Forex trading is an alternative trading system that uses the ups and downs of the value US dollar against other currencies. This trade was agreed by peerintah with the publication of the law of the Republic of Indonesia No. 32 Year 1997 on the Commodity Futures Trading. This law provides opportunities for people to purchase and sale listed in Bappebti institution, and one of them is a forex transaction.
business buying and selling in the alternative trade offers several advantages over conventional buying and selling businesses. Regarding some of the benefits of buying and selling of alternative trading systems include:
1 ?? ? High liquidity
Unlike traditional buying and selling in the market, when there are sellers offer goods or services that are not necessarily there are consumers who are willing to accept the offer (buy). However, sales on the alternative trading system market or purchase mandate has always illiquid due to market maker that received a mandate to buy or sell.
2. ?? ? It does not require a dedicated space (office / store)
When someone start a traditional business will generally confused in choosing a place to open his business. Was considered strategic location, probably near the campus, close to the public service or any other matter. the choice of strategic site will be linked to the cost of rent, instead the more strategic over the lease costs. In the exercise of the activity of buying and selling in the alternative trading system requires no special place or the rent, because business in the alternative trading system uses an online trading technology using a connection Internet via smartphone or computer.
3. ?? ? It does not require workers or employees
Transactions in the alternative trading systems such as Forex trading can be done and done Sediri without the help of others. This means it requires no salary expenses for employees.
4. ?? ? The cost is cheap
Without rent expense and staff salaries, to do business in the alternative trading system, particularly forex trading does not require much capital. This means that the profit is much easier.
5. ?? ? 2-way transaction mechanism
Most conventional businesses began with the stock of goods, or goods of the first generation and may sell these products rarely able to make sales before their goods. It is said to be a one-way transaction. Forex trading in the alternative trading system can execute the mandate to sell before buying transaction. This may occur due to market maker, which means that traders can buy in advance or to mandate sales ahead depends on market developments. This system is called the 2-way transaction mechanism.
As the business of buying and selling in the alternative trading system, the risk of forex trading than traditional business in general, that such a loss. Someone opened a clothing store has a risk of loss when the clothes sold locally or to other risks such as fire and other shops. To avoid the risk of loss, of course, we need risk management to reduce the number of these risks
Part of risk management can be done trader in trading are :.
1. ?? ? Cut loss / delete loss
loss Cut is risk management business immediately by closing the position that there has been at a loss in order to avoid greater losses because to go against the trend.
2. ?? switch
As its name suggests, & ldquo ;? & rdquo ;, switching means is switched, the switch of position losses in opposite positions of the starting position, with the forecast trend when it happens is still ongoing.
3. ?? ? Average
Management Risk Average is achieved by adding a position similar to the position that has been there to find the mean or average. The new position should mencover starting position that was floating loss, so no need to wait quite lucky starting position in search of value, even.
4. ?? ? Lock / cover
Lock or managing risks locking is done by adding an opposite position to the initial position that was floating loss in order to get the funds to not to suffer greater losses. Almost the same to reduce the loss, but still leaves the blocking position due to traders reluctant to lose balance.
Risk management must be applied in trade in order to minimize risk, because basically every business there are risks. The impossibility if we mengabaikaan risk but minimizing risks. A good trader always sensitive to these risks.
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