I have been using lots of functions to create and check my variables and arrays lately. Along these lines, I thought I would take some time to share how the concept of "passing values by reference" works.
Basically, if you are anything like me you are always passing functions values and then having that function "return" a value. While there is nothing wrong with this approach, there is often an easier way to work with values in functions. Besides making values "global", you can also pass a function a value by reference.
Here is the standard way most people would work with a value in a function and then collect the functions return value.
Perşembe
MD5, hashes, passwords, salts and more
1) You need to salt your passwords.
"Assume a user's secret key is stolen and he is known to use one of 200,000 English words as his password. The system uses a 32-bit salt (like md5). Because of this salt, the attacker's pre-calculated hashes are of no value. He/she must calculate the hash of each word with each of 2^32 (4,294,967,296) possible salts appended until a match is found. The total number of possible inputs can be obtained by multiplying the number of words in the dictionary with the number of possible salts:
2^{32} \times 200 000 = 8.58993459 \times 10^{14}
To complete a brute-force attack, the attacker must now compute about 800 trillion hashes, instead of only 200,000. Even though the password itself is known to be simple, the secret salt makes breaking the password radically more difficult." - http://en.wikipedia.org/wiki/Salt_(cryptography)
"Assume a user's secret key is stolen and he is known to use one of 200,000 English words as his password. The system uses a 32-bit salt (like md5). Because of this salt, the attacker's pre-calculated hashes are of no value. He/she must calculate the hash of each word with each of 2^32 (4,294,967,296) possible salts appended until a match is found. The total number of possible inputs can be obtained by multiplying the number of words in the dictionary with the number of possible salts:
2^{32} \times 200 000 = 8.58993459 \times 10^{14}
To complete a brute-force attack, the attacker must now compute about 800 trillion hashes, instead of only 200,000. Even though the password itself is known to be simple, the secret salt makes breaking the password radically more difficult." - http://en.wikipedia.org/wiki/Salt_(cryptography)
PHP Video Tutorials
After several months work I am proud to announce the Code2Design video system is finally up! Featuring 25 videos on HTML, PHP, AutoCAD, and more! Each video is either 640x480 or 800x600 and is avalible to download for private viewing. (Not everyone has DSL in their home.)
The Two videos I recomend the most are PHP Security and Resizing and Sending Images For Email.
PHP security is probably the most advanced video of it's type in the world. It is about 45min long and covers basic attacks like Globals, Includes, and Super Global arrays like $_SERVER and $_GET. More advanced subjects like SQL injection, CSFR, and XSS are covered later in the video. Each attack is not only discussed - but actually shown in action so you can easily follow along.
The Two videos I recomend the most are PHP Security and Resizing and Sending Images For Email.
PHP security is probably the most advanced video of it's type in the world. It is about 45min long and covers basic attacks like Globals, Includes, and Super Global arrays like $_SERVER and $_GET. More advanced subjects like SQL injection, CSFR, and XSS are covered later in the video. Each attack is not only discussed - but actually shown in action so you can easily follow along.
Is this where I should start if I have never used the web?
Actually… no one in the world will EVER ask this question, because no one in the world will ever visit this page until they know something about using the Internet, lol. So *smile, relax and lets get started on this fun adventure.
But be cautious - they all have their non-monetary price!
Personally... I started out with Easyphp. It is a snap to install (it's an .exe file) and will get you running fast. It worked great while I was learning PHP and coding small scripts. Then I shopped around and after looking at many different hosting companies like "BlueHost" and "godaddy" I finally chose 1and1.com for a place on the internet to host my first site. Recently I deleted Easyphp as I needed more power for my advanced scripts and took an old computer and installed XP and WAMP on it so that I can build and test my sites on my own personal network and then upload the files to 1and1. So the choice is yours, just remember that if you install a web server, you need to SECURE it BEFORE YOU GO ONLINE! Otherwise someone might use it to gain control of your PC!
What do I need?
