe margin used is the maximum amount that can be lost in the transaction.Now we return to our previous example:I've purchased a car from an agency car at $ 10,000 was deducted $ 1000 from your margin user and remain in your account the amount of $ 2000 margin is available.Now you have a car in your name you can sell in the market .. And keen to make a profit selling them at more than $ 10,000.Now go to the market and looking for a buyer for the car at a higher price to $ 10,000, .. is not it?Not .. Not the case ..!!We will assume that the method of buying and selling cars in the country are involved in an auction in which all who wish to sell, purchase, where the price of cars on the change according to supply and demand.If the number wishing to buy cars on the number of vendors will increase the price of cars and will continue to rise as long as there are a greater number of buyers.If the number wishing to sell cars for a number of buyers will drop the price of cars and will continue to decline as long as there are a greater number of vendors.Now you have a car would like to sell ..Will go to this market and will monitor the price of the car on the market that determines depending on supply and demand in the market, the car is desirable and there are a lot of people willing to buy them will increase the price to $ 10,000 to $ 11,000 for example, and if there is more demand for them may increase the price to $ 12,000.Here you learn that all you have told Auto shot is the amount of $ 10,000, a price that I bought him the car, the car sold at the current market price of $ 12,000 which will be the winner no doubt.So when the price of the car $ 12,000 in the market to order an agency cars to sell the car in your name with this price, we will implement the agency it will sell the car at $ 12,000, will deduct the $ 10,000 full value of the car that prompts you to him and will bring you to your deposit, which opponent margin user will add profit is $ 2000 to have your account ($ 12,000 - $ 10,000) and will become your account now has $ 5,000 ($ 3,000 original account +2000 U.S. dollars profit from the deal).You can withdraw that amount or withdraw part of it, as you can return the ball again.In all cases, share a good sleep that night ..!!In exchange for that were deducted from the amount of $ 1000 profit on your account got $ 2,000, an increase of 200% of the capital .. Note that capital was not more than a token has been returned after the completion of the deal ..!!But what if I went to the market and found that the number of vendors more than the number of buyers? And that there are not many who want to buy your car?Price of the car will drop to $ 10,000 to $ 9500, for example.This means if you sold the car at the current market, you will lose $ 500.Where if you had ordered the agency cars to sell the car when he became the price of the market $ 9500 will implement it and you will get $ 9500 and will be deducted from your account with $ 500 for the complete value of the car in full, and would you deposit you paid a margin user and thus your account to have = $ 2,500 (3000 original account $ - $ 500 loss).Of course you do not like this ..Believe me, no one wonders ..!!So wait, hoping to increase demand for your car and return the price to rise.But what if demand has not increased, but increased the offer?!!Your car will drop the price more than $ 9500 to $ 9000.Here if I ordered the agency to sell your car at the current price will be $ 1000 St_khasmha your loss of your agency and your account will remain at $ 2000.Will wait for more ..But the price is still in decline, for example to 8000 will reach $.What will happen here?You can probably have to wait for more price back up.The agency, however, cars will not wait a single moment ..!!It monitors the price of cars in the market and you just watched ..!!They will not allow that the price drops more than that ..Why?Because the amount you have available margin = $ 2000 which, as I learned the maximum amount you can afford to lose in this deal.When the price of cars in the market to $ 8000 even decided to sell your car at this price the company will be able to complete the rest of the price of the car and the deduction from your existing account to have, they can discount $ 2000 in margin available to you.But if the price of cars less than $ 8000 means that your loss will be more than $ 2000 then if you decided to sell the car will not enable the agency to complete the rest of the value of the car of your account and there was no margin available for only $ 2000 only .. here will bear the agency is part of the the loss.This does not allow it .. never!!Everything that you can lose is the amount in the margin available to you.But what happens when the price of the car in the market to 8000 $?You will come from the agency so-called margin call Margin Call.It is a warning that prompts you when the company either to sell the car immediately or add more money to the margins available to you.What is this?We mean that the agency monitors the price of cars cars all the time and with any change in the price of cars in the market assume that you sell the car Stamrha it.And is always eager to bear the entire loss, and you are not.As they do not profit Charkk not Charkk loss.When the price of the car market in the $ 9000 is not a problem for the Agency cars, because if you ordered it to sell the car at this price you will be able to complete the value of the vehicle deduct $ 1,000 of margin available that you have.And when the price of the car market in the $ 8500 is also not a problem where the difference can be deducted from the margin available if ordered to sell the car at this price.But when the market price of the car $ 8000 if ordered to sell the car the price difference will be deducted from the margin available to you which is all available margin that you have $ 2000 =If the price fell more - even a penny - will not be able to complete the car value of the discount from your account.If we assume that the price of the car in the market has become = $ 7500 if you sell the car at this price will be your loss = $ 2500Sale price - purchase price$ 7500 - $ 10,000 = $ --2,500Can deduct all the available margin that you have a $ 2000 and $ 500 will not be able to be covered from your account and will bear this loss.So when it becomes: the current market price - purchase price = margin available .. CEATEC margin callWhat you have to do then?You have a choice of two:Either order the agency to sell the car at this price any sell at $ 8000 and this will be implemented agency command and deduct the difference from the margin available to you and so will be deducted $ 2000 and had thus completed the Agency the full value of the car ($ 8,000 current market price +2000 U.S. dollars the amount deducted from your account) and thus return the deposit you paid user and margin in your account becomes $ 1000 to have ($ 3,000 original account $ --2,000 amount deducted)And be your loss in the transaction is $ 2,000 incurred by you in full.If you do not want to sell at this price and you want to wait any longer may re-price rise, you should add more money to the margin available to you.If we assume that you add the $ 1000 will be available on the margin Margin = $ 3000Even if the price of cars dropped to $ 7000 the agency will be able to complete the full value of the car in case of a sale at the current price.But what if the price of the car in the market to 8000 $ and I received a margin call was Iba car and did not add more money to my account? What will happen?The agency will sell cars that the car in your name at $ 8000 and will not be waiting for you.Will be offered so on their own .. You like it or not ..!!Fajova more of the low price will sell the car at $ 8000.As we have said it will not allow you to lose more than the amount in the margin available to you.Called the moment the agency to sell the car for fear that the bear is a loss, forced closure of Auto Close.This act just no doubt ..When the rise in car prices will get the full profit for yourself will not only be required to pay the full value of the car .. If it's only fair that the agency does not bear the loss incident for lower prices .. They do not Charkk profit or loss.If you understand the previous example, I understand the principle upon which the margin trading system trading in margin basis.The system of margin trading is an opportunity for many people to enable them to trade more than the size of their capital several times while retaining the full profit and if they actually have the item and can therefore be obtained from shops on the enormous profits, a rate can not be obtained any other type of investment.Many are the people who have to engage effectively in the business world, but their biggest problem they do not have enough capital that they can work.Deluxe marginal trading system really cares about is capital!!You can understand that trading on margin like a loan that the institution you are dealing with .. where lend Foundation item that you want to trade in return for payment for a fraction of its value as a token of a redeemer, to reconsider the value of the item after it sold without you share a profit or loss.To ensure that does not take this item and run away without the return of remains this item institution has reserved in your name, where you can sell them to order the order the institution to sell at a price that you see you are appropriate, whether profit or loss should not exceed the value of the loss for the amount in your account at the institution and that you will use the Foundation to cover the loss that occurred to recover the value of the item is complete without shortages and in all circumstances.Will be able to trade in different types and sizes of goods may exceed your capital 200 times ..!!But before moving on to the margin trading system in the world market .. We'll take more examples to make sure you understand the basis upon which this type of trading, which does not work you can think of it before the full understanding.
The return of some of the concepts
We have had so far a lot of very important concepts to understand the mechanism of trading, although it is clear concepts does not have a lot of its complexity, it is important to reaffirm it as it represents a cornerstone in understanding the principles of action in trading global markets.Of the concepts that we have mentioned:Per unit of goods UnitA minimum can be traded by the commodity. Called "Lot" LotDealing institutions that operate on a margin with things can be traded in units, each unit stable called Lott lot.In our example above the Item is the car and one unit of which is the one car, which is the minimum you can trade it.You can not trade half the car .. But you can trade in multiples of this unit you can trade in any car or three, etc. ..In our previous example croaker = one car.There are institutions that allow you to trade textured soy Soy beans and less by the end of the trading is 5000 bushels Bu - a unit of weight - that croaker here bushel = 5000. And there are institutions that allow you to trade in gold and is less an end to the trading is 560 ounce croaker that is here = 560 ounces.You can trade Plaut, two or three and Bamadaafath, and you can not be traded or half lot Plaut and a half.Size of the contract Contract SizeIs the actual value of the commodity that will allow you to trade by the institution.In our example above the Item is a car and the actual value = $ 10,000When you buy 1 lot of requests from the agency means that you are required to purchase one car worth $ 10,000 and when you ask Lott Buy 2 means that you are required to purchase two cars worth $ 20,000 (2 * 10.000), and so on ..Contract size varies from one institution to another, one of the basic information Starafha before dealing with the institution that will open the way for trading on margin.
