Important Term Forex Trading 4 : This article is a continuation to the article Forex Trading Term 3 Conditions for currency trading are here to talk about the most important concepts in Forex trading continues as follows:

Our Bank
Banks that are active in the field of international business saw enough money (balance) in foreign currency for international payments execution, whether business (exports and imports of goods and services), as well as the work of international financial markets. Currency exchange is certainly not only the currency, but there are major currencies like the dollar and the pound sterling, euro and Japanese yen.

Usually, most of the money deposited in bank accounts (checking accounts) foreign correspondent bank will be used as an effective function (rest of the work). For example, AmBank Americans have a checking account at the Brit GBP in the UK and the only British bank to make a dollar account AmBank today. In the world of business and bank account AmBank (Brit Bank) Brit Bank (AmBank) supports nostril currency accounts usually definiteness foreign bank account is a foreign bank (correspondent banks).

Close and Reopen Value
Each meeting Forex Trading, traders, and usually the time to work immediately to discuss with colleagues and get a brief introduction to the operating room, "Captain." For cooperation and distributor meetings observed (re) strategies and tactics determine on the following basis:

First, the closing price (closing price) of the other hemisphere. The closing price is the daily exchange rate trading Duba closed financial centers such as New York, London, Brussels, Singapore, Hong Kong and Tokyo. Because of the time difference, there must be a difference between the closing price of financial centers. Closed banks in London and New York when before closing the office and is preparing to open a bank office. Go Jakarta time to start trading is banks in Tokyo and Hong Kong a few hours before the operation. Financial centers must be included as a trend BERU (new trend) can be found in the global foreign exchange market.

Economic and political events of the last second. Under system of floating exchange rates and economic indicators such as interest inflame development, unemployment and balance of payments to be important in determining the exchange rate, can be short and long term. Political factors such as social unrest, and changes in government and military attacks can affect even the "command" of the market.

Third, the net cash position. It should be noted that the Ministry of cinema is not determined solely on the basis of exchange rate on cash flows for a long time. Net cash position continues to change with changes in market prices. For operators who take to the open position (open position) can cause changes in the profit or loss market.

Based on information provided by the teacher distributor Open (Open), depending on the exchange rate of a currency pair is the most important (basic), for example, the value of the dollar against the pound Sterling. Opening price will be calculated and downloaded, you are ready, start trading.

Hard and Soft Currently

Alias ​​current currency (high demand) and the width is in high demand (supply is limited). This nickname is the country's economic strength, which is associated with a large trade surplus with him. This situation in contradiction with soft currencies. Activities that occur in the forex market is not only an exchange (or currency) currency against other currencies. However, it is the country store or convert an existing exchange offer. For example, in Indonesia, it can be difficult to find a bank that serves the plant site Rupee against foreign currencies or the Cuban government of Zaire to find. Or people can not find a bank to sell dollars Nigerian state. But the power of forex (currency), the dollar and the yen, and certainly contained in almost all countries.