This is a big question and mostly depends on how skilled you are with other aspects of the computer. PHP requires the core interpreter and function libraries that you have to get from www.php.net. No, window's does NOT come ready for PHP programming. (Some Linux distributions do however.) This leaves you with four choices when it comes to setting up the PHP language so that you can start programming.
Install and compile the binary distributions for PHP and/or "Apache" web server on your machine. (Advanced) visit php.net for more information.
Install EasyPHP from EasyPHP.org. (Easy, but only features PHP 4 and has some problems with Advanced Programs/scripts.)
Install WAMP (Windows Apache MySQL PHP) or LAMP (Linux Apache MySQL PHP) on your own machine, or better yet, on some OTHER machine on YOUR network. If you are on windows you can visit wampserver.com and download the newest release. (Intermediate)
The way I Recommend: Buy some web space on a server that supports PHP and MySQL. (about $5-10 dollars a month). I highly recommend 1and1.com. They are like the "walmart" of hosting companies. (The largest in the world) they offer hosting for as low as $2.99 a month for 5 Gigabytes of space and 10 MySQL Databases!!! Don't worry they don't skimp on features ether! (Free Domain and ".htaccess" support!)
After all, if you are learning PHP you are going to be using it anyway... so you might as well buy hosting space and a domain now before the name is taken. If you already have a web site your hosting company may already have PHP install on your server. (Call/Email them to be sure.)If you don't want to pay for web space but want to put a site online I recommend that you look into some free hosting options like 100webspace.com or Dot Geek - or just choose the one that fits you from these lists: PHP Free Hosting List and PHP MySQL Free Hosting List.
Install and compile the binary distributions for PHP and/or "Apache" web server on your machine. (Advanced) visit php.net for more information.
Install EasyPHP from EasyPHP.org. (Easy, but only features PHP 4 and has some problems with Advanced Programs/scripts.)
Install WAMP (Windows Apache MySQL PHP) or LAMP (Linux Apache MySQL PHP) on your own machine, or better yet, on some OTHER machine on YOUR network. If you are on windows you can visit wampserver.com and download the newest release. (Intermediate)
The way I Recommend: Buy some web space on a server that supports PHP and MySQL. (about $5-10 dollars a month). I highly recommend 1and1.com. They are like the "walmart" of hosting companies. (The largest in the world) they offer hosting for as low as $2.99 a month for 5 Gigabytes of space and 10 MySQL Databases!!! Don't worry they don't skimp on features ether! (Free Domain and ".htaccess" support!)
After all, if you are learning PHP you are going to be using it anyway... so you might as well buy hosting space and a domain now before the name is taken. If you already have a web site your hosting company may already have PHP install on your server. (Call/Email them to be sure.)If you don't want to pay for web space but want to put a site online I recommend that you look into some free hosting options like 100webspace.com or Dot Geek - or just choose the one that fits you from these lists: PHP Free Hosting List and PHP MySQL Free Hosting List.
Anything I should know before I start this course?
Yes - HTML. HTML (Hypertext markup Language) is the simplest formatting language on the web. While PHP, Perl, ASP, and others transfer and process information, HTML makes it look good. For example, think of Microsoft Word. What you type into Word is similar to the function that PHP serves - it supplies the data. But just typing text into MS Word doesn't look very good. That is where the formatting features of Word come in. You can change the size, color, position, and look of the text in your document with the features of MS Word. That is what HTML does.HTML makes the information that you output from PHP look good.So that is why I recommend having a basic knowledge of HTML. If you don't know it already here are some good sites to help you learn this basic language.
Should I learn PHP?
As long as you want to...YES! There is not a person I can think of that would not benefit from the ability to post their own dynamic resume online, or have the capability to list their products or services on the World Wide Web (www). With knowledge of PHP you could do everything from running an Ebay Clone, to managing a Photography site, to building the next Xanga. Don't get me wrong though, you don't have to start the next Hotmail to find a use for PHP! It is just as important for giving small sites the leverage to succeed online.
So what is PHP?
