Forex trading is the trading of currencies from different countries with each other. Forex is an abbreviation of Foreign Exchange. For example, currency in circulation in Europe called Euro (EUR) and in the United States, the currency in circulation is called the U.S. Dollar (USD). An example of forex trading is to buy euros, while simultaneously selling the U.S. Dollar. This is called will be abbreviated as EUR / USD.
Meanwhile, the name The Forex market is non-stop cash market where currencies are traded states, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold in local and global markets then 'experienced an increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time event.
Forex market is often also called the foreign exchange market, this is a huge market with growing financial and liquid (can deposit and liquidated at any time) that operates 24 hours a day. This is not a market in the traditional sense because there is no central trading location. Most trading is done through electronic trading networks. Foreign exchange market allows companies, banks and other financial institutions to buy and sell foreign currency, in large quantities.
The main market for the currency markets are "inter bank" where banks, large corporations and large financial institutions manage the risks associated with fluctuations in currency exchange rates.
MARKET ACTORS
Anyone who does trade forex?
In general, forex traders coming from various groups including:
* Customer
* Banks and Financial Institutions
* Broker
* Government
* Business Performer
* Speculators
Customers, such as multinational corporations, to participate in the forex market because they need foreign currency for their trade in other countries. Like for example, a particular company based in the UK need to use the foreign exchange market to buy the currency they need to pay for their partner companies in other countries that sell heavy equipment.
Banks and financial institutions, is the most active participants in the forex market. They deal with other financial institutions to ask their foreign exchange and currencies they can buy what they need in the forex market. In addition to central banks and governments, one of the biggest players in forex transactions are banks. Interbank market is a market where big bank transact among themselves and determine the currency price be seen by traders as individual as we do on a computer screen.
Banks, in general, act as dealers who buy / sell currencies at the bid / ask itself. One way the banks make money is to sell the currency at a higher price than he bought to their customers. Because the forex market is not centralized or decentralized, then the natural thing to see one bank with another bank had a slight difference in the exchange rate
Broker is a company with links computer software or phone lines to banks around the world. It is the job of forex broker to find out what bank has the highest level to buy the currency and what the bank has the lowest level to sell the currency.
Using a broker allows the bank to find the best deal available in the world. Forex brokerage firms, but is not related to money itself but only a commission fee for their services.
Government, forex is the most influential actors, the central bank. In many countries, the central bank is an arm of government and its policies run together with the government. However, some governments feel more independent. A central bank more effective in carrying out their duties to boost the economy. Regardless of how indipenden a central bank, government representatives are regularly consulted by central bank representatives to discuss monetary policy. Thus, governments and central banks usually have a package in terms of monetary policy. Central banks often intervene in the market for the purposes of a particular country's economy.
Business Performer, is one of the biggest clients of these banks, those engaged in international transactions. Both businesses are selling goods to international clients or buy goods from international suppliers, they have to deal with the volatility of currency fluctuations. Uncertainty becomes hated by management and business owners. Faced with foreign exchange risk is a major problem for multinational companies. For example: a company in Germany to order equipment from factories in Japan to be paid in yen a year from now. Because exchange rates can fluctuate wildly dg throughout the year, the German company will not know whether the Euro will be spend more or not at the time of shipment later. One way for businesses to reduce uncertainty due to foreign exchange risk is to go to the spot market and transact directly to the foreign currency they need. But, unfortunately, a businessman may not have enough money on hand to make a spot transaction or do not want to hold the amount of foreign currency which is very much for a long time. Hence business people often apply the hedging strategy to lock a specific currency at a certain price for a position in the future.
Speculators, they were instead to hedging so as not subject to price movements for reasons of international transactions, speculators are trying to earn money by taking advantage of price fluctuations. One of the most famous speculator George Soros possible. Billionaire who is known to decrease speculation in the British Pound generating 1.2 billion dollars less than a month! Some critics say that such people are responsible for the Asian financial crisis of the late '90s.
CURRENCY OF MERCHANTABILITY?
The following are the major currencies traded in the market:
Symbol Country Currency
USD United States Dollar Buck
EUR Euro members Euro Fiber
JPY Japan Yen Yen
GBP Great Britain Pound Cable
CHF Switzerland Franc Swissy
CAD Canada Dollar loonie
AUD Australian Dollar Aussie
NZD New Zealand Dollar Kiwi
The symbol consists of three letters, where 2 represents the first letter of the country, while a recent letter indicating the name of the currency prevailing in the country.
