For the reader refers to as the Forex (Foreign Exchange Market), an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in 1970, when free exchange rates and floating currencies are been introduced. In such an environment only participants in the market determine the price of one currency against another, depending on supply and demand for money.
FOREX is a a little 'single market for a number of reasons. First, it is one of the few markets in which we can say with a few qualifications that is free of external controls and that can not be manipulated. It 'also the largest liquid financial markets to accomplish with the trade between 1 and 1.5 billion dollars a day. With so much money moving this fast, it is clear why an individual investor, it would be almost impossible to find, much to the price of a largeCurrency>. In addition, the liquidity of the market means that unlike some rarely in stock exchange, traders can open and close positions in a few seconds, there are always buyers and sellers.
Currency Trading
A rather unique feature of the FOREX money market is the variance of the participants. Investors find a number of reasons for entering the market, some investors to long-term coverage, while others use credit lines to seek large mass in the short termProfits. Interestingly, unlike blue-chip stocks that provide generally attractive only to long-term investor, the combination of relatively constant daily fluctuations, but small currency prices, create an environment that investors attracted a wide range of strategies.
How does FOREX
Transactions in foreign currencies are not centralized on an exchange, as opposed to saying that the NYSE and then conquer the world through telecommunications. 'S Commerceopen 24 hours a day from Sunday afternoon to Friday afternoon (00:00 GMT Monday to 22.00 hours GMT on Friday). In almost all time zones around the world there are dealers who quote all major currencies. After deciding what currency the investor wants to buy, he or she so one of these dealers (some of which can be found online). And 'quite common for investors to currency prices speculating a line of credit (theavailable, with a capital of only $ 500) increase, and their considerable potential gains and losses. This is called marginal trading.
Marginal Trading
Marginal trading is simply the term used for trading with borrowed capital. It 'due to the fact that in the FOREX investments can be made without a real offer of money attractive. This allows investors to invest much more money with fewer money transfer costs, and openmultiple locations with a much smaller amount of capital itself. So you can make relatively large transactions, very quickly and inexpensively, with a small amount of initial capital. Commerce marginal in an exchange market is quantified in many. The term "lot" refers to approximately $ 100,000, an amount that can be achieved through the establishment of just 0.5% or $ 500.
Example: You believe that signals the market has shown that the pound will strengthen against the U.S.Dollars. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait to get on the exchange rate. In the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $ 405. So, on an initial investment of $ 1,000, have reached over 40% of the profits. (Just as an example of how exchange rates change over the course of a day, a daily average exchange rate of euro (in dollars), about 70 to100 pips).
If you decide to close a position, the deposit amount that was originally done to you and a calculation of your profits or losses. The gain or loss is then credited to your account.
Investment Strategies: Technical Analysis and Fundamental Analysis
The two basic strategies for investing in FOREX are Technical Analysis or Fundamental Analysis. Most investors in small and medium-sized enterprises in the financial markets using technical analysis. ThisTechnique stems from the assumption that all information found on the market and future fluctuations of a particular coin in the price chain. This means that all the factors that have an impact on the price already takes into account the market and are therefore reflected in the price. In essence then, what does this type of investors, is the starting point of his / her investments on three key assumptions. These are all factors that keeps the movement of the market that theVariations in prices is purposeful and directly tied to these events and that history repeats itself. Someone who uses technical analysis looks at the maximum and minimum prices of a currency, the prices for opening and closing, and the volume of transactions. The investor does not try to outsmart the market, or even predict major long term trends, but just look what happened to that money in the recent past, and expects that small fluctuations in generalcontinue as they have previously.
Fundamental analysis is that the current situation in the country of the currency, including such things as its economy, its political situation, analysis and other related items. The numbers, the economy of a country depends on a series of quantifiable measures such as interest rate the central bank, the national unemployment, fiscal policy and rate of inflation. An investor can also expect less quantifiable Events such as political unrest or transition will also have an impact on the market. Against all predictions on the factors alone, but it is important to remember that investors must also keep the expectations and the expectations of market participants. In fact, as in every exchange, the value of a currency is to a large extent on the perception and expectations about the money, not only on its reality.
Make money> Forex Trading Forex
FOREX investing is one of the most potentially rewarding types of investments. While certainly the risk is high, it means the ability to conduct marginal trading FOREX, the potential profits are enormous compared to the initial investment. Another benefit of FOREX is its size, almost all attempts by others to influence the market to their advantage prevented. So, who sells foreign currency to invest in afeels confident enough that the investment he or she has the same chance to profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of care, can investors who feel that they use a technical analysis are relatively confident that their ability to read the daily fluctuations in the foreign market in an appropriate way to give them the skills necessary for investment Information is active.
FOREX 101: Make Money with Currency Trading
No comments:
Post a Comment