?What is Forex

?What is Forex

The word "forex" means short, the foreign exchange market or the Stock Exchange of global foreign money which suited to the word "FOReign EXchange market" in English. And speculation is through buying and selling currencies to acquire basic share from core operations in the forex market is the U.S. dollar (USD) (the base currency) and euro (EUR) and the pound sterling (GBP) and the Swiss franc (CHF) and Japanese yen (JPY). And are buying and selling those currencies in U.S. dollars or other currencies among themselves, which defines currency pairs, in return for the U.S. dollar or any currency against another currency value. And is considered speculative currency trading in the bourses Win, and also the most risky, because of the high volatility of the currency from the upward trend to trend downward, or vice versa. In addition to currency market there are other types of stock exchanges are: gold and silver exchanges, Petroleum Exchange, shares and bonds, agricultural crops and energy. The currency exchanges are characterized by various indicators and technical analysis, news analysis and rapid access to profits. The daily volume for the circulation of currency in forex market to reach $ 3 trillion. And comparable mention that the activities of the New York Stock Exchange volume of shares not exceeding 300 billion dollars per day, meaning it needed a half years for the New York Stock Exchange volume to hit market currencies. And to the bond markets and selling future (Future - FUTURE) fundamental difference and inadequate compared to the labour market: it depends on the work at the end of today and resume work with the next morning. And it is natural that if you are trading in the markets of Germany, for example, occurred in Latin events with a significant impact on the market, you might find a market at the start of work varies considerably different than expected. The forex market is a market literal sense of the word, since it has no center and has no place when trading in a particular exercise. Trading in the exercise via the Internet and computer damage at one time among the hundreds of banks around the world. Hundreds of two million dollars are sold and purchased every few seconds, and this is the so-called currency trades.

Forex market combines four regional markets: Australian and Asian, European and American. And continue trading operations in which every working day, and the market operates around the clock or 24 hours a day.

Relative calm and notes from 20:00 am until 01:00 GMT and is due to the closure of the New York Stock Exchange eighth in the evening and start work on the Tokyo Stock Exchange one o'clock.

The currency market is not about working hours because Almtjarh stock exchanges between banks, which are located in different parts of the world.

And the prices of large multi-currency changes, which may help to do certain business operations within one day.

It is well known that the declines significant impact on financial markets which may lead to the collapse of shares or bonds.

The forex market Falling U.S. dollar (for example) means the price rise of other currencies and there is no collapse of the stock market or bonds. Forex market was founded (FOREX) of financial transactions between banks in 1971 when it turned transactions in global trade from using fixed values of the currencies of the values of the flotation. The output of this group financial transactions carried out by agents of the financial markets to convert a certain amount of money the currency of one country to another country the value of work agreed in advance to a specific date. And identifies specific currency conversion rate for other currency simply: supply and demand for conversion approved by the parties.

The volume of operations in the global capital market in steady growth. This evolution is significant in world trade and lifting the ban on currencies in many countries. That 80% of all transactions is a speculation in the currency market designed to obtain profits from currency differences. These speculations and attract many participants from both financial organizations or individual investors. Result of the tremendous evolution in communications technology in the last two decades change this market in itself to a large degree. The profession currency trader which was surrounded by an aura of secrecy has become almost unanimous. The trade in currencies, which was until recently confined to a monopolistic big banks became available to all a result of electronic commerce. Even the largest banks in favour of electronic trading as well as the personal transactions between two parties. The aim of the Forex market as a potential person to use financial, mental and psychological blow was not luck.

Some may succeed in this, but not for long. The basic advantage of the currency market is that the success of using a place of intellectual potential. It is important characteristics of the currency market is characteristic balance Although this seems strange. Everybody knows that the fundamental characteristic of the financial market is the sudden nosedive. But the Forex market is different from the stock market in that it does not fall. When the stock lost value this collapse. But if the dollar collapsed example, it means only that other currency became stronger - an example of the Japanese yen, which has become in a few months in 1998 the strongest quarter for approximately U.S. dollars.

This has reached a decline of the dollar for some days in that period of tens of per cent. Although this did not happen collapse of the market transactions continued as usual. In this limited stability of the currency market and the associated work. Currency Liquidity is full of goods can be bought or sold at all times. Operates the currency market every time, non-stop was not linked to specific working hours of the Stock Exchange, transactions between banks are located in different parts of the globe. The changes in currency rates are significantly and several times be sufficient to carry out several operations every day. If you have a proven trading technology and content area, you can make it work not compare the effectiveness of its effectiveness in any other area. Therefore, we find the major banks acquire the most expensive equipment and used dozens of specialist trading in various sections of the market.

The expenses to engage in this work is not great. The fact that the work requirements in this area of study elementary and acquisition and purchase of computer information service and the value of insurance all together do not exceed a few thousand dollars and this amount can not invest seriously in any other field. With a huge supply of services in this area easy to find an experienced agent in the currency market. What is left after that depends on the stores. Draw from this is that success in this area depend on myself more than in any other work. The basic thing for success in this market rather than the volume of money entering the market as much as Hoturkiz Permanent upon study the market, and understand mechanics and the wishes of the participants. Result is continuous improvement of the way your organization stores.

