Forex Investment

Forex stands for foreign exchange. Forex can be called an investment because it can generate huge profits, but also has a very big risk. Trader can conduct buy / sell certain leverage as 1:50 to 1: 100, 1: 200, 1: 400.

MARGIN
Funds owned by the customer that can be used in the forex transaction. Margins can be USD GBP or other currency.

SPREAD
Spread is the difference of the value of buying and selling. Spread has units of pips.

BUY / SELL
Buy / sell an action that can be taken by traders to the currency exchange rate movements.
example:
Trader A buys EURO (EUR-USD with a spread of 5 pips on the company P) worth 1.1831. the time value of 1.1841 A trader sells the Euro, so that Trader A gain 5 dollars. Calculation (1.1841-1.1831) -5pip = 5

LEVERAGE
Leverage has a great sense of transactions that can be done in excess of capital (margin)
example:
- Company A permit customers to conduct forex transactions with 1:50 leverage. Have meaning if the customer has a margin of Rp 1,000,000, then it can do the maximum transaction Rp. 50,000,000 (fifty times greater than the value of the margin)
- Company C to allow customers to conduct forex transactions with a leverage of 1: 200.
Have meaning if the customer has a margin of Rp 1000.000, it can do a maximum transaction Rp. 200,000,000 (two hundred times greater than the value of the margin)

MARGIN CALL
Margin call is a warning / call for adding margins. This happens because the available margin is almost insufficient in survival of the transaction buy / sell

WITHDRAWAL
Withdrawal is a withdrawal by customers of the balance (margin) to be cashed. Customers can make a withdrawal by following the rules in accordance with the provisions of the company