It is a question easy to answer ..When you trade as a commodity, 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 only if the price of a commodity to sell us more than our purchase price to them.On the basis of a simple equation: profit = sale price - purchase priceWe buy at one price and sell at a higher price .. Thus achieved a profit.Must before we buy a commodity for trading to expect the 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 where prices are rising day after day.We control the movement of prices and when we expect that the price of a commodity has become a rising that is, they rise day after day, we buy and then wait until the price rises already Venabieha and we get a 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 go up?Of course, it would be foolish to buy a car now, because we find that the price will fall after days, if we sold we will suffer from the loss.If the price of the car is $ 10,000, but we expect in the coming days that the price will drop to $ 8,000, it would be foolish to buy it at $ 10,000 because we find that the price became $ 8000 a few days after, if we sold at that price we will suffer a loss of $ 2000.If .. We can not begin to buy only when we expect that prices will rise and markets on the rise.This issue of the obvious might wonder why stress it?This is 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 market price now is $ 10,000If car prices and a drop in your car after a few days the price will drop to $ 8,000, how can this be profitable?Simply will sell your car now, before the low price at $ 10,000 and put in your pocket this amount, wait until the price falls to $ 8,000 and then you buy at this price.What result?The result is that your car returned to you along with the profit of $ 2000.Has sold the amount of $ 10,000, then prepared to buy any amount of $ 8,000 that you prepared your car and with a profit of $ 2000 ..!!This means that you are able to profit from declining market completely Kthakiqk to profit from the emerging market.With one difference ..You are in the emerging market (ie, where prices are rising day after day) began the deal to buy and then sell Onhiha.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 then Onhiha purchased.I sold the car at $ 10,000 and bought again at $ 8,000 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 rookie started the purchase and sale of finished, in the market started declining and the sale of finished buying.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 they go down already.In both cases, the purchase price will be less than the sale price, It is no different but the order to do the deal.
It is interesting that in all financial markets, called the term "bull market" Bullish market rising and the "market Bear" Bearish market downward, in the financial markets reflects the Ox Bull on the forces of demand, the forces of the procurement drive prices higher and reflects the Bear Bear for the forces of supply, sales force that drive prices lower.
When the demand for a commodity to be great and a lot of traders willing to buy this commodity price of this commodity will rise quickly and said that the market is controlled by the bulls bulls who are paying the price rise.
When the supply is a commodity that big and have a lot of traders willing to sell the item price will drop quickly and said that the market is controlled by the bears, bears who are paying the price decline.
The market for any commodity is an arena for conflict between the bulls and the bears beat the bulls if the result was higher prices and if the Bears beat the result was lower prices.
What we have said is one of the most forms of expression in all financial markets, and often you will meet this expression is interesting in different markets.
Let us take an example: imagine that there is a kind of wood per ton of it now is equal to $ 2,000, but you and your studies of the market reached a conviction that, after a week will increase the price per ton of plywood to $ 3000. How can you make a profit?Answer: You will pay the amount of $ 2000 and buy tons of this wood and wait for your prospect if approved will increase the price per ton to $ 3000 then sell what you have new price and has thus made a profit equal to $ 1,000 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 $ 2,000, but you from your studies of the market reached the conviction 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 $ 2000, when the price drops to $ 1000 per ton Ststraeh again at $ 1000. Thus, the wood is up to you and his profit $ 1000.You might ask an important question ..How do I sell wood and I do not I own?Well .. Stguetrdah ..When reached to the conclusion that the price of wood will drop after a period of time, will go to a timber merchants and ask him to lend tons of wood to bring it back to him after a week, for example ..If approved would take tons of wood, which borrowed and run it to market and sell them at $ 2000, now you have $ 2000 but the demands to return tons of wood to a trader who are lending you to him.Well wait for some time and when the price drops to $ 1000 per ton as expected will go to the market and buy tons of wood, the amount of $ 1,000 and then return it to the dealer, leaving you $ 1000 net the gain for you.What if the price of wood instead of going 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 for a price of $ 3,000 but does not have to have only $ 2000, if you must add from 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 prices fall 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 to be sold by the price at which the item is higher than the price you bought it.From this example shows you that the profit can be achieved in the emerging market and the market downward. The important thing is to believe your prospect.