Double LeverageWhich is the ratio between the value of the item that you want to trade in and between the value of the bond which asks you to pay (used margin) to allow you to trade in this commodity.The multiplier can be calculated by the following formula:= Multiplier * number of contracts per contract size / margin usedIf we assume that the agency cars allow you to trade a car and one (1 lot) worth $ 10,000 in exchange for your account is deducted from the amount of $ 1000 for each lot of margin user ..You can calculate the ratio of double:= Multiplier * number of contracts per contract size / margin used= 1 * $ 10,000 / $ 1,000 = 10Which can be expressed as a 1:10 for every $ 1 you pay margin user will be doubled to ten times, ie for every $ 1,000 paid by the user margin you can trade in a commodity worth $ 10,000Q: I assume that there is a car agency allows you to trade four cars, each worth $ 10,000 for every $ 1,000 paid by the user, how the proportion of margin leverage provided by this agency?Answer: double = the number of contracts * Contract Size / Margin user= 4 * $ 10,000 / $ 1,000 = 40Can be expressed as a 40:1 means that for every $ 1000 be deducted margin user you can trade a commodity worth $ 40,000, equivalent to 4 cars at once.And the percentage multiplier that may be granted to you vary from one institution to another, one of the basic information Starafha before dealing on margin.Used Margin Used MarginWhich is the amount that is deducted from your account temporarily recovered as a token of this item that you choose to be traded, this amount represents a small percentage of the value of the item you Bhdzh institution temporarily pending the completion of the deal .. And shall return the person to your account after the completion of the transaction and regardless of the outcome of the deal is over, whether profit or loss.Margin is calculated by the user according to the following equation:Used margin = the number of contracts the value of the contract * / double ratioYou just need to learn the value of the contract with the organization that deals with it and that gives you double the proportion of them to be able to easily know the amount that the company temporarily St_khasmh of your margin the user.In our example, the size of the previous contract = $ 10,000 and the proportion is 10 times the multiplier, you can know how much the agency will be deducted from your account that you choose to buy 1 lot of any one vehicle:Used margin = the number of contracts the value of the contract * / double ratio= 1 * $ 10,000 / 10 = $ 1,000 will be deducted for each lotHad I thought to buy any 3 cars, 3 lots, the margin of the user who will be deducted from your account:Used margin = 3 * $ 10,000 / 1000 = $ 3,000, $ 3,000 will be deducted from your account as margin user when you buy 3 cars (3 lots).Question 1: If we assume that the size of the contract with the organization = $ 20,000 and the percentage multiplier granted = 20 times any 20:1 How much will the margin of the user who St_khasmh of this institution, if you buy 2 lots?Answer: used margin = the number of contracts * contract size / percentage of double= 2 * $ 20,000 / 20 = $ 2,000 will be deducted as a margin user.Question 2: On the same hypothesis the former, how much would be if I thought the margin used to purchase Lot 4 of this institution?Answer: used margin = 4 * 20.000 / 20 = $ 4,000 will be deducted as a margin user.Usable Margin MarginWhich is the amount remaining in your account after the deduction of the margin used it, which is the maximum amount allowed in you losing the deal.The main purpose of the margin available is that the discount is it in the event of a loss, if lost in the car your trading amount of $ 500 will be deducted from your account to complete the full value of the car as explained above.It is important to know that the institution that deal by which the margin can not allow you to lose in the deal more than the available margin in your account.When you choose a commodity trading margin used will be deducted from your first .. Will come out of this amount from the account of the transaction as if it does not exist, but in all cases will return to your account after you have finished selling the product.After the deductible is used margin will remain in your account available margin, and which was conveyed by the following equation:Margin = Equity - Margin userAs you monitor the price of the product that you have in the market, the organization that deals with it will monitor the price as well, as long as the price of the current greater than the purchase price it so that if it decided to sell them immediately would be a winner, you will not interfere with the institution and will leave you the freedom to choose the right price for the sale, but that fellprice of the current purchase price, if it so decided to sell at this price will be the loser will not interfere with the institution as long as you have it in the margin available to compensate for this loss.But as soon as the difference between the current price of the commodity and the purchase price equal to the margin of her available, will tell you that the deal ends or add more money to your account at the institution until his opponent in the case of the price continues to fall.If you do not behave yourself you do not end the transaction and did not add more money to your account, will the institution itself at the current sale of the product without waiting for you to be, for fear that without the largest price drops to be in your account to compensate for the loss.So Valhamc is available which gives you the possibility to take the loss and wait until conditions improve.From here you will learn the extent that the margin available to you more as may be best for you.Let us take an example: Suppose that the agency allow the car to trade in a car, at least one value of each car $ 10,000 and 10 times the rate of doubleSuppose you opened an account with this institution the amount of $ 3,000, we will see what will happen if I thought about trading in one car and what will happen if I thought about trading in car:Trading in one car:If you thought that a car trade in one (1 lot) so I bought one car from the institution on a margin, the margin will be used:Used margin = the number of contracts * contract size / percentage of double= 1 * $ 10,000 / 10 = $ 1,000 will be deducted $ 1000 from your account on a temporary basisAvailable margin in your account = balance - used margin= 3000 $ --1,000 $ = $ 2,000 of this amount will remain in your account as margin available, learn that this amount is the maximum amount that can allow you to defeat.If we assume that you went to the market and found that the price of the car has become = $ 12,000This means that if you sold the car at this price you will pay the full value of the car and remain of the sale value of $ 2000 will be added to your account to you as profit (12,000 -10.000)Greed may have to wait a further increase ..But suppose that the price of cars dropped to $ 9000 for the car, meaning that if you had decided to sell the car at this price will lose $ 1,000 will be deducted from your account at the institution.Suppose you waitedBut the price dropped to $ 8000 more for the car, meaning that if it decided to sell at this price will lose 2000 $ (8000-10.000 = -2000) and this amount will be deducted from your account at the institution.Here the institution will not allow you to wait for more, and you will be required to sell the car at this price and if you want to wait you must add more money to your account to be able to rival you in the event the price falls further.Thus you see that the margin available, which you have given you the ability to be patient until the price to $ 8000 per car, where you at this moment able to compensate the difference in the loss of your account.In the case of trading car:Suppose you from the start I decided to trade in two cars together, what will happen?The margin of the user who will be deducted is:Used margin = the number of contracts * contract size / percentage of double= 2 * 10.000 / 10 = $ 2,000 of this amount will be deducted from your margin enterprise user.Margin = Equity - Margin user= 3000 - 2000 = $ 1000 is the available margin, which is the maximum amount you can lose in this deal.Suppose you went to the market and found that the price of the car was $ 12,000 for the car which if you sold the cars at this price you will pay the value of complete and $ 20,000 (2 * 10.000) and will remain in your account the amount of $ 4000 Sathsal by the gain to you ($ 24,000 eighth cars at the market price current - $ 20,000 eighth cars claimed the institution).Undoubtedly, the biggest profit in trading profit in the car of trading one car.Suppose you have waited more than hope to rise.But the price has dropped $ 9500 per car.Here if I decided to sell the cars at the current price you will get $ 19,000 and will be your loss is $ 1000 will be deducted from your account but you will not be able to compensate for the loss if the price fell more than that because the amount in the margin available to you is $ 1000 which is the maximum amount you can lose in The deal, so the institution will ask you to sell the cars at the current price or add more money to your account to be able to wait more probably re-price rise. If they do not own the Foundation will sell the cars and the difference will be deducted from your account, for fear that the price falls more than the Foundation could not make up the difference from your account.Note that in the previous example because the margin available to the largest have been able to able to be patient until the price to $ 8000 but when it became less available margin can not be patient for more than the price of $ 9500.All we care about to learn that regardless of the amount of the contracts traded by and regardless of the current price of a commodity, the available margin in your account is the maximum amount allowed you to lose in the deal.So always verify the following equation:(Price * number of contracts of sale) - (number of contracts * price)> = margin available (greater than or equal to)If there is some difficulty in understanding the previous equation, it is sufficient to remember:You can not lose more than the margin available to you regardless of the number of contracts traded by.Remember that the margin trading system is the only way available to get you on the profits will not be able to get it only if you're multi-millionaires are the fastest way to achieve enormous wealth of the capital in a very modest and in record time.Remember that this road is a realistic way, legal and legitimate by millions around the world, as long as I heard them, and after reading this book you will be able to be one of them said that given this area is worth the effort and practice and inform.An area that is without a doubt, it is the domain that are manufactured millions ..An area that generates the rich.I also hope not to be afraid of the concepts of past and think that you are on the verge of a tough test in mathematics!!Concepts of the former are very clear and if you find some difficulty in understanding it is because they are new to you, we want to assure you that a little practice you will not need to calculate anything, but will be able to easily and instantly know the used margin and the margin available and everything related to Besafqatk without the need to calculate anything .We also want to assure you that you and during the actual work in trading the stock exchange will not need to calculate the margin of the user or available margin or profit and loss account will be all that automatically you will be able to know the available margin, which you have in every moment and will be able to find out how much your profit and loss at every moment .What we have mentioned earlier concepts and equations associated with it only for reference when you need to be able to understand things properly, it is sufficient to understand the concepts in the previous year, when reading the following you will increase your understanding and discerned is in front of you even more.
How to Tell profits in trading?
It is a question easy to answer ..When a commodity is traded, the profit achieved when you buy this item at one price and sell at a higher price.That is, we can not make a profit unless the price of a commodity to sell us more than our purchase price to them.On the basis of simple equation: profit = sale price - purchase priceBuy at one price and sell at a higher price .. So there is profit.Must, before we buy a commodity for trading to expect most to make sure that the price will rise.If we confirm that the price of a commodity will rise after a period of time, we buy and wait until the price rises really high price and then sell them.So we can not achieve the profit only in emerging markets, ie markets with high price days behind the day.We control the movement of prices and when we expect that the price of a commodity has become a rising any day they rise behind the day, we buy and then wait until the price rises actually Venabieha and get profit.But what if we expected that the price of a commodity will decline and will not rise?What if we expected that car prices will fall in the coming days and will not rise?Of course it would be foolish to buy a car now, we will find that the price will fall if we sold a few days after going to suffer from the loss.If the price of a car is $ 10,000, but we expect in the coming days that the price will drop to 8000 $, it would be foolish to buy at $ 10,000 because we find that the price was $ 8000 a few days after, if we sold at that price we will suffer a loss of $ 2000.If the .. We can not begin to buy only when we expect that prices will rise and that the market is rising.This question has a logical and clear wonder why emphasize it?That's because we bear markets in any market with low prices we can also achieve a profit ..!!How so?Imagine that you have a car equal to the price in the market is now $ 10,000If car prices and a drop in your car after a few days the price will drop to $ 8000, how can it be profitable?Simply will sell your car now, before the price drop at $ 10,000 and put in your pocket this amount, wait until the price falls to 8000 dollars, and you buy at this price.What result?The result is that your car returned to you along with the profit of $ 2000.I sold the amount of $ 10,000 and then prepared to buy any amount of $ 8000 you prepared your car and with a profit of $ 2000 ..!!This means that you are able to profit from the market completely falling Kthakikk to profit from the emerging market.With one difference ..You are in the emerging market (ie, when prices rise day after day) began to buy and then I finished the deal to sell.I bought the car at $ 10,000 and then sold it at $ 12,000 and made a profit.The bearish market has begun to sell the deal to buy and then I finished.I sold the car at $ 10,000 and bought again at $ 8000 and made a profit.In the case of emerging market: The purchase price is less than the selling price.In the case of the falling market: The purchase price is also less than the selling price.But I disagree is the arrangement of the deal.In the rising began to buy and sell finished, and in the bearish market began to sell and buy finished.If it does not matter that the prices are high or low to make a profit trading.It is important to have your prospect of the market is correct.If predicted that prices will rise first and then buy the item will sell when it rises really.If the forecast that prices will fall first and then sell the item you buy when low indeed.In both cases the purchase price will be less than the selling price, and no different except the order to do the deal.
