1) What is Forex?
Forex = Foreign Exchange: Foreign Currency Exchange / Foreign Exchange, often referred to as FOREX or FX or Spot FX, and this is the largest financial market in the world, with the number of daily cash transactions reached 1.95 trillion USD (2006). If you compare with the New York Stock Exchange 25 billion transactions each day, you can imagine this huge market how.
Foreign currency exchange market (Forex) is the currency market between banks was established in 1971 when floating exchange rates are concretized. The market is a range of activities in which each country's currency is exchanged with each other and a place to conduct international business.
Forex is an organized group of approximately 4500 currency transactions, international banks, central banks and government commercial companies. The payment for export as well as the sale of assets must be conducted through foreign currency exchange market. This is called the foreign exchange market "consumption." There are also some speculation in the Forex company that is financially exposed to large economies abroad to participate in FOREX to offset the risks of international investment.
So "goods" What is the FOREX market? The answer is CASH. Foreign exchange trading is the trading activities of buying some of this money and sold a number of other currencies held at the same time. Money is traded through brokers or directly by pairs, for example EUR / USD or GBP / JPY.
FOREX trading activity can be complicated for many people because they can not purchase anything hand in the market. Simple you think buying a certain currency as buying a stake in the country. When you buy the Japanese Yen, you are affecting Japan's foreign exchange rates and indirectly to the Japanese economy, the value of the currency is reflecting the market's assessment of "health" in the present and future of a nation.
Overview, exchange rate of one currency against other currencies is a reflection of the elements of an economy when compared with other economies.
Unlike other financial market, FOREX is not a financial center or any transaction. The foreign exchange market is the market "Interbank", and based on electronic transactions between systems connected the bank together, and work 24 hours a day,
Commercial banks have two roles in the Forex market:
1. Make transactions between two parties are easy, such as the company wants to exchange currencies (consumers).
2. Speculation by buying and selling currencies. Banks play a role in the specific currency because it is believed that in the future we will have a higher price (if purchased in store) and lower (if sold soon). One statistic that 70% of the annual profit international bank was born from the currency speculation. The other speculative traders, including the world's most successful example of George Soros.
Type 3 of Forex include central banks of other countries like the Federal Reserve Bank America. They participate in Forex to ensure financial benefits of their country. When central banks buy and sell foreign currency or currencies, the aim is to maintain the currency value of their country
Forex is very broad and there are many people involved, not one person, only the central bank's new government can control the market. Compared with the average daily trading 300 billion of government bonds market and about 100 billion dollars traded on the U.S. stock market is because of the large Forex, exceeded 1.9 trillion per day ( 2006).
Everything you need when trading is a computer, Internet connection, and the information market.
2) Compare Forex and stock
Forex market is almost 24/24 activities. Most exchanges are open on Sunday 5:15 pm EST and ends on the 6th, 4 pm, and customer service 24 / 7. Forex trading and is done all over the world, across all time zones. This will help you set yourself a timetable that best suits you.
Trading 24/24
Forex market is almost 24/24 activities. Most exchanges are open on Sunday 5:15 pm EST and ends on the 6th, 4 pm, and customer service 24 / 7. Forex trading and is done all over the world, across all time zones. This will help you set yourself a timetable that best suits you.
Free Services
Often in Forex brokers do not charge service fees or additional orders for each order. Trading floor will split a commission back on point difference between the sale price and the purchase price in order to break them. So in Forex transaction costs low compared to other markets.
Place orders immediately
Your orders will be done right away in most transactions. And you can also continuously updated information on rates and on your account. What you click is what you will achieve. And there will be no difference between exchange rates and exchange rates that you update your transactions in securities as
First sale after purchase
Unlike the property market is limited and can not be sold blank (after the sale before buying), in the Forex market you can trade at the market both up and down at the market. Trading opportunities always appear at any time and simply identify market trends. So you can always decide and draw investment at any time at all stages of the market.
Besides the following reasons:
No middlemen
The direct transactions in the financial center and brokerage bring many benefits to offer, but it has a drawback is through intermediaries. The more objects participating in the transaction, the cost will be higher, the time of trading orders as long and increasingly complex procedures. Cost is not only money but also time spent. In the currency markets have eliminated the intermediate factor, to help customers deal directly on the floor dealing with software and place orders immediately with the changes from the market. Forex trading makes transactions quickly and cost savings compared to intermediate and securities of other businesses.