PHP was created in 1995 by an independent software developer named Rasmus Lerdorf. His first PHP script was a Perl/CGI program that kept a log of each visitor that came to his site. The script then displayed how many visits he had received on each page. He soon started receiving emails from other web masters across the Internet asking how he did this (a "Counter" as this is called, were very rare back then.) Because of the interest in his script he started to develop PHP into a new language, by adding more and more features to his script. Eventually, he decided to stop programming PHP in Perl/CGI, and start constructing it with a more powerful language, "C". Thus the interest in PHP keep growing as more features were added and soon other people started writing code for it. It is now one of the most popular languages on the Internet, with contributing programmers across the world.
PHP LESSON Part 1
So you have decided to start learning one of the most powerful Internet programming languages there is - Congratulations! Welcome to Beginning PHP, My name's David and together we will start discovering why over 22 million websites use PHP to generate amazing dynamic pages.
4.Domain İpuçları
,*Buraya yazdığım firmaların hepsi ICANN yazmanı olan firmalar yani bir domain'i kendileri yaratabilir, kendileri silebilir, her türlü işlem yapmaya yetkin firmalardır.
bu resmi, domain alırken firmanın ana sayfasında mutlaka arayın. Bu resmin olmadığı firmalar genelde sadece satış konusunda size yardımcı olabilir satış sonrası hizmetleri pek sağlıklı değildir ve çok fazla sorunla karşılaşabilirsiniz. Benim de sadece ICANN yazman firmaları buraya koymam bu nedenlidir.
*Alan adı Panel şifrenizi kesinlikle kimseyle paylaşmayın size güven veren bir kişiye size yardımcı olması için bir kere dahi olsa şifresinizi verirseniz tüm domain'lerinizin çalınma riskiyle karşı karşıya kalabilirsiniz.
*özellikle yabancı firmalarda kupon sistemi mevcuttur. Domain alırken forumlarda o firmanın o ayki kuponunu aratarak indirimlerden yararlabilirsiniz.
*Kişisel bilgilerinizi doğru yazın herhangi bir nedenle alan adınıza el konabilir. Eğer whois sorgularında kişisel bilgilerinizin görünmesini istemiyorsanız paralı ya da ücretsiz whois privacy (kişisel bilgilerinizin gizliliği) satın alabilirsiniz.Namecheap de ücretsizdir.
*Alan adlarınızı yenilemeyecekseniz kesinlikle otomatik yenileme (auto renew) yapmayın siz farkında olmadan kredi kartınızdan ya da paypal hesabınızdan para çekilip yenileme yapılır. Eğer askere gideceğim ya da unuturum alan adımı da kaybetmek istemiyorum derseniz auto renew (otomatik yenileme) yapabilirsiniz.
3.Nasıl yönetilir?
Domain'i aldıktan sonra panelinize giriş yapıyorsunuz. ilk aklınıza gelmesi gereken DNS dir. Çünkü alan adınızı hosting firmanızın size vermiş olduğu dns adresleriyle kendi hostunuza yönlendiriceksiniz. Bu adresler genellikle;
ns1.bildirgec.orgns2.bildirgec.org şeklinde olur.
dns ayarlarınızı yaptıktan sonra domain'i kilitleyip (lock) oturumunuzu kapatıyorsunuz. Eğer sitenizi başka bir yere taşırsanız (başka bir host firmasına) onların verdiği dns'lerle eski dns'leri değiştiriyorsunuz. Domain'i başka bir domain'e de yönlendirebilirsiniz. yönlendirme işlemini domain redirect'den (alan adı yönlendirme) istediğiniz adresi yazıp direk yapabiliyorsunuz.
ns1.bildirgec.orgns2.bildirgec.org şeklinde olur.
dns ayarlarınızı yaptıktan sonra domain'i kilitleyip (lock) oturumunuzu kapatıyorsunuz. Eğer sitenizi başka bir yere taşırsanız (başka bir host firmasına) onların verdiği dns'lerle eski dns'leri değiştiriyorsunuz. Domain'i başka bir domain'e de yönlendirebilirsiniz. yönlendirme işlemini domain redirect'den (alan adı yönlendirme) istediğiniz adresi yazıp direk yapabiliyorsunuz.