It is interesting that in all financial markets, called the term "market bull" Bullish market bullish and the "market Bear" Bearish market downward, in the financial markets reflects the Taurus Bull for the forces of demand, power purchases are pushing prices up and expresses Bear Bear for the forces of supply, sales force driving prices lower.
When the demand for a commodity to be great and a lot of traders willing to buy this item in the price of this commodity will rise quickly and said that the market is controlled by the bulls bulls who pay the price rise.
When the supply is the major commodity and be a lot of traders willing to sell this item the price will drop quickly and said that the market is controlled by bears, bears who pay the price decline.
The market of any commodity is an arena for conflict between the bulls and the bears overtook the bulls, if the result was higher prices and if the Bears beat the result was lower prices.
Is what we have said a month forms of expression in all financial markets, and often will be met with this expression is interesting in different markets.
Let us take an example: imagine that there is a kind of wood is equal to a ton of it now is $ 2000 but you and your study of the market came to the conclusion that after a week will increase the price per ton of wood to 3000 $. How can you make a profit?Answer: You pay the amount of $ 2000 will buy tons of this wood, and wait for your prospect if approved will increase the price per ton to $ 3,000 then sell what you have new price and has thus made a profit equal to $ 1000 from this deal. (Sale price - purchase price).I started buying and selling finished.Example 2: Imagine that the same type of wood, which is equal to a ton of it now is $ 2000 but you from your studies of the market came to the conclusion that after a period of time will decrease the price per ton and up to $ 1000, how will profit?Answer: This will sell a ton in the market now at $ 2000 and will be in your pocket $ 2,000, when the lower price per ton to $ 1000 will buy again at $ 1000. Thus, the wood is up to you and with him won $ 1000.You might ask an important question ..How do I sell my wood and I do not I own?Well .. Stguetrdah ..When the conclusion is that the price of wood will fall after a period of time, will go to a timber merchants and ask him to lend tons of wood to return to him after a week, for example ..If approved and will take tons of wood, which borrowed it and ran to the market and selling price of $ 2,000, now you have $ 2000 but you are required to re-ton timber to a trader who Okarzk him.Well, wait some time and when the price drops to $ 1000 per ton as I expected would go to the market and buy tons of wood, $ 1,000 and then return to the merchant, leaving you $ 1000 as profit net for you.What if the price of wood instead of down?If we assume that the price per ton was $ 3,000, meaning that you be able to re-ton, who borrowed must be bought at $ 3000, but does not have to have only $ 2,000, if you need to add of your pocket $ 1000 to compensate for the difference to be able to re-wood, which borrowed.When sales start will be all I have is that the prices are low so you can purchase at a price below the selling price.As we have said that the profit does not take place unless the sale price is higher than the purchase price, and Any arrangements for this deal is important is that in the end of the deal is the price you sold the commodity is higher than the price you bought it.From this example, you will see that the profit can be achieved in the emerging market and the market bearish. The important thing is to believe your prospect.
In the financial markets is called LONG term begins when the deal to buy The term SHORT when you begin to sell the deal.
You can think that the purchase of LONG and SHORT means the sale.
Why do not we apply what we learned is now trading on a margin?Know that there is no difference between a commodity to trade in the traditional manner, and to trade on a margin of only you are in the margin will be paid only a fraction of the value of the item that Sttajer.To go back to the example of the former and we'll auto trading margin in the case of emerging market and the market bearish.Remember that we are dealing with the agency will deduct the amount of $ 1000 margin for each user to decide to trade in a car, remember that our account with the company is 3000 $.In the case of emerging marketSuppose that the price per car is $ 10,000 and assume that we, through our follow-up to the car market and we came to the conclusion that car prices will rise in the coming period, we will consider whether to buy a car in the hope that we can sell at a higher price later.We will buy 1 lot of the Agency of any car we will buy one car where a car valued at Lot = $ 10,000.The agency will auto deduct $ 1000 from our user retrieves the margin after the completion of the process, and will remain in our account is $ 2,000 available margin is the maximum amount that can be lost in this deal.Suppose that after our purchase of the car down car prices to $ 9000, if we sell the car at the current rate we will need to add $ 1000 of our pocket to complete the value of the car which we purchased from the agency at $ 10,000, deducted Agency this amount from our account to make up the difference.But we will not sell and we will wait ..Yes .. Suppose that prices rose quickly and became a $ 12,000 price of the car.If we sell the car at the current rate we will be able to pay the full value of the car and will remain $ 2000 we won two out of the deal.We will decide on the deal and end the Snamr Agency to sell the car at $ 12,000, the agency will implement it and deducted the value of the car is being urged by $ 10,000 and the remaining amount of $ 2000 as profit will it add to our account has yet to re-margin the user.Our will has = $ 5,000.Thus, the profit that we have achieved:Profit = sale price - purchase price= 12000-10000 = $ 2,000In the case of the falling marketSuppose now that the price of the car = $ 10,000, but we and our follow-up of the market we came to the conclusion that car prices will fall in the coming period.We will think the current price to sell a car to re-purchase them at a lower price later.We of course we do not have a car now, so we'll Bagtradha of agency Snamrha cars and sell them immediately in the market at the current $ 10,000.Agency will implement it and be deducted from our account $ 1000 margin user. Whether we sold or bought the car, we started a deal and we are demanding to pay the full value of the car in case of purchase or return the car in case of a sale.Will remain in our account the amount of $ 2,000 available margin, and we are now demanding the return of the car that Aqtrdhanaha.If we assume for selling us the car after car prices rose and the price of the car = $ 11,000.This means that if we decided to buy a car at the current price We will hold the added $ 1000 of our pocket, where we sold the car the amount of $ 10,000 and the car now = $ 11,000 so that we can return to the Agency we need to add $ 1000, deducted this amount from our account with the agency if we decided to actually purchase.But we will not do .. We will wait ..Yes, car prices have fallen and the price of the car = $ 8000, that is if we decided to buy a car now to bring her back to the Agency will pay the amount of $ 8000 and still have $ 2000 of the price that we sold the car in which the gain to us.We will do this and Snamr Agency to buy a car, it will be implemented and the company will pay $ 8000 and $ 2000 will remain will be added to our account has yet to recover the user and the margin will become our expense = $ 5000Thus, the profit that we have achieved:Profit = sale price - purchase price= $ 10,000 $ --8,000 = $ 2,000Thus you see that in the trading margin in the traditional manner Kalmtajerh can always make a profit in the market bullish and bearish The important thing is to believe our expectations.
Exchanges dealing margin
What goods can be traded on a margin?There are countless possible of goods traded on a margin as they buy and sell these goods in the international stock exchanges for each of them:Most important of these goods:Equity StocksGoods CommoditiesCurrency CurrenciesAnd we'll talk about each of them in some detail:
Stock markets Stock market
Markets, the most famous and most forwardAnd stock markets are simply exchanges in which they are buying and selling stocks.Operation is essentially that you open an account with a brokerage firm brokerage, and then you choose the shares on the basis of what you expect the stock price will rise after a period of time, whereupon the request of the brokerage firm that buys you a certain number of shares of this company .. Then wait until it is high shares of this company already sells what you have contributed so you get the profit.Be followed up shares of companies in the stock allocated to it, if the company wishes to buy shares is a U.S. company listed in the New York Stock Exchange Vstracb price of this company in the New York Stock Exchange, though the company that would like to buy shares is a local company in your country Vstracb price of shares of this company in the your local Stock Exchange - Stock Exchange Cairo or Amman or Kuwait, for example - and so on.Of course, is the high and low price of the company's shares, according to the performance of this company, if the performance of the company well will want a lot of people to buy shares and thus will increase the price, and if performance is weak, will want a lot of people to sell shares of this company - to get rid of them - and thus reduce the price of shares of this company.In order to achieve profit in trading the stock market Vmanmtk very clear:Is that looking for a company expects in the near future - or run - the price of shares purchased will rise whereupon now and wait some time if you expect stock prices will rise is true of this company already, then will sell the purchased shares at a higher price and thus achieves a profit.But how can you expect that the price of a company's shares will rise or not?This is the crux of the matter ..!!The expectation of this study need to be accurate for many things difficult to talk about here, and this analysis is the company's performance and the performance of the State of the economy, this company and a lot of other things ...What concerns us here is that learning to share trading can be the traditional route, and so to pay the full value of the shares so owned, and actually sell them in time.He also shares can be traded on a margin to pay a certain part of their value to possess it temporarily, as happened with you in the car the previous example.Would be interested to know that the majority of traders equity deal is not a traditional system and the introduction of margin trading stocks because the margin is, in some cases, complex and different rules and regulations depending on each country.If there is a modern way to trade stocks on a margin called CFD short for inter contract for difference, a method has become widespread in the recent period is characterized by simplicity.What concerns us now is to learn to trade stocks on a margin as possible, although not very common.
