Friday, 30 October 2009

Forex Introduction

Forex is the world's largest and most liquid market for trading. Many think that the Forex the best home business you can ever be, despite the efforts of ordinary people have the opportunity to do to participate in trading foreign currencies for profit (in the same way banks and large companies) since 1998, only now to be cool , hip, new "thing" to talk about at parties, business events and other social events.

Despite some of the loosely guarded secret, it's every day more and more investors are switching to electronic currency trading worldwide revenue and profitability for a number of benefits and advantages over traditional trading vehicles, like stocks, bonds and commodities.

But still, every time something new or just seems to be a part of social conversation, news articles, and water cooler gossip, misconceptions must be overcome, the mind must be open and clear the slate, fresh with the right information.

So, in this article, it is my attempt to provide a solid, but not too much detail to give information about the "FX (Forex), ie, what is it and why they exist.

As said, a successful entrepreneur, forex trading is like taking money out of the ground. Forex trading is not abandoned, as it take for someone else. "The people in the industry also said that forex trading is like an ATM machine on your own computer.

The following is a statement (which I feel appreciate to know) what and how the Forex is a group of traders who profit from it:

The Foreign Exchange Market, also known as "forex" or "FX" market, is the (cash) market for currency.

But do not buy false FX trading as a futures market where you buy a contract with a specific currency at a price that will come with the time.

What FX traders is much more risky than trading currencies on the futures market, much more profitable and much easier than trading shares.

You might be wondering where it was in ... or ... such as the FX market access?

The answer is: FX Trading is not bound to a floor and not centralized on an exchange like stocks and futures markets. FX market is "market as over-the-counter (OTC) or 'interbank, due to the fact that the entire market will be executed electronically, continuously within the bank network for 24 hours.

Yes, if the first time you heard of an electronic market of all, I know this may sound a little interesting for you.

Here is what you are actually traded, you) to the Foreign Exchange (Forex market:

In principle, such as large banks, the foreign exchange market to itself from fluctuations in exchange rates to protect the various currencies, as investors, what the FX traders exchanged and one other foreign currencies. So, in fact, their electronic trading partner currencies and the price that we are given the exchange rate between two currencies.

In other words, only the listed price, how much of the same coin, worth 1 of the other currencies.


EUR / USD last trade 1.2850 - One Euro is worth U.S. $ 1.2850 first dollars.The currency (in this example, the EURO) called the base currency and the second one (/ USD) as the counter or quote currency.

Forex has a daily trading volume of approximately U.S. $ 1.5 trillion - 30 times greater than the total volume of all U.S. equity markets. This means that 1498574 qualified traders could ever take 1 million U.S. dollars from the forex market and forex every day more and more money than to have to leave the New York Stock Exchange every day!

Forex plays an important role in the global economy and it is always a great demand for foreign exchange. International trade increases the technology and communications increased. As long as it is the international trade, it will be a Forex market. FX market, it should be such that a country like Japan can sell products in the United States and in a position to Japanese yen in exchange for U.S. Dollar.

There are a lot of money by using the Forex for many dealers who have the right trading techniques / tactics that they should be using the opportunity created. And with only 5% of daily sales volume from banks, governments and large enterprises to hedge, which is 95% of speculation and the profit necessary.

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