2.Nasıl Domain alacağım ?
Her domain satan firmanın ana sayfasında arama kutusuna benzer bir kutucuk görürsünüz oraya almak istediğiniz adı sonuna da uzantısını yazınız. (.com, net, org, com. tr vs...)
bildirgeç.org'u alacağınızı düşünelim. öncelikle şunu belirteyim; alan adlarında türkçe karakter kullanamazsınız. bildirgeç.org'u alırken "ç" yerine "c" yazmak ya da "ı" yerine "i", "ğ" yerine "g" gibi harf değiştirmeleri kullanarak almalısınız. arama kutusuna bildirgec yazıp sonuna .org uzantısını seçip domain'in önceden alınıp alınmadığını kontrol ediyoruz, eğer available yazarsa (uygun) alınmaya uygun demektir ve ödeme işlemlerine başlayabilirsiniz. "peki ödeme şekli nasıl olacak" sorusuna 2 seçenek önerebilirim.
a.kredi kartıb.internet üzerinden sanal bankalar ( paypal, moneybookers vs.)
ödemenizi yaptıktan sonra domain firmasından size mail gelecek. bu mailde onay ve domain panelinize giriş bilgileriniz yer alıcaktır. Bunları kesinlikle kimseyle paylaşmayın.
bildirgeç.org'u alacağınızı düşünelim. öncelikle şunu belirteyim; alan adlarında türkçe karakter kullanamazsınız. bildirgeç.org'u alırken "ç" yerine "c" yazmak ya da "ı" yerine "i", "ğ" yerine "g" gibi harf değiştirmeleri kullanarak almalısınız. arama kutusuna bildirgec yazıp sonuna .org uzantısını seçip domain'in önceden alınıp alınmadığını kontrol ediyoruz, eğer available yazarsa (uygun) alınmaya uygun demektir ve ödeme işlemlerine başlayabilirsiniz. "peki ödeme şekli nasıl olacak" sorusuna 2 seçenek önerebilirim.
a.kredi kartıb.internet üzerinden sanal bankalar ( paypal, moneybookers vs.)
ödemenizi yaptıktan sonra domain firmasından size mail gelecek. bu mailde onay ve domain panelinize giriş bilgileriniz yer alıcaktır. Bunları kesinlikle kimseyle paylaşmayın.
Alan adı (domain) nasıl alınır, yönetilir ve ipuçları hakkında
İnternet dünyasına başlangıç olarak ilk adımı atmak istiyorsanız en başta yapmanız gereken kendinize ait bir alan adınızın (domain) olması.Bu konuda bir girişimde bulunmak isteyen insanların en fazla merak ettikleri konu alan adını nereden, nasıl, ne şekilde alıcağım ve sağlıklı bir şekilde nasıl alan adını yöneteceğim konusudur.Eğer ben sadece blog yazacağım, websiteme fazla vakit ayırmayacağım diyorsanız ücretsiz blog servislerinin vermiş olduğu alt alan adlarını (subdomain) kullanmanızı tavsiye ederim. Kendinize ait alan adı almak istiyorsanız hadi başlayalım;1.Nereden?Bu konuyu iki sınıfa ayıracağım;A.ingilizce hizmet veren firmalarB.Türk firmalarA. ingilizce bilen kişilerin alternatifleri ve kaliteli hizmet alma şansı daha yüksek. bu sektördeki popüler ve güvenilir firmalara bir bakalım;
Forex Trader Wireless
FOREX.com clients and registered demo user can access the FX market an
d account information from any Internet-enabled mobile device.