Commodities markets for goods
The markets (stock exchanges) in which the sale and purchase of basic goods, such goods:Food: wheat, corn, soybeans, barley ... Etc..Energy resources: crude oil, heating oil, natural gas ... Etc..Industrial minerals: iron, copper, chromium, aluminum ... Etc..Precious metals: gold, silver, platinum ... Etc..Each type of goods the previous market its own goods are traded on a margin so that the product you choose to imagine that the price will rise in the near future, whereupon buy to sell after the price rise actually maintains full profit for you.These goods are sold in the form of units fixed as mentioned above for each commodity unit of their own, for example, a unit of gold equivalent to approximately 16 kg each and a unit called Lott lot.When you buy a "lot" of gold you are buying 16 kg of gold at a price as the hope of selling it later at a higher price, will pay a fraction of the price of this quantity of gold used as a margin to be booked in your name exactly as we mentioned in the example of cars.Will then and now that there are 16 kilograms of gold with your name .. Will follow-up gold prices in the international stock market in gold when you find that the price was high, order a company that deals with the lute, which sells your name the current price the company will implement the order value and deducted lot of gold for your account and add the rest as profit after you return the used margin.But now that gold prices are down more than the price you bought lots of gold meaning it may order the company to sell Lot reserved in your name at the price low, where will compensate the difference in price of the discount from your existing account has, of course you will have freedom to wait perhaps the price is due to rise to no more than the difference between the price when you buy a lot of gold, current price for the amount in the margin available to you as we mentioned, the reason that it makes you feel a loss of sale is the fear of further decline in the price and thus expand the fear of loss.Applies to gold what applies to other commodities, but for each commodity bourse, there is exchange of crude oil and there is exchange of iron .. Etc..Different influences that affect the price of every commodity separately, for example, crude oil price is affected by political changes in the areas of production and international politics, for example, the price of wheat is affected by climatic conditions and production potential in the major exporters of wheat, and so on ..Not be possible for someone to work with all types of goods, but to be specialization in the field of trade is limited because the study of the movement of a commodity and therefore knowledge of the possibility to decrease or increase price of a commodity need a lot of study and follow-up and experience in the market for this commodity.Commodity markets are traded mostly on a margin, but in a special way called derivatives derivatives (forward sales and options futures options), a method is difficult to explain here, which is beyond the scope of this book.What concerns us to know is that there are many goods can be traded on a margin completely Kaloslob we talked about in the example of cars.
Currency markets Currency market
It is the largest stock exchanges in the world at all ..!!Where is the sale and purchase of one country's currency against the currency of another country to pay ..For example, where to buy the U.S. dollar to pay the single European currency (Euro), or vice-versa any purchase euro-dollar pay interview.Or buy the U.S. dollar to pay the Japanese yen, or vice versa.Or buy the U.S. dollar to pay the pound sterling, or vice versa.Or buy the U.S. dollar to pay the CHF interview, or vice versa.Or buy any currency, and payments for other currency as a price to it.The profit is obtained exploiting minor differences between the prices of currencies, a simple difference in most of the time, but it can turn into huge profits when they are buying and selling large amounts of money.If you need large sums of money to take advantage of this market .. Is not it?Not .. Not the case ..!!With margin trading system will be able to buy and sell very large amounts of currencies for the payment of a fraction of margin user will retain the full profit to you as if you have large sums of money actually.Provide trading currencies great opportunity for enormous profits and quickly can not be obtained in any other area of investment.Characterized by trading currencies on margin from other trading a lot of benefits that suit the average person with limited resources and limited experience in the economic sphere.For these reasons and others, we devote the rest of this book to let you know the foundations to engage in this area is very exciting and lucrative that the best one to deal with him, we will talk in detail about everything you need to become a trader in speculation in the prices of international currencies.This might be a moment is a moment in your career ..!!Before turning to that we will continue to talk in detail about the types of stock markets and how to get the profits from trading in general, which helps you to understand the topic more easily and accurately.
Margin trading and the types of exchanges
Know that there are a lot of goods are bought and sold among the people, institutions and countries, of these goods: stocks, bonds, commodities and currencies.And know that each commodity market where he will meet your interested in this item and share bought and sold, and where the price of the goods determined on the basis of the law of supply and demand, supply and demand.Valslap which increases demand for the supply of high price, and commodity supply, which increases the demand for low price.This is called market: stockAnd stock exchanges exist in all countries of the world, and each stock exchange and its field of specialization.The thing that concerns us to know that the stock market comes of two types:Direct exchange Exchange exchangesStock exchanges across the networks Over the counter (OTC)What is the difference between the two types?
Had a tremendous development of communication technology, programming a key role in the development of the Internet and spread around the world.This has had a major role in bringing about a radical change in a lot of things economic, cultural and even political.The Internet now is the "network of networks" that links between people of differing cultural backgrounds of their countries and gain a human can not do without him, but increasingly rely on one day behind the day.And already trading in the stock exchanges of the most economic advantage of the spread of the Internet.Where one can buy and sell any type of goods, from anywhere in the world and in any exchange wishes.All one needs is a computer and an Internet connection ..!!Whether you want to trade stocks or commodities or currencies, The Internet has become the main venue and safe to do so.How are traded on the stock markets through the Internet?Which was the type of item you want to trade in, you can not do so only through the company will be the mediator between you and the stock market that deal in them, one can not generally go to the Stock Exchange immediately and begin buying and selling directly, but is done by private companies and licensed and highly experienced called brokerage Brokerage firms. which will implement the buy and sell orders, which order and doing a lot of other services to you.The process is essentially as follows:
In the past, dealing between you and the brokerage company is by telephone or by using fax, decide when to buy shares of a company, for example you are connecting up with the brokerage firm and ask them to do to buy the required quantity of the shares of this company at the price determined.Now, as a result of the evolution of the Internet bringing the deal between you and the brokerage firm is a special program by the platform to get to him from the brokerage firm you download and download to your computer.When you open an account with the brokerage company that the company you choose will ask you to download the software that you own on your computer and give you a password you will use your own password to connect to the brokerage company securely.This program will save you a direct and immediate connection between your computer and which will be connected to the Internet and the brokerage company in which you can select buy and sell orders and view your account and previous operations that you have made .. Etc.Characterized these programs as easily as strong and clear and it is not in need of special experience in the computer or the Internet to deal with it and is designed primarily for the use of the average person with limited experience in the computer, and will always find complete instructions on how to use these programs from the brokerage company that deals with it. And we'll talk about that later.We have provided these capabilities, which were among the dreams a few years ago an opportunity for many people to deal with brokerage firms may be at the other end of the world without the need to comply with the companies in your country, as was the case in the past, giving more room for choice and sparked competition among companies mediation to provide better services and to reduce the costs of the stores required to pay for these services.And now ..After becoming familiar with a lot of information on the mechanism of trading stock markets in general and the principles of margin trading system. We can now move to the second and main part of this book, the part of the relevant trading currencies on a margin, which will be after you read and you understand what it is eligible to begin to go into practice in this exciting world.__________________
Used margin and the margin available
Used and Usable margin
When you open an account with the company to allow trading on a margin which will be deposited in advance a fixed amount would still be without prejudice to the amount you decide to buy a car, that is, to decide to enter into a deal, then your account will be divided into two parts:Used margin used margin: a deposit which will be deducted in advance, a refundable deposit will be returned to your account after the sale of the car, whether sold at a profit or a loss.Margin usable margin: which is the amount remaining in your account after the deduction of the margin of the user, this amount is the maximum amount allowed in you losing the deal.How to calculate the margin used?We do not want to take care of a lot in how to calculate the margin on your own user often will not need them where you will determine in advance the amount that the company will be deducted from your account as a token for every unit of the commodity. In the previous example and the agency will tell you it is auto deducted $ 1000 from your user margin for each car purchase. If I bought two cars will be deducted from your $ 2000 margin user and your account will remain in the $ 1000 margin is available.In spite of that the company will deal with it Stgnek the need for a margin account used only for yourself that it would be very useful to learn how to do this yourself.Can calculate the margin of the user who will be deducted as a token of any commodity by any company with the following equation:Used margin = value of the item purchased with a full / double ratioIn the previous example: the value of the car full = $ 10,000 and the percentage multiplier that allows the company is 10 times, meaning that doubled the company's capital you 10 times, so the margin St_khasmh Agency:Used margin = value of the item a full / double ratio= 10.000 / 10 = $ 1,000Had I thought to buy two cars instead of the car will be the margin of the user who will be deducted from your account:Used margin = 20.000 / 1000 = $ 2000In the global market deal that will allow brokerage firms to trade on a margin of various types of goods for each company a certain quality of goods, the sale of each type on the basis of a fixed unit called the size of the contract, the lowest unit is the trading of the commodity.In the previous example for cars the size of the contract = one car worth $ 10,000, meaning you can not trade a car worth less than $ 10,000 and you can be traded in multiples of that number if the two cars or three trades etc. ..Of course you are not allowed to trade a car and a half!!And the method of calculation used margin:Used margin = the number of contracts * contract size / percentage of doubleAnd will know the size of the contract deals by the company and the percentage multiplier in advance to deal with it, one of the things that may vary from company to company.In our previous example:We know that the size of the contract = one car worth $ 10,000 and the percentage multiplier = 10So we know that if we are trading in a car, the amount the agency St_khasmh cars from our agenda is:Used margin = the number of contracts * contract size / percentage of double= 1 * 10.000 / 10 = $ 1,000But if we want to buy two cars will be:Used margin = the number of contracts * contract size / percentage of double= 2 * 10.000 / 10 = $ 2,000Thus you can calculate the margin used for any number of cars If we assume that you want to buy 3 cars will be a one-time deduction of the amount of $ 3,000 margin the user.Even if we assume that you have dealt with the agency cars have the same value of the car, but it gives you the percentage of increase equal to 20 times means that the agency will allow you to trade Bassarat worth 20 times the amount paid as a token, you can calculate how much is the margin that will be deducted if you want to trade one car:Used margin = the number of contracts * contract size / percentage of double= 1 * 10.000 / 20 = $ 500This means that this agency will be deducted from your account $ 500 for every trade in the car.How to calculate available margin?Calculated the following simple equation:Margin = Equity - Margin userOnly previous example:You deposit $ 3000 in your account is already opened by the agency to have a car Frshehadk = $ 3000When I decided to buy a car the company has deducted $ 1000 as margin for the user, the margin will be available to you now:Margin = Equity - Margin user= 3000 - 1000 = $ 2000The maximum amount you can lose in the deal.If we assume that you decided to buy two cars, will be deducted $ 2000 as margin the user and the margin will be available to you now:Margin = Equity - Margin user= 3000 - 2000 = $ 1000The maximum amount you can lose in the deal.Until now it has become know as follows:
That the system of margin trading is a system that gives you the possibility to trade goods worth over times your capital.This is the kind of trade deal with private companies are doubling your capital several times as it allows you to trade a commodity as compared to discount a small percentage of its value as a token of the user.Charkk these companies do not profit or loss where there is only asking you to pay the full value of the item after sale, and its mission is limited to the implementation of the buy and sell orders that you set a price that you choose.If ordered to sell the item at a higher price than the purchase price will be implemented and it will be deducted value of the item is complete and you will return your deposit, plus full profit as if you actually have the item. The ordered sale of the product at a lower price than the purchase price will be implemented and it will be deducted from your account to have completed the full value of the item.Why not take a vivid example of the margin trading in a way ..
