Open and close the deal

You learn in the currency market you can get a profit from trading, regardless of the fact that the currency market is going up or down.The currency that you expect will start to rise low purchase price and expects that price to go up to sell the high price and get the difference as profit.The currency which it expects to fall will begin selling the high price and wait for price to drop to re-purchase price low and keep the difference as profit.The process begins when either selling or Hraoua say: You have opened the package.When you have finished the process or selling Hraoua say: You have closed the deal.And you'll begin to deal will not be able to tell whether you've won or lost until the deal ends.For example: if we assume that you opened the package - launched - buy 1 lot euro, based on your prospect that the euro will rise.After you buy the euro will not know whether you win or lose up to sell the euro, which you have closed - end - deal.
 If I sold at a higher price than the purchase price to be profitable and that I sold at a lower price than the purchase price to be a loser.The deal, which ends begin to sell to buy.In terms of financial markets, we say:The deal, which closed the sale of open purchase.After that you can close the deal to know your profit or loss.Similarly, if we assume that you opened the package - initiated - to sell 1 lot euro, based on your prospect that the euro will decline.After that sell the euro will not know whether you win or lose until you buy the euro, which you have closed - end - deal.
 If purchased at a lower price of the sale price to be profitable if purchased at a higher price of the sale price to be a loser.The deal, which ends begin to sell to buy.In terms of financial markets, says:The deal, which closed the sale of open purchase.So you can understand that open and close the deal as follows:Open the deal meant the beginning of the process, whether the sale or purchase of currency exchange.And close the deal means the end of the process, whether the sale or purchase of currency exchange.Enter and exit pointWhen you open a lot of deal to buy two pounds and at a price, for example GBP / USD = 1.5245.Then close the deal to sell it a price of GBP / USD = 1.5280.Say that the point of entry is 1.5245 and 1.5280 is the point of exit.When you open the package and sell yen at 1 lot USD / JPY = 123.52Then close the deal at a price you buy USD / JPY = 123.70.Say that the entry point is 123.52, and the exit point is 123.70.Enter point: is the price at which open when the transaction.Exit point: is the price when the transaction closes.Before you open a transaction will not care about high or low currency rates.But after a deal to open Hraoua or a sale, the more you care about is what currency ..!!Because depending on the price movement will be determined as if you are a winner or loser.Therefore, we say that the price at which open when the transaction is called the point of entry, because you'd be inside of the market affected by what happens there.Therefore we say that the price when the transaction closes called the exit point, then you will not be out of the market then you care about the direction of price movement.
 profit & loss and floating profit & loss
 We have said before that you can not know whether you've won or lost as long as you did not close the deal.When you open a deal to buy a currency that you can not learn as a result of this transaction until you close the deal and sold it.For example: if you buy 1 lot at the pounds on the basis that you expected it to increase.After the purchase price of the pound has started to decline 10 points instead of rising.You are at this moment be losing $ 100 on the assumption that the point value = $ 10.In other words you if you sell at the moment and the current market price, which less than your purchase price of the pound by 10 points will be your loss = $ 100.Suppose that the price has dropped 30 points from the purchase price.You are at this moment be losing $ 300.But it's not a real loss.As long as you did not close the deal did not sell croaker that you have your loss is called Floating loss.Any loss is not settled yet as long as you did not sell what you have than one pound.It will not turn into a real loss only after you actually sell.As long as you did not sell everything is possible, it was more than a low price to 60, 70.80 points, may be due to price rise and sudden manner.Even if we assume that after that I bought a lot of Fairy price rose 10 points from his purchase price.This means that you are winners in this moment $ 100 if I decided to sell the current market price in excess of the purchase price will be 10 points profit = $ 100If the price rose 50 points on the purchase price.You will be profitable at this moment $ 500 if decided to sell at the current price.But it is not a real profit.As long as you did not close the deal did not sell that you have a meager profit is called the Floating profit.It will not turn into a real profit until you actually sell.As long as you did not sell everything is possible, may increase the price rise to 70, 80 100 points, may be due to the price drop suddenly.Thus, the deal is resolved only when close, and not before.