In the financial markets LONG term called when you start the deal to buy The term SHORT when you start to sell the deal.
You can think of that means LONG SHORT purchase and sale of means.
Why do not we apply what we have learned is now trading on a margin?Know that there is no difference between a commodity that trades in the traditional manner and that trading on a margin only in the margin you will pay only a fraction of the value of the item which Sttajer.To go back to the example of the previous car and we'll trading margin in the case of emerging market and the market downward.Remember that we are dealing with the agency will deduct the amount of $ 1000 margin for every car user decide to trade it, and 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 have come to the conclusion that car prices would 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.Will buy 1 lot of agency cars we will buy any car, and one where the Lout = car worth $ 10,000.The agency will auto deduct $ 1,000 from our account user retrieves the margin after the completion of the process, and will remain in our account $ 2,000, a margin available to 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 $ 1,000 from Jebena 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 have risen rapidly and the price of car $ 12,000.If we sell the car at the current rate we will be able to pay the full value of the car will remain $ 2,000 and won two of the deal.We will decide the deal Finish Snomr Agency to sell the car at $ 12,000, the agency will implement it and deducted the value of the car are being urged by a $ 10,000 and the remaining amount of $ 2,000 as profit will it add to our account has yet to re-margin the user.Would be to have our account = $ 5000.Thus, the profit that we have achieved:Profit = selling price - purchase price= 12000-10000 = $ 2,000In the case of the falling marketSuppose that the price of the car now = $ 10,000, but we and our follow-up of the market we have to believe that car prices will fall in the coming period.We will consider the sale of a car at the current price for the re-purchase them at a lower price later.Of course, we have very car now, so we'll Bagtradha of agency Snomrha cars and sell them immediately in the market at the current $ 10,000.Agency will implement it at our expense and deducted from the $ 1,000 margin the user. Whether we sold or bought the car we started and we are demanding a deal 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 Aguetrdhanaha.If we suppose to sell us the car after car prices and the price of car = $ 11,000.This means that if we decided to buy a car at the current We will hold the added $ 1,000 of Jebena 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, will be 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 car = $ 8,000, which, if we decided to buy a car now to bring her back to the Agency will pay the amount of $ 8,000 and still have $ 2,000 of the price that we sold the car in which the gain to us.We will do this and Snomr Agency to buy a car, it will be implemented and the company will pay about $ 8000 will remain $ 2,000 will be added to our account has yet to recover the user and the margin will be at our expense = $ 5,000Thus, the profit that we have achieved:Profit = selling price - purchase price$ 10,000 = $ --8,000 = $ 2,000You see, in the trading margin in the traditional manner Kalmtajerp can always make a profit in bullish and bearish market and the important thing is to believe our expectations.
Stock exchange dealing system 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:Stocks SharesCommodities CommoditiesCurrency CurrenciesAnd we'll talk about each of them in some detail:
Stock market Stock market
It is the most famous and most markets aheadAnd equity markets are simply stock exchanges in which they are buying and selling shares of companies.The process is essentially that you open an account with a brokerage firm brokerage, then you choose a company's shares on the basis that you expect the stock price will rise after a period of time, whereupon the request of the brokerage company that buys you a certain number of shares of this company .. And then wait to be high shares in the company already sells what you have contributed so you get the profit.Is the follow-up shares of companies in the stock allocated to it, if the company that would like 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, although the company would like to buy shares is a local company in your country Vstracb price of the shares of this company in 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 therefore will increase the price, and if performance is poor will want a lot of people to sell shares of this company - to get rid of them - and thus reduce the price of the shares of this company.In order to achieve profit in trading the stock market and your task is very clear:Is looking for a company that you expect in the near future - or remote - that the prices of shares will rise, whereupon buy now and wait some time if your guess is correct stock prices would rise this company really, then what will sell the purchased shares at a higher price and thus make money.But how can you expect that the price of shares of a company will rise or not?This is the crux of the matter ..!!Expectation of this process need to be careful study of the 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 you know that the share trading can be the traditional route, so that pay the full value of the shares and thus actually owned and then sold in a timely manner.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 the stock traders are dealing with the traditional system and not because of margin trading stocks on a margin in some cases is complex and different rules and regulations according to each country.If there is a modern way of trading stocks on a margin called CFD short for buyers contract for difference which way are more prevalent in the recent period is characterized by simplicity.What is important to learn now that trading stocks on a margin as possible, although not too common.
