What is Forex?
The word "forex" means short, the foreign exchange market or the stock market
World of foreign money which would fit the word "FOReign EXchange
market "in the English language. is speculative and by buying and
Sale of the major currencies which have the core share of operations in
Forex market is the U.S. dollar (USD) (base currency)
And the euro (EUR) and pound sterling (GBP) and Swiss franc (CHF)
And the Japanese Yen (JPY).
And are buying and selling those currencies or currency in U.S. dollars
Among other so-called currency pairs, and in return
The U.S. dollar or any currency against another currency value. And
Considered speculative currency profitable trade in stock exchanges, and the most risky
Also, because of the high volatility of the currency of the trend
Upward to the downward trend or vice versa. In addition to the currency market
There are other types of stock exchanges are: gold, silver,
Petroleum Exchange, shares and bonds, agricultural crops and energy.
The stock exchange and characterized by various indicators technical analysis
News analysis and rapid access to profits.
The daily volume of currency trading in the forex market up to 3
Trillion dollars. And for the sake of comparison, the volume of activities of the New York Stock Exchange
Of the shares does not exceed 300 billion dollars per day, it was necessary to half a year
New York Stock Exchange to reach the size of the currency market.
And I have a bond market and selling the future (Future - FUTURE)
A fundamental difference, and failure compared to the forex market: it depends on
Work at the end of the day and resume work with the following morning. And
It is natural that if you are trading in the markets of Germany, for example, and there in the
America events with significant impact on the market, you might find the market
At the beginning of its work is significantly different than expected.
The forex market is not a market in the literal sense of the word, since it is not
Has no center and has no place to exercise a certain trade. The
Trading practices by calling teleconference and the Internet, computer-
One time between hundreds of banks around the world. Hundreds of Alumblyonat
Dollars are sold and purchased every few seconds, and this is what is called
Trading currencies.
Forex Market combines four regional markets: Australian and Asian and
European and American. And continue trading operations in which all the days of
Work, and the market operates around the clock, or 24 hours a day. And
Notes the relative calm from 20:00 until 01:00 GMT,
And is attributed to the closure of the New York Stock Exchange eighth in the evening and start exchange
Tokyo work at one o'clock in the morning.
The currency market is not about working hours because the stock is traded
Between banks that are located around the world. And the prices
Multi-currency has undergone significant changes which will help to do some of the
Business operations during a single day. It is well known that the declines
Significant impact on the financial markets, which could lead to the collapse of the stock or
Bonds. The forex market decline in the dollar (for
Example) means the price rise of other currency and there is no collapse of downturn
Stocks or bonds.
Established Forex market (FOREX) for the financial transactions between banks in 1971
When turned transactions in world trade to use the fixed values
Currency values of the floatation. This would be the result of the financial package deals
Agents and financial markets to convert a certain amount of money in the currency
One country to another country's currency value of a pre-agreed to the date
Given. And determines the currency exchange rate designated for other currency
Simply: supply and demand for conversion may be approved by both parties.
Volume of transactions in the capital market in the world a steady growth. This is linked
The great development of world trade and lift the ban on currency
Many countries. That 80% of all transactions is a speculative
In the currency market aimed at securing profits from price differences
Currencies. And attract these speculations by many participants, both
Financial organizations or individual investors.
As a result of the evolution of massive communications technology in the last two decades
This changed the market itself to a large degree. That the profession currency trader
Which was surrounded by an aura of secrecy has become almost unanimous. The trade
Currency, which until recently was limited to banks Monopoly
Major is accessible to all as a result of electronic commerce. And even
The largest banks in favor of electronic trading as well as on personal transactions
Between two parties.
The aim of the Forex market as an area to use the possibilities of a person's financial
And mental and psychological is not good luck. Some may succeed in that
But not for long. The key advantage of the currency market is that it
Place for the success of using the intellectual potential.
A significant feature of the currency market is the property of the balance in spite of
This seems strange. Everyone knows that the fundamental characteristic of the market
Finance is the sudden decline. However, the Forex market is different from the stock market
In that it does not fall. When you lose stock value of this collapse.
But if the dollar falls, for example, that just means that other currency has become
Stronger - an example of the Japanese yen, which is now in a few months of the year
1998 the strongest quarter for almost the dollar. This fall has arrived
The dollar for some days in that period of tens of per cent. Despite
This did not happen the collapse of the market and the transaction continues as usual. In this
Confined to the stability of the currency market and the associated work. Currency is
Full liquidity goods can be purchased or sold at all times.
Currency market works every time non-stop is not linked to hours of work
Assigned to the Stock Exchange, the transactions between banks are located in different parts of
Of the globe. That changes in currency rates are significantly
And several times be sufficient to carry out several operations in each day. If
You have a proven trading technology and secure you can make the area
Work does not compare the effectiveness of its effectiveness any other area. Therefore, we find banks
Greater acquire the most expensive equipment and used dozens of specialist trading in
Various sections of the currency market.
That Mouncerfat to engage in this work is not great. The fact that the
Business needs in this area of study and acquisition of primary computer
And the purchase of information service and amount of insurance does not exceed a few thousand all together
Dollars and this amount can not invest seriously in any other area.
With a huge supply of services in this area is easy to find
Under experienced in the currency market. What remains after that depends on
Stores. Conclude from this that the success in this area depends on you
More personal than any other work.