Margin trading system
That the system of margin trading is a system that gives you the possibility to trade goods worth over times your capital.This is the kind of trade deal with private companies are doubling your capital several times as it allows you to trade a commodity as compared to discount a small percentage of its value as a token of the user.Charkk these companies do not profit or loss where there is only asking you to pay the full value of the item after sale, and its mission is limited to the implementation of the buy and sell orders that you set a price that you choose.If ordered to sell the item at a higher price than the purchase price will be implemented and it will be deducted value of the item is complete and you will return your deposit, plus full profit as if you actually have the item. The ordered sale of the product at a lower price than the purchase price will be implemented and it will be deducted from your account to have completed the full value of the item.Before you do any buying or selling process will open an account with this company and will deposit the amount of money.This amount will continue to be without prejudice to decide to buy a commodity traded by the terms of your account will be divided into two parts:Margin Mstkhaddmeetm his opponent by the equation: used margin = the number of contracts * contract size / percentage multiplier.Mtaheetm and margin account by the equation: Margin = Equity - Margin userThe margin used is the maximum amount that can be lost in the transaction.Now we return to our previous example:I've purchased a car from an agency car at $ 10,000 was deducted $ 1000 from your margin user and remain in your account the amount of $ 2000 margin is available.Now you have a car in your name you can sell in the market .. And keen to make a profit selling them at more than $ 10,000.Now go to the market and looking for a buyer for the car at a higher price to $ 10,000, .. is not it?Not .. Not the case ..!!We will assume that the method of buying and selling cars in the country are involved in an auction in which all who wish to sell, purchase, where the price of cars on the change according to supply and demand.If the number wishing to buy cars on the number of vendors will increase the price of cars and will continue to rise as long as there are a greater number of buyers.If the number wishing to sell cars for a number of buyers will drop the price of cars and will continue to decline as long as there are a greater number of vendors.Now you have a car would like to sell ..Will go to this market and will monitor the price of the car on the market that determines depending on supply and demand in the market, the car is desirable and there are a lot of people willing to buy them will increase the price to $ 10,000 to $ 11,000 for example, and if there is more demand for them may increase the price to $ 12,000.Here you learn that all you have told Auto shot is the amount of $ 10,000, a price that I bought him the car, the car sold at the current market price of $ 12,000 which will be the winner no doubt.So when the price of the car $ 12,000 in the market to order an agency cars to sell the car in your name with this price, we will implement the agency it will sell the car at $ 12,000, will deduct the $ 10,000 full value of the car that prompts you to him and will bring you to your deposit, which opponent margin user will add profit is $ 2000 to have your account ($ 12,000 - $ 10,000) and will become your account now has $ 5,000 ($ 3,000 original account +2000 U.S. dollars profit from the deal).You can withdraw that amount or withdraw part of it, as you can return the ball again.In all cases, share a good sleep that night ..!!In exchange for that were deducted from the amount of $ 1000 profit on your account got $ 2,000, an increase of 200% of the capital .. Note that capital was not more than a token has been returned after the completion of the deal ..!!But what if I went to the market and found that the number of vendors more than the number of buyers? And that there are not many who want to buy your car?Price of the car will drop to $ 10,000 to $ 9500, for example.This means if you sold the car at the current market, you will lose $ 500.Where if you had ordered the agency cars to sell the car when he became the price of the market $ 9500 will implement it and you will get $ 9500 and will be deducted from your account with $ 500 for the complete value of the car in full, and would you deposit you paid a margin user and thus your account to have = $ 2,500 (3000 original account $ - $ 500 loss).Of course you do not like this ..Believe me, no one wonders ..!!So wait, hoping to increase demand for your car and return the price to rise.But what if demand has not increased, but increased the offer?!!Your car will drop the price more than $ 9500 to $ 9000.Here if I ordered the agency to sell your car at the current price will be $ 1000 St_khasmha your loss of your agency and your account will remain at $ 2000.Will wait for more ..But the price is still in decline, for example to 8000 will reach $.What will happen here?You can probably have to wait for more price back up.The agency, however, cars will not wait a single moment ..!!It monitors the price of cars in the market and you just watched ..!!They will not allow that the price drops more than that ..Why?Because the amount you have available margin = $ 2000 which, as I learned the maximum amount you can afford to lose in this deal.When the price of cars in the market to $ 8000 even decided to sell your car at this price the company will be able to complete the rest of the price of the car and the deduction from your existing account to have, they can discount $ 2000 in margin available to you.But if the price of cars less than $ 8000 means that your loss will be more than $ 2000 then if you decided to sell the car will not enable the agency to complete the rest of the value of the car of your account and there was no margin available for only $ 2000 only .. here will bear the agency is part of the the loss.This does not allow it .. never!!Everything that you can lose is the amount in the margin available to you.But what happens when the price of the car in the market to 8000 $?You will come from the agency so-called margin call Margin Call.It is a warning that prompts you when the company either to sell the car immediately or add more money to the margins available to you.What is this?We mean that the agency monitors the price of cars cars all the time and with any change in the price of cars in the market assume that you sell the car Stamrha it.And is always eager to bear the entire loss, and you are not.As they do not profit Charkk not Charkk loss.When the price of the car market in the $ 9000 is not a problem for the Agency cars, because if you ordered it to sell the car at this price you will be able to complete the value of the vehicle deduct $ 1,000 of margin available that you have.And when the price of the car market in the $ 8500 is also not a problem where the difference can be deducted from the margin available if ordered to sell the car at this price.But when the market price of the car $ 8000 if ordered to sell the car the price difference will be deducted from the margin available to you which is all available margin that you have $ 2000 =If the price fell more - even a penny - will not be able to complete the car value of the discount from your account.If we assume that the price of the car in the market has become = $ 7500 if you sell the car at this price will be your loss = $ 2500Sale price - purchase price$ 7500 - $ 10,000 = $ --2,500Can deduct all the available margin that you have a $ 2000 and $ 500 will not be able to be covered from your account and will bear this loss.So when it becomes: the current market price - purchase price = margin available .. CEATEC margin callWhat you have to do then?You have a choice of two:Either order the agency to sell the car at this price any sell at $ 8000 and this will be implemented agency command and deduct the difference from the margin available to you and so will be deducted $ 2000 and had thus completed the Agency the full value of the car ($ 8,000 current market price +2000 U.S. dollars the amount deducted from your account) and thus return the deposit you paid user and margin in your account becomes $ 1000 to have ($ 3,000 original account $ --2,000 amount deducted)And be your loss in the transaction is $ 2,000 incurred by you in full.If you do not want to sell at this price and you want to wait any longer may re-price rise, you should add more money to the margin available to you.If we assume that you add the $ 1000 will be available on the margin Margin = $ 3000Even if the price of cars dropped to $ 7000 the agency will be able to complete the full value of the car in case of a sale at the current price.But what if the price of the car in the market to 8000 $ and I received a margin call was Iba car and did not add more money to my account? What will happen?The agency will sell cars that the car in your name at $ 8000 and will not be waiting for you.Will be offered so on their own .. You like it or not ..!!Fajova more of the low price will sell the car at $ 8000.As we have said it will not allow you to lose more than the amount in the margin available to you.Called the moment the agency to sell the car for fear that the bear is a loss, forced closure of Auto Close.This act just no doubt ..When the rise in car prices will get the full profit for yourself will not only be required to pay the full value of the car .. If it's only fair that the agency does not bear the loss incident for lower prices .. They do not Charkk profit or loss.If you understand the previous example, I understand the principle upon which the margin trading system trading in margin basis.The system of margin trading is an opportunity for many people to enable them to trade more than the size of their capital several times while retaining the full profit and if they actually have the item and can therefore be obtained from shops on the enormous profits, a rate can not be obtained any other type of investment.Many are the people who have to engage effectively in the business world, but their biggest problem they do not have enough capital that they can work.Deluxe marginal trading system really cares about is capital!!You can understand that trading on margin like a loan that the institution you are dealing with .. where lend Foundation item that you want to trade in return for payment for a fraction of its value as a token of a redeemer, to reconsider the value of the item after it sold without you share a profit or loss.To ensure that does not take this item and run away without the return of remains this item institution has reserved in your name, where you can sell them to order the order the institution to sell at a price that you see you are appropriate, whether profit or loss should not exceed the value of the loss for the amount in your account at the institution and that you will use the Foundation to cover the loss that occurred to recover the value of the item is complete without shortages and in all circumstances.Will be able to trade in different types and sizes of goods may exceed your capital 200 times ..!!But before moving on to the margin trading system in the world market .. We'll take more examples to make sure you understand the basis upon which this type of trading, which does not work you can think of it before the full understanding.