 The nature of price movementOf the things that will immediately grasp is that the nature of the movement of exchange rates are progressive and not continuously.This applies to the movement of exchange rates as applied to the movement of stock prices and all goods are traded in financial markets.What do we mean by that?We mean that even if the price of a currency will rise 100 points in 5 hours, for example, it will not rise beyond the hour and hour and minute and a minute behind, but the local legal height of a lot of dips ..!!But bulk up.If we assume that the euro is now EUR / USD = .9800, and was expected to rise 100 points, or will the euro EUR / USD =. 9900 in 5 hours.Even if true, the expected price movement may be as follows:Price now .9800 EUR / USD =Then reduced price for a period of ten minutes to reach EUR / USD = .9780 which is lower than the price a 20-point first floating Vtkon your loss = $ 200 if you had bought 1 lot on the price first.Then rise for half an hour to reach the price to EUR / USD = .9845 which it rose 45 points from first-price and become a floating profit = 450 $.Then reduced to half an hour to reach the price to EUR / USD = .9790. Any dropped 10 points on the price of the first and now consists of floating your loss = $ 100.Then for an hour will rise to up to EUR / USD = .9860 which rose 60 points on the price of the first and the floating profit = 600 $.Then drops to a quarter of an hour to be up to EUR / USD = .9815 and become a floating profit = 150 $ After that was 600 $.Then may be due to the high strength to reach for the price of EUR / USD = .9900 after five hours as we expected.Thus, price movement continues in the low and high hours behind the hour, but that the wholesale rise up to what we expected, was far beyond our expectations.As you can see it is like to climb AC ..!!That is the reason for headache ..!!When you open a transaction often find yourself losing and then become profitable then back to a loser, and then suddenly turn into a big winner ..!!!Thus much of the novices are dismayed when price begins to decline Fajova that the price continues to decline may decide to sell the loss and close the deal quickly to avoid further losses. And thus become a real loss to the loss because they completed the deal and switched them off.But may then return the price to rise and become winners after they were losers.But it is too late after the transaction has closed a loss if they had little patience for their loss turned to gain drift and then managed to close the deal winners rather than losers Iglqoha ..!!It's all depends on your confidence in your prospect If you are aware of the safety of your prospect will not fear something that dropped the price a bit, because you are confident that he will return to rise shortly after.And this would be your guess on the basis of analysis of price movement using the techniques of technical analysis and news, which we will talk about later.It is like a game of snap fingers ..!!Able to win, from the development of abilities and the reasons for the introduction of analysis and risk management techniques ..And win, from the force of the nerves and calm the psychological and self-confidence ...This requires experience and long practice and see .. It is worth the effort it ..Millions in front of you and all you need is to learn how to reap as much as possible ..!!Retracement or CorrectionWhen you follow you for the movement of exchange rates often hear that "a bid to move the currency corrective movement."And this is the nature of natures price movement what does corrective movement?Are the same progressive nature of the movement of the currency in which we talked about, but often within the framework of a broader time frame.For example: if the estimate for the euro to rise within seven days of 820 points, for example, may rise as follows:The first day of 180 points.In the second on 150 points.In the third on 240 points.In a fourth day price drops 120 points.On the fifth day price drops 50 points.On the sixth day the price rises 200 points.On the seventh day rising 220 points.As you can see the total Artfh euro from the first day of the seventh day is equivalent to 820 points. And he was in high daily with the exception of the fourth day and fifth day of the two as the price decreased a little bit before returning to rise later.Called the price movement in the fourth and fifth movement Retracement.Be a movement to reverse the general trend of price movement.You can be perceived as a break and take a breath after the market that have moved strongly in one direction for a period of time to complete the price after him walk again.Of course, this break is not a requirement to be on the fourth day or V may be at any time and no one knows exactly when it can occur, but when the price moves in one direction and for a period of time and hard it is expected a correction in price and as the price remains to walk in its direction without interruption, the more likely to occur near the corrective movement.Why is it important to know this truth about the price?When you know the truth and see that the price of a currency on the rise for several days may consider the purchase of this coin, but when you see that this rise was strong, fast and continuous then it is better to wait a bit before you buy it expecting a correction in the price of the currency to go back and go down a bit before re- height, it would be smart to buy the currency at that moment because you will buy more at a low price.And vice versa in the currency decline rapidly, continuously and will be sustained where the movement of Correction is a bit high for the currency continues to decrease again later.At the current stage does not need to worry too much that did not understand the policies included in this page soon to start practice, you will understand all that very clearly and you'll see for yourself how moving exchange rates and have stated the nature of price movement here for your reference note of them no more, the you can not Mnfem meant by this Flabos Now you will understand everything a little practice!.