The purchase / sale does not affect market
The brokerage analysts and investors have little affect market
Types of securities 8.000> <4 major currency pairs
There are approximately 4.500 types of securities listed on New York. And more than 3,500 different types of rays NASDAQ. How do you choose? Devoted an analysis of each company? In the forex market, you have 4 major currency pairs trading 24h/ngay and 5.5 days per week. You can completely focus on one pair of money for research and trading
3) Trading in the Forex market:
In the forex market, your job is foreign currency trading. The work done is simple and convenient than trading securities, and if you have experience in the securities easier the more you learn in this market.
The goal of Forex Trading is to exchange one currency for another currency with a desired exchange rate between the currency pairs will change and value for money you would have sold at purchase price than on.
A specific example: You buy EUR and profit expectations Rate of exchange rates between one currency compared to another currency. One example, exchange rate USD / CHF shows how many new dollars to buy a Swiss francs, or vice versa.
In Forex, currency has always stood as a pair. The reason is that each transaction in a currency you must sell and buy a currency other immediately. This is an example of the Pound Sterling and U.S. dollars:
GBP / USD = 1.7500
With the above rate, you pay 1.75 USD to buy a pound.
Long / Short
First you must determine you want to buy or sell.
If you want to buy a currency (usually the purchase and sale of a currency with a coin), you will want value for their money will buy you up and then sell for about difference. Or in terms of transactions will be "buying positions" or "long position." In terms of Forex "long = buy"
If you want to sell (ie you sell the coin and buy with money), you expect the currency will lose value and you sell then you buy it to eat the same difference. It also called position to sell or "short position". In terms of Forex "= sell short"
Bid / Ask
All currency pairs are two-way exchange rates, price = bid price and ask price = purchase price. Price bid is always lower than the Ask price. Bid price is the market exchange rates to buy currencies in pairs. This is the rate that you want to sell to the market.
Ask price is the price that the market wants to sell the currency in the currency pair. This is the rate that you buy from the market.
The difference between bid price and ask price is called the spread
I can not afford to buy $ 10,000 euros. I can trade it?
You can instead! Signed with the amount you can fund the initial transaction due to the bank loan. So you can open an account $ 10,000 or $ 100,000 with only $ 100 or sign fund $ 1,000.
Amount of funds will sign corresponding lot number can be traded. Now, you just focus on the term "lot" is the minimum amount that you can buy. When the supermarket to buy eggs you can not buy a fruit that must buy a dozen eggs 12, also known as a "lot" eggs. In Forex, it is not ideal when buying and selling currency with only 1 or 2 USD, you are trading with a lot usually about $ 10,000 to $ 100,000 depending on the type of account you choose.
For example:
You tn signs that GBP increases against the dollar on the market. You place orders to buy a lot ($ 100,000) with 1% funds are deposited $ 1,000 and waited rate hikes. This means you can control an amount of currency worth $ 100,000 or £ equivalent fund with only $ 1,000 signing. Predicting the precise you and you decide the price line at 1.05050. You earn 50 pips profit, equivalent to $ 500 (a pip is the smallest point of a currency). And with the investment of $ 1,000, you have made 50% profit rate. Your profit is $ 500 on $ 1,000 capital investment, is not it remarkable?
When you decide to close the order, signed fund accounts you have set will be returned to your account and get together with profits or minus losses you take. Profit or loss will be charged to your account.
Interest rates
Interest in the Forex is not like in other markets. Trader would pay or receive interest every day if transaction through 5pm EST time. If you do not want to be / lost interest on transaction fees, you just close the transaction order before 5pm EST, this is the end of the day.
Every currency trading, you will borrow money to buy a currency other one, so the interest rate is required. The interest rate you will pay for the transaction to borrow money, and you will also earn an interest rate from the currency you buy. If a currency is bought in the transaction have a higher interest rate currency you borrow, you will gain a profit - and the transaction will be beneficial to you if you passed on. This is a significant factor.
Transaction account "Fantasy"
You can open a free demo account. This account is a function no different from real accounts with full graphs, and analysis tools with real data, real interoperability. However this is not account for business purposes because it helps you learn and experience from the floor so you really have enough confidence into the real floor. This account will test levels and reduce risks for you as a real floor.
