How does the currency market Forex: Mardzhin and Key Positions

To you good at one thing, you must be aware of the principle of its work, the same rule applies to foreign markets. One of the main principles of Forex market mardzhin trade. English comes from the margin trading, margin means the margin / izlishak / reserve money (bel. Translation). Mardzhin marketing idea is to enable ordinary people to be able to make bigger deals in the market, this is by using our forex broker - which "takes your money, the brokers set different mardzhin, but usually it is 1%.

Mardzhin of 1% means that you ensure that only 1 percent in the transaction, for example if you want to buy 10 000 need only $ 100. This makes the forex market so attractive to people seeking greater return on investment. Certainly major gains as the opposite is not excluded and people controlled by emotions rather than common sense is more likely.

Mardzhin trade is a modern bar, which allows the ordinary man to make a deal worth 100 edenitsi currency and ensure only 1.
Trading takes place on the holding of two positions - long and short.

Long position - When you buy a certain amount of currency in order to benefit from its potential to increase another.

Short position - When you expect the price of a currency to cut to another.

To make it more clear, here's an example:

In forex trading is done in the purchase and sale of one currency to another - there currency pairs, one of the most traded was USD / JPY

Let's say you choose to trade with USD / JPY and believe the dollar will rise against the yen, buying dollars and find a long position. If after a period of time the dollar has increased against the yen - you closing long position you have open by selling dollars, prior to which time you bought as the dollar rose against the yen now certain amount of dollars can buy more yen, where is the profit you.

And vice versa - if you are not considered well poevtinee dollars to yen when you close your position you need to do the opposite at the opening of its operation - to buy yen with dollars already own, with the amount of dollars you will buy fewer yen - from where comes your loss.

Example of a short position: If you think the dollar will not rise against the Japanese yen, you buy or sell dollars yen (same f) and opening a short position.

Therefore there are currency pairs and say foreks trade takes place under a purchase and selling of another currency.