Example: AUD, AU = Australia, D = Dollars.
WHEN FOREX MERCHANTABILITY?
Forex spot market is almost unique in the world market. Where the market is open 24-hours a day. At any time, somewhere around the world where the financial center is open for business, as well as banks and institutions exchange currencies, every hour, day and night, leaving only a small time gap of the weekend.
So you can trade either in the morning, noon or night. Maybe this time you place it was late and people have been asleep for the rest. But elsewhere in the world Is not currently under daylight, where people are actively doing business.
See table below to see when we can follow the trade in FX.
Time Zone New York
Tokyo Open 7:00 am
Tokyo Close 4:00 am
London Open 3:00 pm
London Close 12:00 pm
New York Open 8:00 am
New York Close 5:00 pm
Coupled with the market who started most mornings, but less so crowded, that is, New Zealan and Australian markets. So practical FX trading takes place for 24 non stop. Starting time when early Monday in parts of NZ / AU until Saturday morning in parts of the U.S. (New York). And the total closed on Sundays.
FOREX MARKET
The forex market is the largest and most popular reply. Has the largest capitalization, well in excess of the stock market, bonds, etc.. Where trade DOLLAR currencies dominate with a share reaching 86% of all transactions, followed by EURO YEN 37% and 16.5%.
See chart below.
Reasons Forex Trading
There are many reasons and benefits of why people choose to make a profit forex trading, such as:
1. No commission (No Commissions).
No clearing fees, exchange fees, no government fees, no brokerage fees. Compensation of the broker compensation for their services through something called the common difference of the supply-demand price (the bid-ask spread)
2. No intermediaries (No middleman).
Spot currency trading eliminates the middlemen practical, and allows you to trade directly to the market.
3. No amount of a fixed LOT (LOTS of No Fixed Size).
Unlike the futures markets or stock, in the forex market, you determine your own lot size. This allows traders to participate even though the account or fund $ 250.
4. Open 24 hours.
In accordance we have explained above, the forex market is open from Monday morning until Saturday morning. Continued non-stop, this is remarkable. For the trader / you who want to do in a half-life / leisure, you can adjust the schedule with ease. You can determine when you make a trade (morning, afternoon, night, early morning, etc.).
5.Opportunities of two directions to make a profit
Forex trading always involves two currencies, is like when you are disappointed in the analysis of a single currency will go up on the other. Therefore there is always the potential to generate profits whether the market goes up or down.
If you believe the currency will be stronger (up) soon do buy position, then wait for prices to rise, do closed (sell) when the currency exceeds the purchase price you earlier.
If you believe the currency will weaken (down) to do a sell position, wait for prices to fall, do closed (buy) when the currency below the price you did.
As in the example below:
Opening of Euro 1.1750 / 1.1753, you analyze that the euro will son be 1.1770/1.1767 position, then open buy position when the price (then you buy at the position of 1.1753), and when the position changed to 1.1770/1.1773, do the closed position / sell the currency (at the position 1.1770)
Then you can profit in two occasions or direction.
6. Leverage.
In Forex trading, a small amount of deposit could be analogous to trade with a contract value is much larger (Levers) .. Leverage gives the trader the opportunity to make a jim-dandy profit, and at the same time keep risk capital to remain minimal.
For example, Forex brokers offer leverage 1-200, this means that the dollar by a margin deposit of $ 50 will allow traders to trade at $ 10,000. Similarly, with $ 500 dollars, one could trade the equivalent of $ 100,000.
By trading on a large number of automatic reply will be even greater profits. And vice versa. Hope to always remember, that leverage should be chosen and used wisely, with a correct risk management.
With leverage you can get rich quick (lucky) but also can quickly go bankrupt (loss).
7. High Likuiditas.
Because the forex market is very large, this means that under any circumstances and whenever you can quickly and buy and sell. Even with the trading system you can manage to close the gains or losses on certain positions.
8. Demo Account facilities, graphics, tools, indicators, news, etc..
Now, almost all brokers provide demo facility, where the facility is the beginner (for those who want to learn), will be able to perform as a normal trade transactions. Without fear, because in use is a virtual fund (money toys). Plus with the tools that are provided (charts, news, indicators, etc.) all traders to analyze the needs can be met.