Forex = Foreign Exchange: Foreign Currency Exchange / Foreign Exchange, often referred to as FOREX or FX or Spot FX, and this is the largest financial market in the world, with the number of daily cash transactions reached 1.95 trillion USD (2006). If you compare with the New York Stock Exchange 25 billion transactions each day, you can imagine this huge market how.
Foreign currency exchange market (Forex) is the currency market between banks was established in 1971 when floating exchange rates are concretized. The market is a range of activities in which each country's currency is exchanged with each other and a place to conduct international business.
Forex is an organized group of approximately 4500 currency transactions, international banks, central banks and government commercial companies. The payment for export as well as the sale of assets must be conducted through foreign currency exchange market. This is called the foreign exchange market "consumption." There are also some speculation in the Forex company that is financially exposed to large economies abroad to participate in FOREX to offset the risks of international investment.
So "goods" What is the FOREX market? The answer is CASH. Foreign exchange trading is the trading activities of buying some of this money and sold a number of other currencies held at the same time. Money is traded through brokers or directly by pairs, for example EUR / USD or GBP / JPY.
FOREX trading activity can be complicated for many people because they can not purchase anything hand in the market. Simple you think buying a certain currency as buying a stake in the country. When you buy the Japanese Yen, you are affecting Japan's foreign exchange rates and indirectly to the Japanese economy, the value of the currency is reflecting the market's assessment of "health" in the present and future of a nation.
Overview, exchange rate of one currency against other currencies is a reflection of the elements of an economy when compared with other economies.
Unlike other financial market, FOREX is not a financial center or any transaction. The foreign exchange market is the market "Interbank", and based on electronic transactions between systems connected the bank together, and work 24 hours a day,
Commercial banks have two roles in the Forex market:
1. Make transactions between two parties are easy, such as the company wants to exchange currencies (consumers).
2. Speculation by buying and selling currencies. Banks play a role in the specific currency because it is believed that in the future we will have a higher price (if purchased in store) and lower (if sold soon). One statistic that 70% of the annual profit international bank was born from the currency speculation. The other speculative traders, including the world's most successful example of George Soros.
Type 3 of Forex include central banks of other countries like the Federal Reserve Bank America. They participate in Forex to ensure financial benefits of their country. When central banks buy and sell foreign currency or currencies, the aim is to maintain the currency value of their country
Forex is very broad and there are many people involved, not one person, only the central bank's new government can control the market. Compared with the average daily trading 300 billion of government bonds market and about 100 billion dollars traded on the U.S. stock market is because of the large Forex, exceeded 1.9 trillion per day ( 2006).
Everything you need when trading is a computer, Internet connection, and the information market.
2) Compare Forex and stock
Forex market is almost 24/24 activities. Most exchanges are open on Sunday 5:15 pm EST and ends on the 6th, 4 pm, and customer service 24 / 7. Forex trading and is done all over the world, across all time zones. This will help you set yourself a timetable that best suits you.
Trading 24/24
Forex market is almost 24/24 activities. Most exchanges are open on Sunday 5:15 pm EST and ends on the 6th, 4 pm, and customer service 24 / 7. Forex trading and is done all over the world, across all time zones. This will help you set yourself a timetable that best suits you.
Free Services
Often in Forex brokers do not charge service fees or additional orders for each order. Trading floor will split a commission back on point difference between the sale price and the purchase price in order to break them. So in Forex transaction costs low compared to other markets.
Place orders immediately
Your orders will be done right away in most transactions. And you can also continuously updated information on rates and on your account. What you click is what you will achieve. And there will be no difference between exchange rates and exchange rates that you update your transactions in securities as
First sale after purchase
Unlike the property market is limited and can not be sold blank (after the sale before buying), in the Forex market you can trade at the market both up and down at the market. Trading opportunities always appear at any time and simply identify market trends. So you can always decide and draw investment at any time at all stages of the market.
Besides the following reasons:
No middlemen
The direct transactions in the financial center and brokerage bring many benefits to offer, but it has a drawback is through intermediaries. The more objects participating in the transaction, the cost will be higher, the time of trading orders as long and increasingly complex procedures. Cost is not only money but also time spent. In the currency markets have eliminated the intermediate factor, to help customers deal directly on the floor dealing with software and place orders immediately with the changes from the market. Forex trading makes transactions quickly and cost savings compared to intermediate and securities of other businesses.
