MT4 is a platform of Forex trading commonly used in overseas Forex companies with a lot of free EA is also released that can be customized and used. The center of trading is the interbank so transactions have high transparency.
If a Forex company offering MT 4 is used, the usage method will be the same even if the company changes, so it is also possible to efficiently generate profits through Forex trading by making good use of the installed tools.
About yen buying and dollar buying
There are pairs of US dollars and yen among pairs of currencies mostly selected in Forex trading. It is popular as a highly stable currency because of the high number of transactions and so on, and it is also a pair of currencies that beginners can order with confidence because normally there are few cases where intense price movements occur. When traders buy yen and sell dollars, yen becomes high. On the contrary, when yen is sold and dollar is bought, the yen weakens. Together with other things, the more the demand is, the more valuable it will proceed to the appreciation of the yen and the dollar.s
It is important to read how the currency value changes in Forex trading in the future. If you buy too much yen as you watch from the market price, the high yen will stop and the chart will show a reversing movement. The state that value is rising is called rising trend, while the state where the value is decreasing is opposed to the downward trend, traders are the trick to winning in Forex investment by reading trends.
The exchange rate is always consisted of power balance and even if it is seen only by the combination of the US dollar and yen, in fact the value of the currency of other countries is also involved, so relatively judging the value of the currency is difficult. Also, not only the balance between supply and demand of the currency but also the economic situation, natural disasters, bankruptcies of major companies, etc. will also significantly affect the value of the currency, so if unexpected event occurs, it becomes hard to read the price movements even for professional traders.
Can you keep a yen buying and dollar buying position for risk diversification?
When holding a yen buying position, as the number of people selling yen increases, the position you own will turn negative. If it is a gentle movement, you can reduce the damage by settlement while the loss is small, but there is a resistance to loss, a situation that you cannot settle the account and indefinitely holding a negative position is also an assumption.
Under such circumstances, cross trade may be possible by holding the position of yen buying and dollar buying. If you have a yen buying and dollar buying position, you can cover the loss as another currency pair will be positive, contrary to the case where either currency pair was negative. However, because spreads are required to place orders, it will not be a complete set-off and it includes the minus of the spread, so even if you own the positions of both currency, it is normal to become negative.
Even if you build cross trade and make a big profit in one pair of currencies to make a contract, the other currency pair has a big loss. There is also the option to hold positions in cross trade as new, but since the currency pair incurring loss has the risk of loss cut, it will be difficult to make profit efficiently without operating it properly. It may be a method for advanced user rather than for beginners, but depending on the operation it is also possible to gain profit gently while diversifying risk.
By the way, depending on the Forex company there are places where cross trading are prohibited. When considering Forex by cross trade, there is a necessity to open an account and make an investment where there is no restriction. GEMFOREX has no restrictions other than conducting transactions via multiple companies or conducting cross trading in multiple accounts. If you have a single account you can buy yen and buy dollars for trading.
Buy yen and buy dollars alternately using MT 4
There are ways to trade using EA when alternating between yen buying and buying dollars using MT 4. If you are in a market where the appreciation of the yen is likely to go, set up to buy yen, if the market where yen appreciates and settle if it is likely to turn into a weak yen. It is possible to generate profits efficiently by holding the position of buying dollars.
If you can read the movements of the market firmly and repeat alternating yen buying and dollar buying, you can build enough profit by just investing in yen and dollar currency pairs. However, if you have a loss in a state holding a yen buying position, the Forex companies that cannot do cross trade will not be able to keep the dollar buying position, so be careful.
In order to go back and forth between buying yen and buying dollars, it is also necessary to consider loss premises and it cannot win even if it continuous to hold a position without being able to cut losses. When trading with MT 4, do a back test and check past results.
As it is said to buy yen in case of emergency, yen has a strong characteristic compared with other currencies even when the world situation becomes unstable. It is also important to know the value of relative currency, utilization of EA in which movements of past rates are programmed is effective for Forex trading. If you use EA to alternate between yen buying and buying dollars, it is also important to have an environment where a rich number of EA can be used. GEMFOREX is capable of using a large number of EAs, the Mirror trade that can copy the trading methods of professional traders are also available, it is also fully possible to leave results from yen buying and dollar buying.