*Login to your Live or Demo account
*Place Buy and Sell market orders
*Leave Stop, Limit and One Cancels Other (OCO) orders
*Monitor open positions and pending orders
*Scan up to the minute news headlines
*Read streaming FX market commentary from GAIN's senior traders
d account information from any Internet-enabled mobile device.*Login to your Live or Demo account
*Place Buy and Sell market orders
*Leave Stop, Limit and One Cancels Other (OCO) orders
*Monitor open positions and pending orders
*Scan up to the minute news headlines
*Read streaming FX market commentary from GAIN's senior traders
Set rate alerts
FOREXTrader.wireless is compatible with over 80 Internet-enabled devices, including mobile phones, PDAs, RIM and other wireless handhelds.There are no extra fees to access the site, and no special sign up. All you need is an Internet-enabled wireless device. It's easy!Clients and registered demo users: Use your existing login and password to access FOREXTrader.wireless.
FOREXTrader.wireless is compatible with over 80 Internet-enabled devices, including mobile phones, PDAs, RIM and other wireless handhelds.There are no extra fees to access the site, and no special sign up. All you need is an Internet-enabled wireless device. It's easy!Clients and registered demo users: Use your existing login and password to access FOREXTrader.wireless.
Forex Trader java
For traders looking for robust trading tools and up to the second position and account information, FOREXTrader.java allows you to trade and manage your positions in a real time, web-based environment. This flexible platform is designed to run on both PCs and Mac as well as on various web browsers.
ForexTrader
Designed for active traders looking for an edge, this Windows-based platform offers a rich user interface in a highly customizable trading environment for maximum performance. Enhanced charting functionality and sophisticated order management tools help you to manage your positions quickly and efficiently.
Trading Platforms
Our FOREXTrader platforms combine ease of use, unprecedented flexibility and a full suite of professional charting and order management tools, all on a single screen. Best of all, you can use the same User ID and Password to switch between platforms at will, putting you in total control of your trading experience.
View real-time prices in 37 currency pairs
Execute market orders with just one mouse click
Track P&L and open positions in real time
Perform technical analysis with our advanced charting tool
Choose from 8 available order types
Access a full suite of proprietary daily and weekly research reports
View up to the minute news headlines and market commentary
View real-time prices in 37 currency pairs
Execute market orders with just one mouse click
Track P&L and open positions in real time
Perform technical analysis with our advanced charting tool
Choose from 8 available order types
Access a full suite of proprietary daily and weekly research reports
View up to the minute news headlines and market commentary
FOREX NEDİR?
Forex ( Foreign Exchange ) yabancı dövizler üzerinde doğrudan arbitraj işlemi yapmaya denir ( bir döviz cinsinden diğer döviz cinsine geçmek ). Bu piyasaların günlük ortalama işlem hacmi 2 Trilyon ABD doları olup, dünyanın en likit piyasalarıdır. Geçmişte bu işlemleri sadece büyük bankalar ve kurumsal işlem yapanların elindeydi. Son yıllarda teknoloji ve online bilgisayar sistemlerinin gelişmesi ile birlikte küçük işlemcilerinde Forex'i kullanarak döviz pariteleri üzerine işlem yapma imkanına kavuştular.
Strategies in Forex Trading
Advanced training workshop for FOREX.com clients.
Developed for current FOREX.com clients, Strategies in Forex Trading is a complimentary five hour advanced training workshop designed to teach traders how to best use technical analysis to identify trading opportunities.
Developed for current FOREX.com clients, Strategies in Forex Trading is a complimentary five hour advanced training workshop designed to teach traders how to best use technical analysis to identify trading opportunities.
Taught by our seasoned forex traders, these workshops introduce and expand on the use of charting to help develop sound trading strategies and plans. You'll walk away from these sessions with an understanding of:
1The importance of understanding the major economic reports
2 How to use technical formations to spot market reversals
3 Utilizing advanced charting and technical indicators to identify trading opportunities.
4 Implementing money management techniques
To attend Strategies in Forex Trading free of charge, you must be a FOREX.com client with a minimum balance of $5000.
Learn the same strategies used by professional traders around the world. Reserve your seat today!
Learn the same strategies used by professional traders around the world. Reserve your seat today!
Are we not scheduled to be in your area?
Click here if you would like to be notified of a future workshop in your area
.View available training courses designed for all levels of experience.
Strategies in Forex Trading
Advanced training workshop for FOREX.com clients.