9. Minimal facility with unlimited potential.
To be able to conduct forex transactions, now you only need a computer or laptop, or even simply with smart phones. Coupled with the ability to connect to the internet. Well enough with a computer + internet, you are able to transact, anywhere, anytime. Easy is not it ..
Meanwhile, the name The Forex market is non-stop cash market where currencies are traded states, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold in local and global markets then 'experienced an increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time event.
Forex market is often also called the foreign exchange market, this is a huge market with growing financial and liquid (can deposit and liquidated at any time) that operates 24 hours a day. This is not a market in the traditional sense because there is no central trading location. Most trading is done through electronic trading networks. Foreign exchange market allows companies, banks and other financial institutions to buy and sell foreign currency, in large quantities.
The main market for the currency markets are "inter bank" where banks, large corporations and large financial institutions manage the risks associated with fluctuations in currency exchange rates.
MARKET ACTORS
Anyone who does trade forex?
In general, forex traders coming from various groups including:
* Customer
* Banks and Financial Institutions
* Broker
* Government
* Business Performer
* Speculators
Customers, such as multinational corporations, to participate in the forex market because they need foreign currency for their trade in other countries. Like for example, a particular company based in the UK need to use the foreign exchange market to buy the currency they need to pay for their partner companies in other countries that sell heavy equipment.
Banks and financial institutions, is the most active participants in the forex market. They deal with other financial institutions to ask their foreign exchange and currencies they can buy what they need in the forex market. In addition to central banks and governments, one of the biggest players in forex transactions are banks. Interbank market is a market where big bank transact among themselves and determine the currency price be seen by traders as individual as we do on a computer screen.
Banks, in general, act as dealers who buy / sell currencies at the bid / ask itself. One way the banks make money is to sell the currency at a higher price than he bought to their customers. Because the forex market is not centralized or decentralized, then the natural thing to see one bank with another bank had a slight difference in the exchange rate
Broker is a company with links computer software or phone lines to banks around the world. It is the job of forex broker to find out what bank has the highest level to buy the currency and what the bank has the lowest level to sell the currency.
Using a broker allows the bank to find the best deal available in the world. Forex brokerage firms, but is not related to money itself but only a commission fee for their services.
Government, forex is the most influential actors, the central bank. In many countries, the central bank is an arm of government and its policies run together with the government. However, some governments feel more independent. A central bank more effective in carrying out their duties to boost the economy. Regardless of how indipenden a central bank, government representatives are regularly consulted by central bank representatives to discuss monetary policy. Thus, governments and central banks usually have a package in terms of monetary policy. Central banks often intervene in the market for the purposes of a particular country's economy.
Business Performer, is one of the biggest clients of these banks, those engaged in international transactions. Both businesses are selling goods to international clients or buy goods from international suppliers, they have to deal with the volatility of currency fluctuations. Uncertainty becomes hated by management and business owners. Faced with foreign exchange risk is a major problem for multinational companies. For example: a company in Germany to order equipment from factories in Japan to be paid in yen a year from now. Because exchange rates can fluctuate wildly dg throughout the year, the German company will not know whether the Euro will be spend more or not at the time of shipment later. One way for businesses to reduce uncertainty due to foreign exchange risk is to go to the spot market and transact directly to the foreign currency they need. But, unfortunately, a businessman may not have enough money on hand to make a spot transaction or do not want to hold the amount of foreign currency which is very much for a long time. Hence business people often apply the hedging strategy to lock a specific currency at a certain price for a position in the future.
Speculators, they were instead to hedging so as not subject to price movements for reasons of international transactions, speculators are trying to earn money by taking advantage of price fluctuations. One of the most famous speculator George Soros possible. Billionaire who is known to decrease speculation in the British Pound generating 1.2 billion dollars less than a month! Some critics say that such people are responsible for the Asian financial crisis of the late '90s.
CURRENCY OF MERCHANTABILITY?
The following are the major currencies traded in the market:
Symbol Country Currency
USD United States Dollar Buck
EUR Euro members Euro Fiber
JPY Japan Yen Yen
GBP Great Britain Pound Cable
CHF Switzerland Franc Swissy
CAD Canada Dollar loonie
AUD Australian Dollar Aussie
NZD New Zealand Dollar Kiwi
The symbol consists of three letters, where 2 represents the first letter of the country, while a recent letter indicating the name of the currency prevailing in the country.
Example: AUD, AU = Australia, D = Dollars.
WHEN FOREX MERCHANTABILITY?