Commodities Markets
It markets (stock exchanges) in which they are buying and selling commodities, these commodities: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 former market of its own, commodities are traded on a margin so as to choose a good think that the price will rise in the near future, whereupon buy to sell after the price rise actually maintains a 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 unit is called a lot lot.When you buy a "lot" of gold that you BUYS 16 kg of gold at what the hope to sell later at a higher price, will pay a fraction of the price of this quantity of gold margin a user to be booked in your name exactly as stated in the example of cars.Will and then it became, there are 16 kilograms of gold with your name .. Will follow up the gold prices in the international exchange of gold when you find that the price was high, order a company that deals with that Pluto, which sells your name at the current price the company will implement the order and deducted the value of the Lute of gold and add the rest as profit for your account after you re-used margin.But The price of gold down more than the price at which you bought the lot of gold meaning it may order the company to sell croaker reserved in your name at the price low, where will be compensated for the price difference of the discount from your existing account has, of course, you will have freedom to wait perhaps the price is up to the height should not exceed the difference between the purchase price for the lot of gold and current price for the amount in the margin available to you as we mentioned, the reason that drives you have for sale is the fear of loss of a further decline in price and thereby expand the fear of loss.Applies to gold as it applies to other goods, 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 each commodity separately, for example, crude oil price is affected by political changes in the areas of production and international politics The price of wheat for example, are affected depending on climatic conditions and production potential in the major exporters of wheat and so on ..Can not be a person that works with all types of goods, but to be specialization in the trading area of study is limited because the movement of a commodity and therefore know that the possibility of falling or rising price of a commodity that you need a lot of study and follow-up and experience in the market for this commodity.Commodity markets are trading mostly in the margin, but in a special way called derivatives derivatives (forward sales and options futures options) which is the way hard to explain here and is outside the scope of this book.What is important to know is that there is a lot of goods can be traded on a margin just as the manner that we talked about in the example of cars.
Currency market Currency markets
It is the largest financial exchanges in the world at all ..!!Where is the sale and purchase of one country's currency against the payment of another country's currency ..For example, where to buy the U.S. dollar to pay the single European currency (Euro), or the opposite, ie buy the euro to pay the U.S. dollar an 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 purchase of any currency and payments for other currency as a price to it.The profit is obtained exploiting minor differences between the prices of currencies, which are simple differences 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?No .. Is not the case ..!!With margin trading system will be able to buy and sell very large amounts of currency against payment of a fraction of margin user will retain the full profits from you as if you have such large amounts of money actually.Provide an opportunity currency trading does not compensate for the enormous profits and very quickly can not be obtained in any other area of investment.Featuring currency trading on margin from other trading a lot of features that fit the average person with limited resources and limited experiences in the economic sphere.For these reasons and others, we devote the rest of this book to let you know the foundations of entering this exciting field and very lucrative that the best one to deal with it, 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 defining moment in your career ..!!Before turning to that we will continue to talk in detail about the types of stock exchanges and how to get profits from trading in general, which helps you to understand the subject more easily and accurately.