Developed for current FOREX.com clients, Strategies in Forex Trading is a complimentary five hour advanced training workshop designed to teach traders how to best use technical analysis to identify trading opportunities.
Taught by our seasoned forex traders, these workshops introduce and expand on the use of charting to help develop sound trading strategies and plans. You'll walk away from these sessions with an understanding of:
1The importance of understanding the major economic reports
2 How to use technical formations to spot market reversals
3 Utilizing advanced charting and technical indicators to identify trading opportunities.
4 Implementing money management techniques
To attend Strategies in Forex Trading free of charge, you must be a FOREX.com client with a minimum balance of $5000.
Learn the same strategies used by professional traders around the world. Reserve your seat today!
Are we not scheduled to be in your area?
Click here if you would like to be notified of a future workshop in your area
.View available training courses designed for all levels of experience.
Developed for current FOREX.com clients, Strategies in Forex Trading is a complimentary five hour advanced training workshop designed to teach traders how to best use technical analysis to identify trading opportunities.
Taught by our seasoned forex traders, these workshops introduce and expand on the use of charting to help develop sound trading strategies and plans. You'll walk away from these sessions with an understanding of:
1The importance of understanding the major economic reports
2 How to use technical formations to spot market reversals
3 Utilizing advanced charting and technical indicators to identify trading opportunities.
4 Implementing money management techniques
To attend Strategies in Forex Trading free of charge, you must be a FOREX.com client with a minimum balance of $5000.
Learn the same strategies used by professional traders around the world. Reserve your seat today!
Are we not scheduled to be in your area?
Click here if you would like to be notified of a future workshop in your area
.View available training courses designed for all levels of experience.
Upcoming workShop
Led by our seasoned forex traders, these workshops bring you practical insider advice on trading the currency markets. You'll walk away from these sessions with an understanding of:
A primer for getting started in forex trading, a discussion built to introduce the concept of currency trading.
How to use FOREXTrader to test trading strategies through a personalized walkthrough.
Technical tactics to identify trading opportunities using ForexCharts by eSignal, an advanced charting tool.
Reading price charts for key trend formations - and translating them into trading opportunities.
Also, get a preview of Strategies in Forex Trading, FOREX.com's advanced training workshop for current live clients. Drawing on real-world trading experiences, FOREX.com will help you get up to speed quickly and effectively.
Reserve your seat today!
Are we not scheduled to be in your area?
Click here if you would like to be notified of a future seminar in your area.
Learn about our FREE webinar events.
RSS Feed
Our seminar announcements are also available via RSS, and can be subscribed to using one of the following buttons:
A primer for getting started in forex trading, a discussion built to introduce the concept of currency trading.
How to use FOREXTrader to test trading strategies through a personalized walkthrough.
Technical tactics to identify trading opportunities using ForexCharts by eSignal, an advanced charting tool.
Reading price charts for key trend formations - and translating them into trading opportunities.
Also, get a preview of Strategies in Forex Trading, FOREX.com's advanced training workshop for current live clients. Drawing on real-world trading experiences, FOREX.com will help you get up to speed quickly and effectively.
Reserve your seat today!
Are we not scheduled to be in your area?
Click here if you would like to be notified of a future seminar in your area.
Learn about our FREE webinar events.
RSS Feed
Our seminar announcements are also available via RSS, and can be subscribed to using one of the following buttons:
Local Workshops
Live, informative, engaging and practical Join FOREX.com's team of seasoned instructors, as they offer an in-depth look at the world's most traded financial market. Designed for new and active traders alike, live workshops and training provide a hands-on opportunity to learn more about the Forex market.
Getting Started in Forex
Fast-track your forex skills - free of charge.
Before diving into the world's most traded market, FOREX.com invites you to attend a free 90 minute informational seminar, Getting Started in Forex.
Getting Started in Forex
Fast-track your forex skills - free of charge.
Before diving into the world's most traded market, FOREX.com invites you to attend a free 90 minute informational seminar, Getting Started in Forex.