This did not happen that person succeeded in the currency market relied on the capital only. We have cut the global currency long way in a thousand years of human history, but the changes that occur when the most interesting day was not unthinkable for one before. There is a fundamental change define the new format of the global currencies: The Monetary inseparable now fully detached from any holder of a material; Technology has enabled communications and information exchange powerful collection of financial systems of different countries in the global financial system simultaneously. The attractive features of the Forex Market Liquidity: based on money market funds unlimited able to open and close any specific transaction prices of currencies at the moment. In the high degree of liquidity huge attraction for any investor as it gives him the freedom to open and close any deal, any size. Effectiveness: the proportion of work in the market around the clock, it was not the traffickers in the market waiting to interact with a particular event, as the case may be on the stock market and other markets. Flexibility of transactions: Trading System is flexible in the market because it could open the deal for a limited time as the former investor desire thing that can be planned in advance of his coming.

Cost: no Forex market traditionally allocated any commission or any other except the outgoing outgoing - or profits - the difference between the price of supply and demand price (BID / ASK). Standard rates: the proportion of the high degree of liquidity in the market, we find that the vast majority of sales can be implemented flat rate, which avoids the problem of investor offset by the fluctuation in the market for future sales or stock exchanges and currency markets where the other sold at a given time and only at a price fixed quantity Limited currency. Directionality of the market: that the movement of any of the currencies market certain direction can be followed by a period of some time. And giving all his specific change with the times the price of its own only thing that gives investors the possibility of dealing in the market with tact. The size of the margin: to be determined in the Forex market size or margin loan, named Stinger only agreement between the dealer and that the bank Omketb brokerage given by the director of the market is usually 1:100 any customer to pay insurance of $ 1000 can hold a deal equal to 100 thousand dollars. The use of this large margin with currency fluctuations make this profitable market, but also great risks.

Erroneous concepts: There are two concepts misconception Forex market first, that work in this market resembles the game at Roulette - one wins a large amount of money and lose the rest. Of course, the risk substantially. But Forex is not a game of Roulette, in the changing currency rates play certain laws. First, the value of the currency depends on the specific indicators of the country's economy designate. Secondly determined by the preferences and expectations of dealers in the market. Despite the difficult work of expectations, but possible. The work in the Forex market confirms this analysis because the proportion of positives include more than a coincidence.

Today we find that risk and risk is part and parcel of doing work actively in market conditions, or simply can say that much of the real success of any project or a deal could be different from what was expected when the decision-making. But speculation in the capital market is more risky and dangerous because he can defeat the proportion of the complexity and difficulty of predicting Conduct market can never guarantee a positive result. That this fact alienated many people from working in the capital market although it is accessible to all thanks to electronic communication technology and huge base of information analysis . Second is the mistaken notion that the profit that a person must necessarily offset the loss of others. But speculation in the Forex market is not in many cases at the expense of changing currency rates, because there is a large group of participants using currency exchange operations for other purposes (import and export, investment and tourism) did not play price fluctuations for a short time an important role for them. Thanks to the freedom to change currencies fundamental global free floating rate determined by supply and demand becomes the process of changing the currency in itself a source of income, namely that the currency is a commodity like any other goods. The currency market reality, like other exchange markets is never in balance.

The condition can be described as the status of a permanent search for balance slippery slope. What is required for success in the currency market? The primary vehicle for access to that can be formed as follows: Predict the correct direction of change of exchange rates; Achieve the minimum loss when the market situation unpleasant; Haphazard deal with the money used in trading. To predict the correct price depends on the deep study of the market. Usually had three forms of market analysis: analysis of news and analysis of technical and psychological analysis. And be careful and proper combination of these three analyses is the guarantee for the correct prediction in the currency market. News analysis study contains economic and political factors that may affect the currency market. For example, reports of the Central Reserve Bank policies that the U.S. economy and basic transactions, statements and important statesmen and other important events. The main objective analysis of the statute is to analyse the main factors and their impact on the dynamics of prices in the currency market. The shops in the Forex market always be familiar with the status quo globally. Technical analysis is an analysis of the market situation based on previous price changes.

Used in this analysis graphics Libya, which reflects price changes for a certain period of time. We further technical analysis to understand the general market situation at the present time, several indicators can predict price changes in the near future. The technical analysis based on the fact that the price movements into account all the factors that could affect the market - economic, political, psychological and other factors - are all advance into account in determining prices. And if the market truly market consists jolted result of a huge number of participants taken after an analysis of the enormous amount of information when they convene deals. The behaviour of prices is a result of these decisions, you have to monitor each input information in this market. What is needed is a few shops - to know the direction of movement of prices. The technical analysis gives a great deal of tools enable us to draw useful forecasts of graphs of prices. Psychoanalysis is to analyse the behavior of traders in the market and their psychological and expectations, hopes and fear. This type of analysis is very important because the very high proportion of his health.

We must not forget that behind the computer stations that give people the expectations of prices and their actions depend on the ultimate currency.