Making a Trade - Cashout's Trading Interface
This is the main trading interface on Cashout. From here you have all the basic information and functionalities required to make a trade.
Let's take a look at the key features 1 by 1.
These symbols at the top of the screen represent currency pairs. Currency pairs are what you are trading on Cashout. Basically, all trades always involve two currencies.
Let’s take the example. When you make an Australian Dollar (AUD) to United States Dollar (USD) trade, you are basically selling your USD and using it to buy AUD. Once purchased, you wait for the exchange rate to change and then sell your AUD and buy USD at a profit. Confused? No worries, you can learn everything you need to know in this article, dedicated to currency pairs.
You can change the currency pairs you want to trade by clicking on the flags. This takes you to the Markets Window.
This is the Markets Window. From here you can select from among all of the currency pairs available to trade on Cashout.
The bar next to each currency pair represents the pairs volatility, or the current fluctuation in the exchange rate. Basically, the higher the volatility the more traders are trading that particular pair, and the more the action. Cashout automatically ranks tradable currencies by their current volatility.
This is the amount of money you have to make trades. You can trade either a portion of the balance or all of it. In case you run out of money, Cashout offers many ways to get additional currency.
You might notice that your balance has a $ symbol in front of it. These are not real United States Dollars (USD), but simulated $. Because the USD represents 80% of currency trades world wide, it makes sense that Cashout uses the USD as its base currency.
This bubble represents the exchange rate. It is the cost of buying or selling the currency pair you want to exchange. The exchange rate is in constant fluctuation, meaning that your goal is to predict the direction that the exchange rate will go (up or down).
The exchange rate can be broken down into three parts. The first part (before the decimal) is the Dollar amount. The two decimal places to the right of the decimal represent the cents. So in the above example we see that buying 1 euro would cost 1 US dollar and 6 cents.
So what is with those other 3 numbers? They seem a bit odd…
The last three numbers are fractions of a cent. Unlike in your local supermarket, currency rates are not quoted in cents. The third decimal place is 1/100th of a cent, the fourth decimal place is 1/1000th of a cent (also known as a “pip”), and the fifth decimal place represents 1/10,000th of a cent (also known as a “pipette”).
Pips and pipetstes may seem at first as something totally crazy… I mean 1 cent is 1 cent, it is hardly worth anything at all. Well, that is not totally true! Let’s say you are trading 100,000 USD. In this case, every single movement of a pip is worth $10 (.0001 x 100,000 = $10). This means that these little tiny number can actually have a huge impact on how you make money with ForEx. You can learn more about how this works in this dedicated lesson.
The chart is the main tool you use to make a decision on a trade. The chart displays the fluctuations of the currency rate in the recent past. Your job is to read the chart and attempt to decide in which direction the exchange rate is currently moving.
Cashout uses real-time exchange rates from real ForEx markets. The data displayed in our chart is therefore accurate and live!
This is the amount of your total balance that you invest in a trade. The Trade Amount is important for two reasons: (1) It is not only the amount of your balance you want to invest in the trade, it is also (2) the maximum amount you can lose during a single trade. In other words, the Trade Amount is also the maximum risk you take.
For example, if you trade $1000, and your trade goes bad, the maximum amount of your balance that you can lose is $1000.
Use the trade amount carefully so that you always have enough balance to keep trading in case things go poorly with one trade.
The booster, also known as a Leverage Multiplier, is how you can make serious money currency trading.
Let’s say you want to make a trade of $1000. However, by trading only $1000, it is unlikely that you will make very much money. In order to make better profits, a broker will lend you additional money to make your trade. This is the booster.
Let’s say you use a booster (leverage multiplier) of x 100 to make your trade. Continuing with our example, the amount of money you actually use in the trade is $100,000, or your $1000 trade amount multiplied by 100. In this case, you put in $1000, and Cashout put in $99,000. If you make a profit, you get to keep it. If you make a loss, it is subtracted from your $1000 trade amount. Your trade will end if your loss exceeds $1000.
In other words, boosters are they key to making money with currency trading. For a small investment on your end, you can reap huge rewards. However, keep in mind that the higher the booster the greater the risk. So adjust your booster at your discretion.
The timer sets the maximum amount of time you have to complete a trade. The Timer is a feature unique to Cashout. Most currency brokers do not use a timer. Cashout uses a timer as to make the application more interesting, by encouraging quick decision making.
Rise or Fall
Your job as a currency trader is to determine if the exchange rate will rise or fall. If you think that the rate will go up, then you select "RISE". If you think that the exchange rate will fall, then you select "FALL".
If you choose "RISE" and the exchange rate moves up, then you will turn a profit. However, if the exchange rate falls, you will lose money. The decision is up to you!
Next up, what is going on when your trade is active.