Calculating Profit and Loss
For ease of use, most online trading platforms automatically calculate the P&L of a traders' open positions. However, it is useful to understand how this calculation is formulated:
To illustrate an FX trade, consider the following two examples.
Let's say that the current bid/ask for EUR/USD is 1.46160/190, meaning you can buy 1 euro for 1.46190 or sell 1 euro for 1.46160.
Suppose you decide that the Euro is undervalued against the US dollar. To execute this strategy, you would buy Euros (simultaneously selling dollars), and then wait for the exchange rate to rise.
So you make the trade: to buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.46190). Remember, at 1% margin, your initial margin deposit would be approximately $1,461 for this trade.
As you expected, Euro strengthens to 1.46230/260. Now, to realize your profits, you sell 100,000 Euros at the current rate of 1.46230, and receive $146,230
You bought 100k Euros at 1.46190, paying $146,190. Then you sold 100k Euros at 1.46230, receiving $146,230. That's a difference of 4 pips, or in dollar terms ($146,190 - 146,230 = $40).
Total profit = US $40.
Now in the example, let's say that we once again buy EUR/USD when trading at 1.46160/190. You buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.46190).
However, Euro weakens to 1.46110/140. Now, to minimize your loses to sell 100,000 Euros at 1.46110 and receive $146,110.
You bought 100k Euros at 1.46190, paying $146,190. You sold 100k Euros at 1.46110, receiving $146,110. That's a difference of 8 pips, or in dollar terms ($146,190 - $146,110 = $80).
Total loss = US $80.
To illustrate an FX trade, consider the following two examples.
Let's say that the current bid/ask for EUR/USD is 1.46160/190, meaning you can buy 1 euro for 1.46190 or sell 1 euro for 1.46160.
Suppose you decide that the Euro is undervalued against the US dollar. To execute this strategy, you would buy Euros (simultaneously selling dollars), and then wait for the exchange rate to rise.
So you make the trade: to buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.46190). Remember, at 1% margin, your initial margin deposit would be approximately $1,461 for this trade.
As you expected, Euro strengthens to 1.46230/260. Now, to realize your profits, you sell 100,000 Euros at the current rate of 1.46230, and receive $146,230
You bought 100k Euros at 1.46190, paying $146,190. Then you sold 100k Euros at 1.46230, receiving $146,230. That's a difference of 4 pips, or in dollar terms ($146,190 - 146,230 = $40).
Total profit = US $40.
Now in the example, let's say that we once again buy EUR/USD when trading at 1.46160/190. You buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.46190).
However, Euro weakens to 1.46110/140. Now, to minimize your loses to sell 100,000 Euros at 1.46110 and receive $146,110.
You bought 100k Euros at 1.46190, paying $146,190. You sold 100k Euros at 1.46110, receiving $146,110. That's a difference of 8 pips, or in dollar terms ($146,190 - $146,110 = $80).
Total loss = US $80.
Leverage & Margin
Leverage trading, or trading on margin, means you aren't required to put up the full value of the position. Forex trading offers more leverage than stocks or futures - up to 200 times the value of your account. Of course keep in mind that increased leverage also increases your risk.
Understanding Forex Quotes
Reading a foreign exchange quote is simple if you remember two things:
1.The first currency listed is the base currency
2.The value of the base currency is always 1.
As the centerpiece of the forex market, the US dollar is usually considered the base currency for quotes. When the base currency is USD, think of the quote as telling you what a US dollar is worth in that other currency. When USD is the base currency and the quote goes up, that means USD has strengthened in value and the other currency has weakened. Rising quotes mean a US dollar can now buy more of the other currency than before.
Majors not based on the US dollar
The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). For these pairs, where USD is not the base currency, a rising quote means the US dollar is weakening and buys less of the other currency than before. In other words, if a currency quote goes higher, the base currency is getting stronger. A lower quote means the base currency is weakening.