Forex spot market is almost unique in the world market. Where the market is open 24-hours a day. At any time, somewhere around the world where the financial center is open for business, as well as banks and institutions exchange currencies, every hour, day and night, leaving only a small time gap of the weekend.
So you can trade either in the morning, noon or night. Maybe this time you place it was late and people have been asleep for the rest. But elsewhere in the world Is not currently under daylight, where people are actively doing business.
See table below to see when we can follow the trade in FX.
Time Zone New York
Tokyo Open 7:00 am
Tokyo Close 4:00 am
London Open 3:00 pm
London Close 12:00 pm
New York Open 8:00 am
New York Close 5:00 pm
Coupled with the market who started most mornings, but less so crowded, that is, New Zealan and Australian markets. So practical FX trading takes place for 24 non stop. Starting time when early Monday in parts of NZ / AU until Saturday morning in parts of the U.S. (New York). And the total closed on Sundays.
FOREX MARKET
The forex market is the largest and most popular reply. Has the largest capitalization, well in excess of the stock market, bonds, etc.. Where trade DOLLAR currencies dominate with a share reaching 86% of all transactions, followed by EURO YEN 37% and 16.5%.
See chart below.
Reasons Forex Trading
There are many reasons and benefits of why people choose to make a profit forex trading, such as:
1. No commission (No Commissions).
No clearing fees, exchange fees, no government fees, no brokerage fees. Compensation of the broker compensation for their services through something called the common difference of the supply-demand price (the bid-ask spread)
2. No intermediaries (No middleman).
Spot currency trading eliminates the middlemen practical, and allows you to trade directly to the market.
3. No amount of a fixed LOT (LOTS of No Fixed Size).
Unlike the futures markets or stock, in the forex market, you determine your own lot size. This allows traders to participate even though the account or fund $ 250.
4. Open 24 hours.
In accordance we have explained above, the forex market is open from Monday morning until Saturday morning. Continued non-stop, this is remarkable. For the trader / you who want to do in a half-life / leisure, you can adjust the schedule with ease. You can determine when you make a trade (morning, afternoon, night, early morning, etc.).
5.Opportunities of two directions to make a profit
Forex trading always involves two currencies, is like when you are disappointed in the analysis of a single currency will go up on the other. Therefore there is always the potential to generate profits whether the market goes up or down.
If you believe the currency will be stronger (up) soon do buy position, then wait for prices to rise, do closed (sell) when the currency exceeds the purchase price you earlier.
If you believe the currency will weaken (down) to do a sell position, wait for prices to fall, do closed (buy) when the currency below the price you did.
As in the example below:
Opening of Euro 1.1750 / 1.1753, you analyze that the euro will son be 1.1770/1.1767 position, then open buy position when the price (then you buy at the position of 1.1753), and when the position changed to 1.1770/1.1773, do the closed position / sell the currency (at the position 1.1770)
Then you can profit in two occasions or direction.
6. Leverage.
In Forex trading, a small amount of deposit could be analogous to trade with a contract value is much larger (Levers) .. Leverage gives the trader the opportunity to make a jim-dandy profit, and at the same time keep risk capital to remain minimal.
For example, Forex brokers offer leverage 1-200, this means that the dollar by a margin deposit of $ 50 will allow traders to trade at $ 10,000. Similarly, with $ 500 dollars, one could trade the equivalent of $ 100,000.
By trading on a large number of automatic reply will be even greater profits. And vice versa. Hope to always remember, that leverage should be chosen and used wisely, with a correct risk management.
With leverage you can get rich quick (lucky) but also can quickly go bankrupt (loss).
7. High Likuiditas.
Because the forex market is very large, this means that under any circumstances and whenever you can quickly and buy and sell. Even with the trading system you can manage to close the gains or losses on certain positions.
8. Demo Account facilities, graphics, tools, indicators, news, etc..
Now, almost all brokers provide demo facility, where the facility is the beginner (for those who want to learn), will be able to perform as a normal trade transactions. Without fear, because in use is a virtual fund (money toys). Plus with the tools that are provided (charts, news, indicators, etc.) all traders to analyze the needs can be met.
9. Minimal facility with unlimited potential.
To be able to conduct forex transactions, now you only need a computer or laptop, or even simply with smart phones. Coupled with the ability to connect to the internet. Well enough with a computer + internet, you are able to transact, anywhere, anytime. Easy is not it ..
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