Margin trading system 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 you know that each commodity market where he will meet your interested in this item and share sale and purchase, and where the price of the commodity is determined on the basis of the law of supply and demand, supply and demand.Valslap which increases the demand on the supply price rises, and the product that increases the supply for the demand for low price.These are called markets: stock marketsAnd stock exchanges exist in all countries of the world, each with its specialization and exchange.One thing that would be interested to know that the stock market comes of two types:Stock exchange Exchange DirectStock exchanges across the networks Over the counter (OTC)What is the difference between the two types?The difference is that stock exchanges are the direct exchange with a central location to be specified for those who wants to deal it to go to him to sell or buy or through the presence of the representative of the buying and selling on his behalf.Such as the New York Stock Exchange, a place located in New York City and that is where the sale and purchase of shares of American companies.Like the London Stock Exchange, the place is located in the City of London and that is where the sale and purchase of shares of British companies.And such as the Kuwait Stock Exchange, a place located in Kuwait City, which is where the sale and purchase of shares of Kuwaiti companies.
It is interesting that in all financial markets, called the term "bull market" Bullish market rising and the "market Bear" Bearish market downward, in the financial markets reflects the Ox Bull on the forces of demand, the forces of the procurement drive prices higher and reflects the Bear Bear for the forces of supply, sales force that drive prices lower.
When the demand for a commodity to be great and a lot of traders willing to buy this commodity price of this commodity will rise quickly and said that the market is controlled by the bulls bulls who are paying the price rise.
When the supply is a commodity that big and have a lot of traders willing to sell the item price will drop quickly and said that the market is controlled by the bears, bears who are paying the price decline.
The market for any commodity is an arena for conflict between the bulls and the bears beat the bulls if the result was higher prices and if the Bears beat the result was lower prices.
What we have said is one of the most forms of expression in all financial markets, and often you will meet this expression is interesting in different markets.
Let us take an example: imagine that there is a kind of wood per ton of it now is equal to $ 2,000, but you and your studies of the market reached a conviction that, after a week will increase the price per ton of plywood to $ 3000. How can you make a profit?Answer: You will pay the amount of $ 2000 and buy tons of this wood and wait for your prospect if approved will increase the price per ton to $ 3000 then sell what you have new price and has thus made a profit equal to $ 1,000 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 $ 2,000, but you from your studies of the market reached the conviction 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 $ 2000, when the price drops to $ 1000 per ton Ststraeh again at $ 1000. Thus, the wood is up to you and his profit $ 1000.You might ask an important question ..How do I sell wood and I do not I own?Well .. Stguetrdah ..When reached to the conclusion that the price of wood will drop after a period of time, will go to a timber merchants and ask him to lend tons of wood to bring it back to him after a week, for example ..If approved would take tons of wood, which borrowed and run it to market and sell them at $ 2000, now you have $ 2000 but the demands to return tons of wood to a trader who are lending you to him.Well wait for some time and when the price drops to $ 1000 per ton as expected will go to the market and buy tons of wood, the amount of $ 1,000 and then return it to the dealer, leaving you $ 1000 net the gain for you.What if the price of wood instead of going 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 for a price of $ 3,000 but does not have to have only $ 2000, if you must add from 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 prices fall 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 to be sold by the price at which the item is higher than the price you bought it.From this example shows you that the profit can be achieved in the emerging market and the market downward. The important thing is to believe your prospect.
In the financial markets LONG term called when you start the deal to buy The term SHORT when you start to sell the deal.
You can think of that means LONG SHORT purchase and sale of means.