The return of some of the concepts
We have had so far a lot of very important concepts to understand the mechanism of trading, although it is clear concepts does not have a lot of its complexity, it is important to reaffirm it as it represents a cornerstone in understanding the principles of action in trading global markets.Of the concepts that we have mentioned:Per unit of goods UnitA minimum can be traded by the commodity. Called "Lot" LotDealing institutions that operate on a margin with things can be traded in units, each unit stable called Lott lot.In our example above the Item is the car and one unit of which is the one car, which is the minimum you can trade it.You can not trade half the car .. But you can trade in multiples of this unit you can trade in any car or three, etc. ..In our previous example croaker = one car.There are institutions that allow you to trade textured soy Soy beans and less by the end of the trading is 5000 bushels Bu - a unit of weight - that croaker here bushel = 5000. And there are institutions that allow you to trade in gold and is less an end to the trading is 560 ounce croaker that is here = 560 ounces.You can trade Plaut, two or three and Bamadaafath, and you can not be traded or half lot Plaut and a half.Size of the contract Contract SizeIs the actual value of the commodity that will allow you to trade by the institution.In our example above the Item is a car and the actual value = $ 10,000When you buy 1 lot of requests from the agency means that you are required to purchase one car worth $ 10,000 and when you ask Lott Buy 2 means that you are required to purchase two cars worth $ 20,000 (2 * 10.000), and so on ..Contract size varies from one institution to another, one of the basic information Starafha before dealing with the institution that will open the way for trading on margin.
Double LeverageWhich is the ratio between the value of the item that you want to trade in and between the value of the bond which asks you to pay (used margin) to allow you to trade in this commodity.The multiplier can be calculated by the following formula:= Multiplier * number of contracts per contract size / margin usedIf we assume that the agency cars allow you to trade a car and one (1 lot) worth $ 10,000 in exchange for your account is deducted from the amount of $ 1000 for each lot of margin user ..You can calculate the ratio of double:= Multiplier * number of contracts per contract size / margin used= 1 * $ 10,000 / $ 1,000 = 10Which can be expressed as a 1:10 for every $ 1 you pay margin user will be doubled to ten times, ie for every $ 1,000 paid by the user margin you can trade in a commodity worth $ 10,000Q: I assume that there is a car agency allows you to trade four cars, each worth $ 10,000 for every $ 1,000 paid by the user, how the proportion of margin leverage provided by this agency?Answer: double = the number of contracts * Contract Size / Margin user= 4 * $ 10,000 / $ 1,000 = 40Can be expressed as a 40:1 means that for every $ 1000 be deducted margin user you can trade a commodity worth $ 40,000, equivalent to 4 cars at once.And the percentage multiplier that may be granted to you vary from one institution to another, one of the basic information Starafha before dealing on margin.Used Margin Used MarginWhich is the amount that is deducted from your account temporarily recovered as a token of this item that you choose to be traded, this amount represents a small percentage of the value of the item you Bhdzh institution temporarily pending the completion of the deal .. And shall return the person to your account after the completion of the transaction and regardless of the outcome of the deal is over, whether profit or loss.Margin is calculated by the user according to the following equation:Used margin = the number of contracts the value of the contract * / double ratioYou just need to learn the value of the contract with the organization that deals with it and that gives you double the proportion of them to be able to easily know the amount that the company temporarily St_khasmh of your margin the user.In our example, the size of the previous contract = $ 10,000 and the proportion is 10 times the multiplier, you can know how much the agency will be deducted from your account that you choose to buy 1 lot of any one vehicle:Used margin = the number of contracts the value of the contract * / double ratio= 1 * $ 10,000 / 10 = $ 1,000 will be deducted for each lotHad I thought to buy any 3 cars, 3 lots, the margin of the user who will be deducted from your account:Used margin = 3 * $ 10,000 / 1000 = $ 3,000, $ 3,000 will be deducted from your account as margin user when you buy 3 cars (3 lots).Question 1: If we assume that the size of the contract with the organization = $ 20,000 and the percentage multiplier granted = 20 times any 20:1 How much will the margin of the user who St_khasmh of this institution, if you buy 2 lots?Answer: used margin = the number of contracts * contract size / percentage of double= 2 * $ 20,000 / 20 = $ 2,000 will be deducted as a margin user.Question 2: On the same hypothesis the former, how much would be if I thought the margin used to purchase Lot 4 of this institution?Answer: used margin = 4 * 20.000 / 20 = $ 4,000 will be deducted as a margin user.Usable Margin MarginWhich is the amount remaining in your account after the deduction of the margin used it, which is the maximum amount allowed in you losing the deal.The main purpose of the margin available is that the discount is it in the event of a loss, if lost in the car your trading amount of $ 500 will be deducted from your account to complete the full value of the car as explained above.It is important to know that the institution that deal by which the margin can not allow you to lose in the deal more than the available margin in your account.When you choose a commodity trading margin used will be deducted from your first .. Will come out of this amount from the account of the transaction as if it does not exist, but in all cases will return to your account after you have finished selling the product.After the deductible is used margin will remain in your account available margin, and which was conveyed by the following equation:Margin = Equity - Margin userAs you monitor the price of the product that you have in the market, the organization that deals with it will monitor the price as well, as long as the price of the current greater than the purchase price it so that if it decided to sell them immediately would be a winner, you will not interfere with the institution and will leave you the freedom to choose the right price for the sale, but that fellprice of the current purchase price, if it so decided to sell at this price will be the loser will not interfere with the institution as long as you have it in the margin available to compensate for this loss.But as soon as the difference between the current price of the commodity and the purchase price equal to the margin of her available, will tell you that the deal ends or add more money to your account at the institution until his opponent in the case of the price continues to fall.If you do not behave yourself you do not end the transaction and did not add more money to your account, will the institution itself at the current sale of the product without waiting for you to be, for fear that without the largest price drops to be in your account to compensate for the loss.So Valhamc is available which gives you the possibility to take the loss and wait until conditions improve.From here you will learn the extent that the margin available to you more as may be best for you.Let us take an example: Suppose that the agency allow the car to trade in a car, at least one value of each car $ 10,000 and 10 times the rate of doubleSuppose you opened an account with this institution the amount of $ 3,000, we will see what will happen if I thought about trading in one car and what will happen if I thought about trading in car:Trading in one car:If you thought that a car trade in one (1 lot) so I bought one car from the institution on a margin, the margin will be used:Used margin = the number of contracts * contract size / percentage of double= 1 * $ 10,000 / 10 = $ 1,000 will be deducted $ 1000 from your account on a temporary basisAvailable margin in your account = balance - used margin= 3000 $ --1,000 $ = $ 2,000 of this amount will remain in your account as margin available, learn that this amount is the maximum amount that can allow you to defeat.If we assume that you went to the market and found that the price of the car has become = $ 12,000This means that if you sold the car at this price you will pay the full value of the car and remain of the sale value of $ 2000 will be added to your account to you as profit (12,000 -10.000)Greed may have to wait a further increase ..But suppose that the price of cars dropped to $ 9000 for the car, meaning that if you had decided to sell the car at this price will lose $ 1,000 will be deducted from your account at the institution.Suppose you waitedBut the price dropped to $ 8000 more for the car, meaning that if it decided to sell at this price will lose 2000 $ (8000-10.000 = -2000) and this amount will be deducted from your account at the institution.Here the institution will not allow you to wait for more, and you will be required to sell the car at this price and if you want to wait you must add more money to your account to be able to rival you in the event the price falls further.Thus you see that the margin available, which you have given you the ability to be patient until the price to $ 8000 per car, where you at this moment able to compensate the difference in the loss of your account.In the case of trading car:Suppose you from the start I decided to trade in two cars together, what will happen?The margin of the user who will be deducted is:Used margin = the number of contracts * contract size / percentage of double= 2 * 10.000 / 10 = $ 2,000 of this amount will be deducted from your margin enterprise user.Margin = Equity - Margin user= 3000 - 2000 = $ 1000 is the available margin, which is the maximum amount you can lose in this deal.Suppose you went to the market and found that the price of the car was $ 12,000 for the car which if you sold the cars at this price you will pay the value of complete and $ 20,000 (2 * 10.000) and will remain in your account the amount of $ 4000 Sathsal by the gain to you ($ 24,000 eighth cars at the market price current - $ 20,000 eighth cars claimed the institution).Undoubtedly, the biggest profit in trading profit in the car of trading one car.Suppose you have waited more than hope to rise.But the price has dropped $ 9500 per car.Here if I decided to sell the cars at the current price you will get $ 19,000 and will be your loss is $ 1000 will be deducted from your account but you will not be able to compensate for the loss if the price fell more than that because the amount in the margin available to you is $ 1000 which is the maximum amount you can lose in The deal, so the institution will ask you to sell the cars at the current price or add more money to your account to be able to wait more probably re-price rise. If they do not own the Foundation will sell the cars and the difference will be deducted from your account, for fear that the price falls more than the Foundation could not make up the difference from your account.Note that in the previous example because the margin available to the largest have been able to able to be patient until the price to $ 8000 but when it became less available margin can not be patient for more than the price of $ 9500.All we care about to learn that regardless of the amount of the contracts traded by and regardless of the current price of a commodity, the available margin in your account is the maximum amount allowed you to lose in the deal.So always verify the following equation:(Price * number of contracts of sale) - (number of contracts * price)> = margin available (greater than or equal to)If there is some difficulty in understanding the previous equation, it is sufficient to remember:You can not lose more than the margin available to you regardless of the number of contracts traded by.Remember that the margin trading system is the only way available to get you on the profits will not be able to get it only if you're multi-millionaires are the fastest way to achieve enormous wealth of the capital in a very modest and in record time.Remember that this road is a realistic way, legal and legitimate by millions around the world, as long as I heard them, and after reading this book you will be able to be one of them said that given this area is worth the effort and practice and inform.An area that is without a doubt, it is the domain that are manufactured millions ..An area that generates the rich.I also hope not to be afraid of the concepts of past and think that you are on the verge of a tough test in mathematics!!Concepts of the former are very clear and if you find some difficulty in understanding it is because they are new to you, we want to assure you that a little practice you will not need to calculate anything, but will be able to easily and instantly know the used margin and the margin available and everything related to Besafqatk without the need to calculate anything .We also want to assure you that you and during the actual work in trading the stock exchange will not need to calculate the margin of the user or available margin or profit and loss account will be all that automatically you will be able to know the available margin, which you have in every moment and will be able to find out how much your profit and loss at every moment .What we have mentioned earlier concepts and equations associated with it only for reference when you need to be able to understand things properly, it is sufficient to understand the concepts in the previous year, when reading the following you will increase your understanding and discerned is in front of you even more.
