Trading foreign exchange with Templer Holdings offers the retail
foreign exchange trader the best way to achieve their goals. Templer
Holdings understands the needs of retail traders. We provide you
with the best trading package, which includes a "state-of-the-art"
trading platform, rapid order execution, the narrowest price spreads,
live access to vital market information, and superior customer support.
24 Hour Customer Support
Templer Holdings also provides a Free Demo Account. The trial
account simulates live currency trading and enables traders
to become familiar with Templer Holdings dealing platform, view
our dealing rates, charts, news and to test your trading strategies.
Currency Pairs
In the Forex market, trading is always in currency pairs, such
as EUR/USD or USD/JPY.
| Forex
Symbol |
Currency
Pairs
|
Trading
Terminologies |
| EUR/USD |
Euro / U.S. Dollar |
Euro |
| GBP/USD |
British Pound /
U.S. Dollar
|
Cable or Sterling |
| USD/JPY |
U.S. Dollar / Japanese
Yen |
Dollar Yen |
| USD/CHF |
U.S. Dollar / Swiss
Franc |
Dollar Swiss |
| USD/CAD |
U.S. Dollar / Canadian
Dollar |
Dollar Canada |
| AUD/USD |
Australian Dollar
/ U.S. Dollar |
Aussie Dollar or
Aussie |
| EUR/GBP |
Euro
/ British Pound |
Euro
Sterling |
| EUR/JPY |
Euro / Japanese
Yen |
Euro Yen |
| EUR/CHF |
Euro / Swiss Franc |
Euro Swiss |
| GBP/JPY |
British Pound /
Japanese Yen |
Sterling Yen |
The base currency-the first currency listed in the currency
pair-is the basis for the buy or the sell. As an example, the
US Dollar is the base currency for USD/JPY (US Dollar/Japanese
Yen). The current bid/ask price for USD/JPY could be 107.20/107.23,
which means you could buy $1 US for 107.23 Japanese Yen, or
sell $1 US for 107.20 Japanese Yen.
Foreign Exchange Trades
If the Euro/USD is trading at 1.2400/03 and you buy Euro at
1.2403, you are “long” Euro and “short” the US Dollar. In another
trade, you decide to sell Japanese Yen, if the USD/JPY is trading
at 107.20/23 and you buy at 107.23 you would be long the US
Dollar and short Japanese Yen. Let’s assume that the Euro goes
higher to 1.2537 but the US Dollar falls to 106.76. How did
you do on these two trades?
Your profit and loss for the two transactions would be as follows:
On the Euro trade you bought Euro 100,000 at 1.2403 and sold
Euro at 1.2537 your profit is .0134 or $1,340 (.0134 x Euro100,000
= $1,340). On the USD/JPY trade you bought $100,000 at 107.23
and sold it at 106.76 your loss on this trade is .47 or $440.24
($100,000 x 0.47 = JPY47,000 / 106.76 = $440.24). Your net gains
on the two transactions is a profit of $899.76 ($1340 - $440.24
= $899.76).
Risk Management
Trading foreign currencies is a challenging and potentially
profitable opportunity for educated and experienced investors.
However, before deciding to participate in the Forex market,
you should carefully consider your investment objectives, level
of experience and risk appetite. Most importantly, do not invest
money you cannot afford to lose.