Why do not we apply what we have learned is now trading on a margin?Know that there is no difference between a commodity that trades in the traditional manner and that trading on a margin only in the margin you will pay only a fraction of the value of the item which Sttajer.To go back to the example of the previous car and we'll trading margin in the case of emerging market and the market downward.Remember that we are dealing with the agency will deduct the amount of $ 1000 margin for every car user decide to trade it, and 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 have come to the conclusion that car prices would 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.Will buy 1 lot of agency cars we will buy any car, and one where the Lout = car worth $ 10,000.The agency will auto deduct $ 1,000 from our account user retrieves the margin after the completion of the process, and will remain in our account $ 2,000, a margin available to 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 $ 1,000 from Jebena 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 have risen rapidly and the price of car $ 12,000.If we sell the car at the current rate we will be able to pay the full value of the car will remain $ 2,000 and won two of the deal.We will decide the deal Finish Snomr Agency to sell the car at $ 12,000, the agency will implement it and deducted the value of the car are being urged by a $ 10,000 and the remaining amount of $ 2,000 as profit will it add to our account has yet to re-margin the user.Would be to have our account = $ 5000.Thus, the profit that we have achieved:Profit = selling price - purchase price= 12000-10000 = $ 2,000In the case of the falling marketSuppose that the price of the car now = $ 10,000, but we and our follow-up of the market we have to believe that car prices will fall in the coming period.We will consider the sale of a car at the current price for the re-purchase them at a lower price later.Of course, we have very car now, so we'll Bagtradha of agency Snomrha cars and sell them immediately in the market at the current $ 10,000.Agency will implement it at our expense and deducted from the $ 1,000 margin the user. Whether we sold or bought the car we started and we are demanding a deal 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 Aguetrdhanaha.If we suppose to sell us the car after car prices and the price of car = $ 11,000.This means that if we decided to buy a car at the current We will hold the added $ 1,000 of Jebena 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, will be 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 car = $ 8,000, which, if we decided to buy a car now to bring her back to the Agency will pay the amount of $ 8,000 and still have $ 2,000 of the price that we sold the car in which the gain to us.We will do this and Snomr Agency to buy a car, it will be implemented and the company will pay about $ 8000 will remain $ 2,000 will be added to our account has yet to recover the user and the margin will be at our expense = $ 5,000Thus, the profit that we have achieved:Profit = selling price - purchase price$ 10,000 = $ --8,000 = $ 2,000You see, in the trading margin in the traditional manner Kalmtajerp can always make a profit in bullish and bearish market and the important thing is to believe our expectations.
Stock exchange dealing system 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:Stocks SharesCommodities CommoditiesCurrency CurrenciesAnd we'll talk about each of them in some detail:
Stock market Stock market
It is the most famous and most markets aheadAnd equity markets are simply stock exchanges in which they are buying and selling shares of companies.The process is essentially that you open an account with a brokerage firm brokerage, then you choose a company's shares on the basis that you expect the stock price will rise after a period of time, whereupon the request of the brokerage company that buys you a certain number of shares of this company .. And then wait to be high shares in the company already sells what you have contributed so you get the profit.Is the follow-up shares of companies in the stock allocated to it, if the company that would like 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, although the company would like to buy shares is a local company in your country Vstracb price of the shares of this company in 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 therefore will increase the price, and if performance is poor will want a lot of people to sell shares of this company - to get rid of them - and thus reduce the price of the shares of this company.In order to achieve profit in trading the stock market and your task is very clear:Is looking for a company that you expect in the near future - or remote - that the prices of shares will rise, whereupon buy now and wait some time if your guess is correct stock prices would rise this company really, then what will sell the purchased shares at a higher price and thus make money.But how can you expect that the price of shares of a company will rise or not?This is the crux of the matter ..!!Expectation of this process need to be careful study of the 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 you know that the share trading can be the traditional route, so that pay the full value of the shares and thus actually owned and then sold in a timely manner.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 the stock traders are dealing with the traditional system and not because of margin trading stocks on a margin in some cases is complex and different rules and regulations according to each country.If there is a modern way of trading stocks on a margin called CFD short for buyers contract for difference which way are more prevalent in the recent period is characterized by simplicity.What is important to learn now that trading stocks on a margin as possible, although not too common.