How to Tell profits in trading?
It is a question easy to answer ..When a commodity is traded, the profit achieved when you buy this item at one price and sell at a higher price.That is, we can not make a profit unless the price of a commodity to sell us more than our purchase price to them.On the basis of simple equation: profit = sale price - purchase priceBuy at one price and sell at a higher price .. So there is profit.Must, before we buy a commodity for trading to expect most to make sure that the price will rise.If we confirm that the price of a commodity will rise after a period of time, we buy and wait until the price rises really high price and then sell them.So we can not achieve the profit only in emerging markets, ie markets with high price days behind the day.We control the movement of prices and when we expect that the price of a commodity has become a rising any day they rise behind the day, we buy and then wait until the price rises actually Venabieha and get profit.But what if we expected that the price of a commodity will decline and will not rise?What if we expected that car prices will fall in the coming days and will not rise?Of course it would be foolish to buy a car now, we will find that the price will fall if we sold a few days after going to suffer from the loss.If the price of a car is $ 10,000, but we expect in the coming days that the price will drop to 8000 $, it would be foolish to buy at $ 10,000 because we find that the price was $ 8000 a few days after, if we sold at that price we will suffer a loss of $ 2000.If the .. We can not begin to buy only when we expect that prices will rise and that the market is rising.This question has a logical and clear wonder why emphasize it?That's because we bear markets in any market with low prices we can also achieve a profit ..!!How so?Imagine that you have a car equal to the price in the market is now $ 10,000If car prices and a drop in your car after a few days the price will drop to $ 8000, how can it be profitable?Simply will sell your car now, before the price drop at $ 10,000 and put in your pocket this amount, wait until the price falls to 8000 dollars, and you buy at this price.What result?The result is that your car returned to you along with the profit of $ 2000.I sold the amount of $ 10,000 and then prepared to buy any amount of $ 8000 you prepared your car and with a profit of $ 2000 ..!!This means that you are able to profit from the market completely falling Kthakikk to profit from the emerging market.With one difference ..You are in the emerging market (ie, when prices rise day after day) began to buy and then I finished the deal to sell.I bought the car at $ 10,000 and then sold it at $ 12,000 and made a profit.The bearish market has begun to sell the deal to buy and then I finished.I sold the car at $ 10,000 and bought again at $ 8000 and made a profit.In the case of emerging market: The purchase price is less than the selling price.In the case of the falling market: The purchase price is also less than the selling price.But I disagree is the arrangement of the deal.In the rising began to buy and sell finished, and in the bearish market began to sell and buy finished.If it does not matter that the prices are high or low to make a profit trading.It is important to have your prospect of the market is correct.If predicted that prices will rise first and then buy the item will sell when it rises really.If the forecast that prices will fall first and then sell the item you buy when low indeed.In both cases the purchase price will be less than the selling price, and no different except the order to do the deal.
It is interesting that in all financial markets, called the term "market bull" Bullish market bullish and the "market Bear" Bearish market downward, in the financial markets reflects the Taurus Bull for the forces of demand, power purchases are pushing prices up and expresses Bear Bear for the forces of supply, sales force driving prices lower.
When the demand for a commodity to be great and a lot of traders willing to buy this item in the price of this commodity will rise quickly and said that the market is controlled by the bulls bulls who pay the price rise.
When the supply is the major commodity and be a lot of traders willing to sell this item the price will drop quickly and said that the market is controlled by bears, bears who pay the price decline.
The market of any commodity is an arena for conflict between the bulls and the bears overtook the bulls, if the result was higher prices and if the Bears beat the result was lower prices.
Is what we have said a month forms of expression in all financial markets, and often will be met with this expression is interesting in different markets.
Let us take an example: imagine that there is a kind of wood is equal to a ton of it now is $ 2000 but you and your study of the market came to the conclusion that after a week will increase the price per ton of wood to 3000 $. How can you make a profit?Answer: You pay the amount of $ 2000 will buy tons of this wood, and wait for your prospect if approved will increase the price per ton to $ 3,000 then sell what you have new price and has thus made a profit equal to $ 1000 from this deal. (Sale price - purchase price).I started buying and selling finished.Example 2: Imagine that the same type of wood, which is equal to a ton of it now is $ 2000 but you from your studies of the market came to the conclusion that after a period of time will decrease the price per ton and up to $ 1000, how will profit?Answer: This will sell a ton in the market now at $ 2000 and will be in your pocket $ 2,000, when the lower price per ton to $ 1000 will buy again at $ 1000. Thus, the wood is up to you and with him won $ 1000.You might ask an important question ..How do I sell my wood and I do not I own?Well .. Stguetrdah ..When the conclusion is that the price of wood will fall after a period of time, will go to a timber merchants and ask him to lend tons of wood to return to him after a week, for example ..If approved and will take tons of wood, which borrowed it and ran to the market and selling price of $ 2,000, now you have $ 2000 but you are required to re-ton timber to a trader who Okarzk him.Well, wait some time and when the price drops to $ 1000 per ton as I expected would go to the market and buy tons of wood, $ 1,000 and then return to the merchant, leaving you $ 1000 as profit net for you.What if the price of wood instead of down?If we assume that the price per ton was $ 3,000, meaning that you be able to re-ton, who borrowed must be bought at $ 3000, but does not have to have only $ 2,000, if you need to add of your pocket $ 1000 to compensate for the difference to be able to re-wood, which borrowed.When sales start will be all I have is that the prices are low so you can purchase at a price below the selling price.As we have said that the profit does not take place unless the sale price is higher than the purchase price, and Any arrangements for this deal is important is that in the end of the deal is the price you sold the commodity is higher than the price you bought it.From this example, you will see that the profit can be achieved in the emerging market and the market bearish. The important thing is to believe your prospect.
In the financial markets is called LONG term begins when the deal to buy The term SHORT when you begin to sell the deal.
You can think that the purchase of LONG and SHORT means the sale.
Why do not we apply what we learned is now trading on a margin?Know that there is no difference between a commodity to trade in the traditional manner, and to trade on a margin of only you are in the margin will be paid only a fraction of the value of the item that Sttajer.To go back to the example of the former and we'll auto trading margin in the case of emerging market and the market bearish.Remember that we are dealing with the agency will deduct the amount of $ 1000 margin for each user to decide to trade in a car, remember that our account with the company is 3000 $.In the case of emerging marketSuppose that the price per car is $ 10,000 and assume that we, through our follow-up to the car market and we came to the conclusion that car prices will rise in the coming period, we will consider whether to buy a car in the hope that we can sell at a higher price later.We will buy 1 lot of the Agency of any car we will buy one car where a car valued at Lot = $ 10,000.The agency will auto deduct $ 1000 from our user retrieves the margin after the completion of the process, and will remain in our account is $ 2,000 available margin is the maximum amount that can be lost in this deal.Suppose that after our purchase of the car down car prices to $ 9000, if we sell the car at the current rate we will need to add $ 1000 of our pocket to complete the value of the car which we purchased from the agency at $ 10,000, deducted Agency this amount from our account to make up the difference.But we will not sell and we will wait ..Yes .. Suppose that prices rose quickly and became a $ 12,000 price of the car.If we sell the car at the current rate we will be able to pay the full value of the car and will remain $ 2000 we won two out of the deal.We will decide on the deal and end the Snamr Agency to sell the car at $ 12,000, the agency will implement it and deducted the value of the car is being urged by $ 10,000 and the remaining amount of $ 2000 as profit will it add to our account has yet to re-margin the user.Our will has = $ 5,000.Thus, the profit that we have achieved:Profit = sale price - purchase price= 12000-10000 = $ 2,000In the case of the falling marketSuppose now that the price of the car = $ 10,000, but we and our follow-up of the market we came to the conclusion that car prices will fall in the coming period.We will think the current price to sell a car to re-purchase them at a lower price later.We of course we do not have a car now, so we'll Bagtradha of agency Snamrha cars and sell them immediately in the market at the current $ 10,000.Agency will implement it and be deducted from our account $ 1000 margin user. Whether we sold or bought the car, we started a deal and we are demanding to pay the full value of the car in case of purchase or return the car in case of a sale.Will remain in our account the amount of $ 2,000 available margin, and we are now demanding the return of the car that Aqtrdhanaha.If we assume for selling us the car after car prices rose and the price of the car = $ 11,000.This means that if we decided to buy a car at the current price We will hold the added $ 1000 of our pocket, where we sold the car the amount of $ 10,000 and the car now = $ 11,000 so that we can return to the Agency we need to add $ 1000, deducted this amount from our account with the agency if we decided to actually purchase.But we will not do .. We will wait ..Yes, car prices have fallen and the price of the car = $ 8000, that is if we decided to buy a car now to bring her back to the Agency will pay the amount of $ 8000 and still have $ 2000 of the price that we sold the car in which the gain to us.We will do this and Snamr Agency to buy a car, it will be implemented and the company will pay $ 8000 and $ 2000 will remain will be added to our account has yet to recover the user and the margin will become our expense = $ 5000Thus, the profit that we have achieved:Profit = sale price - purchase price= $ 10,000 $ --8,000 = $ 2,000Thus you see that in the trading margin in the traditional manner Kalmtajerh can always make a profit in the market bullish and bearish The important thing is to believe our expectations.