The purchase / sale does not affect market
The brokerage analysts and investors have little affect market
Types of securities 8.000> <4 major currency pairs
There are approximately 4.500 types of securities listed on New York. And more than 3,500 different types of rays NASDAQ. How do you choose? Devoted an analysis of each company? In the forex market, you have 4 major currency pairs trading 24h/ngay and 5.5 days per week. You can completely focus on one pair of money for research and trading
3) Trading in the Forex market:
In the forex market, your job is foreign currency trading. The work done is simple and convenient than trading securities, and if you have experience in the securities easier the more you learn in this market.
The goal of Forex Trading is to exchange one currency for another currency with a desired exchange rate between the currency pairs will change and value for money you would have sold at purchase price than on.
A specific example: You buy EUR and profit expectations Rate of exchange rates between one currency compared to another currency. One example, exchange rate USD / CHF shows how many new dollars to buy a Swiss francs, or vice versa.
In Forex, currency has always stood as a pair. The reason is that each transaction in a currency you must sell and buy a currency other immediately. This is an example of the Pound Sterling and U.S. dollars:
GBP / USD = 1.7500
With the above rate, you pay 1.75 USD to buy a pound.
Long / Short
First you must determine you want to buy or sell.
If you want to buy a currency (usually the purchase and sale of a currency with a coin), you will want value for their money will buy you up and then sell for about difference. Or in terms of transactions will be "buying positions" or "long position." In terms of Forex "long = buy"
If you want to sell (ie you sell the coin and buy with money), you expect the currency will lose value and you sell then you buy it to eat the same difference. It also called position to sell or "short position". In terms of Forex "= sell short"
Bid / Ask
All currency pairs are two-way exchange rates, price = bid price and ask price = purchase price. Price bid is always lower than the Ask price. Bid price is the market exchange rates to buy currencies in pairs. This is the rate that you want to sell to the market.
Ask price is the price that the market wants to sell the currency in the currency pair. This is the rate that you buy from the market.
The difference between bid price and ask price is called the spread
I can not afford to buy $ 10,000 euros. I can trade it?
You can instead! Signed with the amount you can fund the initial transaction due to the bank loan. So you can open an account $ 10,000 or $ 100,000 with only $ 100 or sign fund $ 1,000.
Amount of funds will sign corresponding lot number can be traded. Now, you just focus on the term "lot" is the minimum amount that you can buy. When the supermarket to buy eggs you can not buy a fruit that must buy a dozen eggs 12, also known as a "lot" eggs. In Forex, it is not ideal when buying and selling currency with only 1 or 2 USD, you are trading with a lot usually about $ 10,000 to $ 100,000 depending on the type of account you choose.
For example:
You tn signs that GBP increases against the dollar on the market. You place orders to buy a lot ($ 100,000) with 1% funds are deposited $ 1,000 and waited rate hikes. This means you can control an amount of currency worth $ 100,000 or £ equivalent fund with only $ 1,000 signing. Predicting the precise you and you decide the price line at 1.05050. You earn 50 pips profit, equivalent to $ 500 (a pip is the smallest point of a currency). And with the investment of $ 1,000, you have made 50% profit rate. Your profit is $ 500 on $ 1,000 capital investment, is not it remarkable?
When you decide to close the order, signed fund accounts you have set will be returned to your account and get together with profits or minus losses you take. Profit or loss will be charged to your account.
Interest rates
Interest in the Forex is not like in other markets. Trader would pay or receive interest every day if transaction through 5pm EST time. If you do not want to be / lost interest on transaction fees, you just close the transaction order before 5pm EST, this is the end of the day.
Every currency trading, you will borrow money to buy a currency other one, so the interest rate is required. The interest rate you will pay for the transaction to borrow money, and you will also earn an interest rate from the currency you buy. If a currency is bought in the transaction have a higher interest rate currency you borrow, you will gain a profit - and the transaction will be beneficial to you if you passed on. This is a significant factor.
Transaction account "Fantasy"
You can open a free demo account. This account is a function no different from real accounts with full graphs, and analysis tools with real data, real interoperability. However this is not account for business purposes because it helps you learn and experience from the floor so you really have enough confidence into the real floor. This account will test levels and reduce risks for you as a real floor.
Get Bonus No Deposite in your Trading Account now and add this currency pair to your forex portfolio, enjoy your trading with us!
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