The main thing for success in this market is not the amount of money that you enter
The market as much as Hoturkiz Permanent study at the market, and understanding
Mikhanykyate and wishes of the participants. This results in the continuous improvement of the way
Your business and organization of your trading. This did not happen to successful people in the currency market
Depended on the capital only.
Currency regime has made the world a long way in a thousand years from the date of
Human, but the changes that occur in today's most interesting was
Not to notify the minds of anyone before. There are two basic alter define
The new format of the global system of currencies:
The cash break now fully separated from any holder of material;
Technology has enabled communication and information exchange powerful collection of
Financial systems of different countries in a global financial system one.
Attractive features of the Forex market
Liquidity: the market is based on large sums of money are not limited to able to open
And close any deal prices set for the currencies at the moment. I
The high degree of liquidity huge attraction for any investor as it
Give him the freedom to open and close any deal, any size.
Effectiveness: the proportion of the work of the market around the time it is not on
Traders in the market waiting to interact with a particular event, as the case may be
In the stock market and other markets.
Flexible transactions: trading system is flexible in the market as it
You can open the deal for a limited time previously by the desire of the investor thing that
Can be planned in advance of his coming.
Cost: not for the Forex market has traditionally expenses, any commission or any
Expenses, expenses, other than - or profits - the difference between the offer price
The asking price (BID / ASK).
Standard price: the proportion of the high degree of liquidity in the market, we find
The vast majority of sales can be carried out at a uniform
Which avoids the problem of investor to offset volatility in the market
Future sales or stock exchanges and other exchange markets where they are sold in the
Certain time and a specified price only a limited amount of currency.
Directional market: that the movement of any of the currencies market, a particular direction can be
Followed by a period of time. And give each a specific currency for the price change
With time own only thing that gives the investor the possibility of
Dealing in the market with tact.
Size of the margin: to be determined in the Forex market the size of the margin loan or Mil
Shoulder only agreement between the client and that the bank Omketb Brokerage
Given by the director of the market and is usually 1:100 to pay any customer
Insurance of 1000 dollars can deal worth 100 thousand dollars.
That the use of the large margin with currency fluctuations make this
And profitable market, but also great risks.
Concepts that are wrong:
There are concepts that are wrong for the market first is that the work in this
Market resembles the play at roulette - one wins a large amount of money
And lose the rest. It is natural that the risks are great. However, Forex
Not a game of roulette, in the changing currency rates play certain laws.
First adopt the value of the currency specific indicators of the country's economy
Specified. Secondly determined by the preferences and expectations of market participants.
Despite the difficult work of expectations, but possible. Work on the market
Forex is confirmed by the ratio because analyzes positives include more than
Coincidence.
Today we find that the risk and the risk is part and parcel of doing
Work actively in market conditions, or simply can say that the amount
The real success of any project or deal could be different from what was expected
When the decision. But speculation in the capital market is the most risky
And dangerous because it can be loss ratio of complexity and difficulty of predicting the behavior of
The market can never guarantee a positive result. That this fact has alienated
Many work in the capital market although it is accessible to
All thanks to electronic communication technology and the huge base
To analyze the information.
The second concept that profit is the wrong person must be offset by
Not necessarily the loss of others. But speculation in the Forex market is not in the
Many cases at the expense of changing currency rates, because there is a large group
Of participants using the currency exchange for other purposes
(Import and export, investment and tourism) is not playing fluctuations
Prices for a short time an important role for them. Thanks to the freedom to change
Currencies basic free floating rate determined by the supply and demand
Make the process of changing the currency in itself a source of income, ie, that the currency
Is a commodity like any other commodity.
The fact that the currency market like other markets, IMF is not
Never in equilibrium. The condition can be described as the search for a permanent
The balance slider.
What is required for success in the currency market? The basic vehicle
To achieve this goal can be formed as follows:
Predict the correct direction of change of exchange rates;
Achieve a minimum of loss when the market situation is unpleasant;
Considered to deal with the funds used in trading.
The prediction right price depends on the deep study of the market.
Usually had three forms of market analysis: analysis of news and technical analysis
And analyze myself. And be combined and considered the right of these three analyzes
Is the guarantee for the correct prediction in the currency market.
News analysis includes the study of economic factors and political
That may affect the currency market. For example, reports Bank policies
Reserve Central American and transactions economy, and the statements of
Of the important events and other important. The main objective of
Fundamental analysis is the analysis of key factors and their impact on
Dynamics of prices in the currency market. The shops on the FOREX market is
Always familiar with the status quo in the world.
Technical analysis is an analysis of the market situation changes based on the
The previous price. And used in this analysis graphics Albianh
Reflecting price changes for a certain period of time. We Analysis
Technical as well as to understand the general market situation at the moment, and indicators
Several predictable price changes in the near future. The analysis
Art based on the fact that the price to take into account all
Factors that could affect the market - economic and political
Psychological and other factors - are all already in the account when
Price-fixing. And if the market was really a result of market movement consist
Of a large number of participants taken after analysis of the enormous amount
Information when they convene deals. The behavior of prices is
As a result of these decisions, and you have to monitor each input information
In this market. That the necessary shops is the fact few - to know
Direction of movement of prices. And technical analysis, gives a tremendous amount of tools
Enable us to draw useful forecasts of graphs of prices.
Psychoanalysis is to analyze the behavior of traders in the market and their
Psychological and expectations, hopes and fears. This type of analysis
Very important because the proportion of health is very high. We should not forget that behind the plants
Computer, which gives human beings and price expectations on the behavior depends, in
End currency rates.
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