Exchanges dealing margin
What goods can be traded on a margin?There are countless possible of goods traded on a margin as they buy and sell these goods in the international stock exchanges for each of them:Most important of these goods:Equity StocksGoods CommoditiesCurrency CurrenciesAnd we'll talk about each of them in some detail:
Stock markets Stock market
Markets, the most famous and most forwardAnd stock markets are simply exchanges in which they are buying and selling stocks.Operation is essentially that you open an account with a brokerage firm brokerage, and then you choose the shares on the basis of what you expect the stock price will rise after a period of time, whereupon the request of the brokerage firm that buys you a certain number of shares of this company .. Then wait until it is high shares of this company already sells what you have contributed so you get the profit.Be followed up shares of companies in the stock allocated to it, if the company wishes to buy shares is a U.S. company listed in the New York Stock Exchange Vstracb price of this company in the New York Stock Exchange, though the company that would like to buy shares is a local company in your country Vstracb price of shares of this company in the your local Stock Exchange - Stock Exchange Cairo or Amman or Kuwait, for example - and so on.Of course, is the high and low price of the company's shares, according to the performance of this company, if the performance of the company well will want a lot of people to buy shares and thus will increase the price, and if performance is weak, will want a lot of people to sell shares of this company - to get rid of them - and thus reduce the price of shares of this company.In order to achieve profit in trading the stock market Vmanmtk very clear:Is that looking for a company expects in the near future - or run - the price of shares purchased will rise whereupon now and wait some time if you expect stock prices will rise is true of this company already, then will sell the purchased shares at a higher price and thus achieves a profit.But how can you expect that the price of a company's shares will rise or not?This is the crux of the matter ..!!The expectation of this study need to be accurate for many things difficult to talk about here, and this analysis is the company's performance and the performance of the State of the economy, this company and a lot of other things ...What concerns us here is that learning to share trading can be the traditional route, and so to pay the full value of the shares so owned, and actually sell them in time.He also shares can be traded on a margin to pay a certain part of their value to possess it temporarily, as happened with you in the car the previous example.Would be interested to know that the majority of traders equity deal is not a traditional system and the introduction of margin trading stocks because the margin is, in some cases, complex and different rules and regulations depending on each country.If there is a modern way to trade stocks on a margin called CFD short for inter contract for difference, a method has become widespread in the recent period is characterized by simplicity.What concerns us now is to learn to trade stocks on a margin as possible, although not very common.
Commodities markets for goods
The markets (stock exchanges) in which the sale and purchase of basic goods, such goods:Food: wheat, corn, soybeans, barley ... Etc..Energy resources: crude oil, heating oil, natural gas ... Etc..Industrial minerals: iron, copper, chromium, aluminum ... Etc..Precious metals: gold, silver, platinum ... Etc..Each type of goods the previous market its own goods are traded on a margin so that the product you choose to imagine that the price will rise in the near future, whereupon buy to sell after the price rise actually maintains full profit for you.These goods are sold in the form of units fixed as mentioned above for each commodity unit of their own, for example, a unit of gold equivalent to approximately 16 kg each and a unit called Lott lot.When you buy a "lot" of gold you are buying 16 kg of gold at a price as the hope of selling it later at a higher price, will pay a fraction of the price of this quantity of gold used as a margin to be booked in your name exactly as we mentioned in the example of cars.Will then and now that there are 16 kilograms of gold with your name .. Will follow-up gold prices in the international stock market in gold when you find that the price was high, order a company that deals with the lute, which sells your name the current price the company will implement the order value and deducted lot of gold for your account and add the rest as profit after you return the used margin.But now that gold prices are down more than the price you bought lots of gold meaning it may order the company to sell Lot reserved in your name at the price low, where will compensate the difference in price of the discount from your existing account has, of course you will have freedom to wait perhaps the price is due to rise to no more than the difference between the price when you buy a lot of gold, current price for the amount in the margin available to you as we mentioned, the reason that it makes you feel a loss of sale is the fear of further decline in the price and thus expand the fear of loss.Applies to gold what applies to other commodities, but for each commodity bourse, there is exchange of crude oil and there is exchange of iron .. Etc..Different influences that affect the price of every commodity separately, for example, crude oil price is affected by political changes in the areas of production and international politics, for example, the price of wheat is affected by climatic conditions and production potential in the major exporters of wheat, and so on ..Not be possible for someone to work with all types of goods, but to be specialization in the field of trade is limited because the study of the movement of a commodity and therefore knowledge of the possibility to decrease or increase price of a commodity need a lot of study and follow-up and experience in the market for this commodity.Commodity markets are traded mostly on a margin, but in a special way called derivatives derivatives (forward sales and options futures options), a method is difficult to explain here, which is beyond the scope of this book.What concerns us to know is that there are many goods can be traded on a margin completely Kaloslob we talked about in the example of cars.
Currency markets Currency market
It is the largest stock exchanges in the world at all ..!!Where is the sale and purchase of one country's currency against the currency of another country to pay ..For example, where to buy the U.S. dollar to pay the single European currency (Euro), or vice-versa any purchase euro-dollar pay interview.Or buy the U.S. dollar to pay the Japanese yen, or vice versa.Or buy the U.S. dollar to pay the pound sterling, or vice versa.Or buy the U.S. dollar to pay the CHF interview, or vice versa.Or buy any currency, and payments for other currency as a price to it.The profit is obtained exploiting minor differences between the prices of currencies, a simple difference in most of the time, but it can turn into huge profits when they are buying and selling large amounts of money.If you need large sums of money to take advantage of this market .. Is not it?Not .. Not the case ..!!With margin trading system will be able to buy and sell very large amounts of currencies for the payment of a fraction of margin user will retain the full profit to you as if you have large sums of money actually.Provide trading currencies great opportunity for enormous profits and quickly can not be obtained in any other area of investment.Characterized by trading currencies on margin from other trading a lot of benefits that suit the average person with limited resources and limited experience in the economic sphere.For these reasons and others, we devote the rest of this book to let you know the foundations to engage in this area is very exciting and lucrative that the best one to deal with him, we will talk in detail about everything you need to become a trader in speculation in the prices of international currencies.This might be a moment is a moment in your career ..!!Before turning to that we will continue to talk in detail about the types of stock markets and how to get the profits from trading in general, which helps you to understand the topic more easily and accurately.
Margin trading and the types of exchanges
Know that there are a lot of goods are bought and sold among the people, institutions and countries, of these goods: stocks, bonds, commodities and currencies.And know that each commodity market where he will meet your interested in this item and share bought and sold, and where the price of the goods determined on the basis of the law of supply and demand, supply and demand.Valslap which increases demand for the supply of high price, and commodity supply, which increases the demand for low price.This is called market: stockAnd stock exchanges exist in all countries of the world, and each stock exchange and its field of specialization.The thing that concerns us to know that the stock market comes of two types:Direct exchange Exchange exchangesStock exchanges across the networks Over the counter (OTC)What is the difference between the two types?
Had a tremendous development of communication technology, programming a key role in the development of the Internet and spread around the world.This has had a major role in bringing about a radical change in a lot of things economic, cultural and even political.The Internet now is the "network of networks" that links between people of differing cultural backgrounds of their countries and gain a human can not do without him, but increasingly rely on one day behind the day.And already trading in the stock exchanges of the most economic advantage of the spread of the Internet.Where one can buy and sell any type of goods, from anywhere in the world and in any exchange wishes.All one needs is a computer and an Internet connection ..!!Whether you want to trade stocks or commodities or currencies, The Internet has become the main venue and safe to do so.How are traded on the stock markets through the Internet?Which was the type of item you want to trade in, you can not do so only through the company will be the mediator between you and the stock market that deal in them, one can not generally go to the Stock Exchange immediately and begin buying and selling directly, but is done by private companies and licensed and highly experienced called brokerage Brokerage firms. which will implement the buy and sell orders, which order and doing a lot of other services to you.The process is essentially as follows:
In the past, dealing between you and the brokerage company is by telephone or by using fax, decide when to buy shares of a company, for example you are connecting up with the brokerage firm and ask them to do to buy the required quantity of the shares of this company at the price determined.Now, as a result of the evolution of the Internet bringing the deal between you and the brokerage firm is a special program by the platform to get to him from the brokerage firm you download and download to your computer.When you open an account with the brokerage company that the company you choose will ask you to download the software that you own on your computer and give you a password you will use your own password to connect to the brokerage company securely.This program will save you a direct and immediate connection between your computer and which will be connected to the Internet and the brokerage company in which you can select buy and sell orders and view your account and previous operations that you have made .. Etc.Characterized these programs as easily as strong and clear and it is not in need of special experience in the computer or the Internet to deal with it and is designed primarily for the use of the average person with limited experience in the computer, and will always find complete instructions on how to use these programs from the brokerage company that deals with it. And we'll talk about that later.We have provided these capabilities, which were among the dreams a few years ago an opportunity for many people to deal with brokerage firms may be at the other end of the world without the need to comply with the companies in your country, as was the case in the past, giving more room for choice and sparked competition among companies mediation to provide better services and to reduce the costs of the stores required to pay for these services.And now ..After becoming familiar with a lot of information on the mechanism of trading stock markets in general and the principles of margin trading system. We can now move to the second and main part of this book, the part of the relevant trading currencies on a margin, which will be after you read and you understand what it is eligible to begin to go into practice in this exciting world.__________________
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