Short Selling Strategy in Forex Trade

One of the advantages of forex trading is the existence of investment leverage or two way opportunity, the opportunity to earn profits in both rising prices and conditions are in decline. In conditions of rising prices, the strategy used is the conventional trade, which formerly bought cheaply and then sell it. This is done on the real sector transactions. In forex trading, if the conditions are declining prices, investors can do short selling strategy is to do more first-sale prices are still high with new buy when prices are low / declining. In forex investing, short selling becomes mandatory and job knowledge required as well. Because, precisely this condition that often occurs. Therefore, investors should know the ins and outs of this short selling.

What and how to trade forex with short selling it? In principle, short selling is selling a product or service that is not owned by the seller. Why can happen, someone who does not have an item or service for sale can make the sale? What if the buyer requires the seller to immediately deliver the goods or services? This is where the difference in investing in real sector with invest in forex trading.

In the real sectors such goods market, traders goats, could not sell the goat did not have to buyers. The reason? First, of course, buyers want to see the first form of a goat that will be bought, whether fat, healthy, skinny or what? Second, even if the seller managed to get a goat that would sell, he must buy it first. Third, in the goods market trading occurs on a spot or cash, meaning that payment is made once the transaction.

Cut your losses quickly and let your profits run

This simple concept is one of the hardest concepts to be implemented and this led to the death for most traders. Most traders violate a predetermined plan and take advantage of them before reaching their profit target because they feel uncomfortable sitting in a favorable position. This same type of people will easily sit in the position of the loss, allowing the market to move against them for hundreds of points in the hope that the market will return. In addition, traders who have been exposed to the stop their recurring times only to see the market back at their will, once they come out, they quickly move from stop trade order and with one thing belief that this will always be there. Stop orders are held for the subject, and to stop you from losses exceeding the amount specified in advance! The wrong belief is that each transaction must be profitable. If you have a profit 3 out of 6 transactions then you have to do well. How is it possible you can make money with only half of your trades to be a winner? Quite simply, you allow your profits at the win to turn around and make sure that your loss experience is minimal. Another good strategy is to move the stop loss (points where the transaction would be sold if it went the wrong way) behind the trade to a level where a recall can be accommodated but a reversal will be locked at least get a little advantage.

Development of the World Futures Exchange

Chicago Board of Trade (CBOT) was established in 1848, is the world’s oldest futures exchange. More than 50 options and futures contracts traded by 3600 more members in both the stock exchange trading floor and electronic trading system. On July 9, 2007 CBOT shareholders approve merger plan (merger) with the Chicago Mercantile Exchange “and generates a largest derivatives market in history.” Finally, on July 12, 2007, the CBOT merger or a merger with the CME to form “CME Group.”

HKEx is the holding company of The Stock Exchange of Hong Kong Limited, Hong Kong Futures Exchange Limited and Hong Kong Securities Clearing Company Limited. Founded in 1976, the Hong Kong Futures Exhange Limited is the pioneer of derivatives in the Asia-Pacific region. Stock market provides a diverse and efficient to trade futures and options contracts with a total membership of more than 130 participating organizations, including among others that have been allied with the international financial institutions.

Exchange HKEx derivatives under the auspices of the futures and options market run them through our products with a wide range, including equity indices, stocks and interest rates. HKEx and its branches, HKFE Clearing Corporation Limited and the SEHK Options Clearing House Limited, run a thorough system of risk management with which the members and customers can see the progress of their investments in a more liquid market and regulated by tidy.
Singapore International Monetary Exchange (SIMEX) is a futures exchange in Singapore, founded in 1984. On December 1, 1999, SIMEX finally joined the Stock Exchange of Singapore (SES) to the Singapore Exchange (SGX), is the demutualization and integration of stock exchanges and derivative first time in Asia-Pacific region. Revenue from the Singapore Exchange most of the stock exchange (72%) and stock derivatives (28%).