Commodities Markets
It markets (stock exchanges) in which they are buying and selling commodities, these commodities: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 former market of its own, commodities are traded on a margin so as to choose a good think that the price will rise in the near future, whereupon buy to sell after the price rise actually maintains a 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 unit is called a lot lot.When you buy a "lot" of gold that you BUYS 16 kg of gold at what the hope to sell later at a higher price, will pay a fraction of the price of this quantity of gold margin a user to be booked in your name exactly as stated in the example of cars.Will and then it became, there are 16 kilograms of gold with your name .. Will follow up the gold prices in the international exchange of gold when you find that the price was high, order a company that deals with that Pluto, which sells your name at the current price the company will implement the order and deducted the value of the Lute of gold and add the rest as profit for your account after you re-used margin.But The price of gold down more than the price at which you bought the lot of gold meaning it may order the company to sell croaker reserved in your name at the price low, where will be compensated for the price difference of the discount from your existing account has, of course, you will have freedom to wait perhaps the price is up to the height should not exceed the difference between the purchase price for the lot of gold and current price for the amount in the margin available to you as we mentioned, the reason that drives you have for sale is the fear of loss of a further decline in price and thereby expand the fear of loss.Applies to gold as it applies to other goods, 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 each commodity separately, for example, crude oil price is affected by political changes in the areas of production and international politics The price of wheat for example, are affected depending on climatic conditions and production potential in the major exporters of wheat and so on ..Can not be a person that works with all types of goods, but to be specialization in the trading area of study is limited because the movement of a commodity and therefore know that the possibility of falling or rising price of a commodity that you need a lot of study and follow-up and experience in the market for this commodity.Commodity markets are trading mostly in the margin, but in a special way called derivatives derivatives (forward sales and options futures options) which is the way hard to explain here and is outside the scope of this book.What is important to know is that there is a lot of goods can be traded on a margin just as the manner that we talked about in the example of cars.
Currency market Currency markets
It is the largest financial exchanges in the world at all ..!!Where is the sale and purchase of one country's currency against the payment of another country's currency ..For example, where to buy the U.S. dollar to pay the single European currency (Euro), or the opposite, ie buy the euro to pay the U.S. dollar an 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 purchase of any currency and payments for other currency as a price to it.The profit is obtained exploiting minor differences between the prices of currencies, which are simple differences 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?No .. Is not the case ..!!With margin trading system will be able to buy and sell very large amounts of currency against payment of a fraction of margin user will retain the full profits from you as if you have such large amounts of money actually.Provide an opportunity currency trading does not compensate for the enormous profits and very quickly can not be obtained in any other area of investment.Featuring currency trading on margin from other trading a lot of features that fit the average person with limited resources and limited experiences in the economic sphere.For these reasons and others, we devote the rest of this book to let you know the foundations of entering this exciting field and very lucrative that the best one to deal with it, 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 defining moment in your career ..!!Before turning to that we will continue to talk in detail about the types of stock exchanges and how to get profits from trading in general, which helps you to understand the subject more easily and accurately.
Margin trading system 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 you know that each commodity market where he will meet your interested in this item and share sale and purchase, and where the price of the commodity is determined on the basis of the law of supply and demand, supply and demand.Valslap which increases the demand on the supply price rises, and the product that increases the supply for the demand for low price.These are called markets: stock marketsAnd stock exchanges exist in all countries of the world, each with its specialization and exchange.One thing that would be interested to know that the stock market comes of two types:Stock exchange Exchange DirectStock exchanges across the networks Over the counter (OTC)What is the difference between the two types?The difference is that stock exchanges are the direct exchange with a central location to be specified for those who wants to deal it to go to him to sell or buy or through the presence of the representative of the buying and selling on his behalf.Such as the New York Stock Exchange, a place located in New York City and that is where the sale and purchase of shares of American companies.Like the London Stock Exchange, the place is located in the City of London and that is where the sale and purchase of shares of British companies.And such as the Kuwait Stock Exchange, a place located in Kuwait City, which is where the sale and purchase of shares of Kuwaiti companies.
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