Cross currencies
Currency pairs that don't involve USD at all are called cross currencies, but the premise is the same. Bids, asks and the spread Just like other markets, forex quotes consist of two sides, the bid and the ask: The BID is the price at which you can SELL base currency.The ASK is the price at which you can BUY base currency. What's a pip? Forex prices are often so liquid, they're quoted in tiny increments called pips, or "percentage in point". A pip refers to the fourth decimal point out, or 1/100th of 1%. For Japanese yen, pips refer to the second decimal point. This is the only exception among the major currencies.
1.The first currency listed is the base currency
2.The value of the base currency is always 1.
As the centerpiece of the forex market, the US dollar is usually considered the base currency for quotes. When the base currency is USD, think of the quote as telling you what a US dollar is worth in that other currency. When USD is the base currency and the quote goes up, that means USD has strengthened in value and the other currency has weakened. Rising quotes mean a US dollar can now buy more of the other currency than before.
Majors not based on the US dollar
The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). For these pairs, where USD is not the base currency, a rising quote means the US dollar is weakening and buys less of the other currency than before. In other words, if a currency quote goes higher, the base currency is getting stronger. A lower quote means the base currency is weakening.
Cross currencies
Currency pairs that don't involve USD at all are called cross currencies, but the premise is the same. Bids, asks and the spread Just like other markets, forex quotes consist of two sides, the bid and the ask: The BID is the price at which you can SELL base currency.The ASK is the price at which you can BUY base currency. What's a pip? Forex prices are often so liquid, they're quoted in tiny increments called pips, or "percentage in point". A pip refers to the fourth decimal point out, or 1/100th of 1%. For Japanese yen, pips refer to the second decimal point. This is the only exception among the major currencies.
What's Forex?
"Forex" stands for foreign exchange; it's also known as FX. In a forex trade, you buy one currency while simultaneously selling another - that is, you're exchanging the sold currency for the one you're buying. The foreign exchange market is an over-the-counter market. Currencies trade in pairs, like the Euro-US Dollar (EUR/USD) or US Dollar / Japanese Yen (USD/JPY). Unlike stocks or futures, there's no centralized exchange for forex. All transactions happen via phone or electronic network. Who trades currencies, and why? Daily turnover in the world's currencies comes from two sources:
Foreign trade (5%). Companies buy and sell products in foreign countries, plus convert profits from foreign sales into domestic currency.
Speculation for profit (95%). Most traders focus on the biggest, most liquid currency pairs. "The Majors" include US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. In fact, more than 85% of daily forex trading happens in the major currency pairs. The world's most traded market, trading 24 hours a day With average daily turnover of US$3.2 trillion, forex is the most traded market in the world. A true 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York. Unlike other financial markets, investors can respond immediately to currency fluctuations, whenever they occur - day or night.
Foreign trade (5%). Companies buy and sell products in foreign countries, plus convert profits from foreign sales into domestic currency.
Speculation for profit (95%). Most traders focus on the biggest, most liquid currency pairs. "The Majors" include US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. In fact, more than 85% of daily forex trading happens in the major currency pairs. The world's most traded market, trading 24 hours a day With average daily turnover of US$3.2 trillion, forex is the most traded market in the world. A true 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York. Unlike other financial markets, investors can respond immediately to currency fluctuations, whenever they occur - day or night.
New to the Forex market?
We've worked hard to distill our collective trading experience into an approach suitable for all skill levels.
Step 1: Understand the FOREX market. Dive into Forex 101 for a compact overview of the basics or sit back and join us at one of our live interactive webinars.
Step 2: Prepare to trade in a live environment. Register for one of our training courses and study at your own pace or join us at a local workshop, where our experienced instructors can teach you in a dynamic classroom setting.
Step 3: Test your skills risk free. Sharpen your technical analysis techniques with a free 30 day practice account.
Step 1: Understand the FOREX market. Dive into Forex 101 for a compact overview of the basics or sit back and join us at one of our live interactive webinars.
Step 2: Prepare to trade in a live environment. Register for one of our training courses and study at your own pace or join us at a local workshop, where our experienced instructors can teach you in a dynamic classroom setting.
Step 3: Test your skills risk free. Sharpen your technical analysis techniques with a free 30 day practice account.
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