vendredi 18 septembre 2009

What is Forex?

The word "forex" means short, the foreign exchange market or the stock market for global foreign money which suited for the word "FOReign EXchange market" in the English language. And be speculation by buying and selling major currencies which have the basic share from operations in the forex market is the U.S. dollar (USD) (base currency) and the euro (EUR) and Sterling (GBP) and Swiss franc (CHF) and Japanese Yen (JPY).

Buying and selling those currencies and the U.S. dollar or other currencies among themselves, which defines spouses of currencies and against the U.S. dollar or any currency against another currency value. And considered speculative currency trade in profitable stock exchanges, and also the most risky, because of rapid fluctuations in the currencies of the upward trend to trend downward, or vice versa. In addition to the currency market there are other types of stock exchanges are: gold, silver, oil stocks, shares and bonds, energy and agricultural crops. The currency exchanges are characterized by various indicators and technical analysis, news analysis and rapid access to the profits.

The daily volume of currency trading in the forex market to reach $ 3 trillion. And for the sake of comparison, the volume of activities that the New York Stock Exchange does not exceed $ 300 billion per day, meaning it needed half a year to New York Stock Exchange the volume of the currency market.

And I have a bond market and sell the future (Future - FUTURE) and lack of a fundamental difference compared to the forex market: they stop working at the end of the day and resume work with the next morning. It is normal that if you are trading in the markets of Germany, for example, and the events occurred in the United States a significant impact on the market, you may find the market at the beginning of work is significantly different than expected.

The forex market is not a market literal sense of the word, since it has no center, no place has a certain exercise a trade. The trading exercised through contact telephone and Internet computer at one time among hundreds of banks around the world. Hundreds of jobs and sold dollars to buy every few seconds, and this is what is called currency trading.

Forex market combining four regional markets: Australian and Asian, European and American. And continue operations where all trading days of work, and the market operates around the clock 24 hours a day. And the relative calm from 20:00 pm until 01:00 GMT, and was due to the closure of the New York Stock eighth in the evening and start work on the Tokyo Stock Exchange at one o'clock in the morning.

The currency market is not about working hours because the stock traded between banks, which are located around the world. And the prices of large multi-currency changes, which helps to do some business operations in a single day. It is well known that the declines significant impact on the financial markets, which could lead to the collapse of stocks or bonds. The forex market decline in the dollar (for example) means the price rise of other currency and there is no such mention the collapse of shares or bonds.

Founded forex market (FOREX) for the 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 floatation. The total output of the financial transactions carried out by agents of the financial markets to divert a certain amount of money in the currency of one country to another country currency value agreed in advance to a specific date. And identifies specific currency conversion rate for other currency simply: supply and demand for convertible approved by the parties.

The volume of transactions in the international money market in steady growth. This development 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 aimed at obtaining profits from currency differences. This speculation and attract many participants, both financial organizations or individual investors.

As a result of the tremendous development in communications technology in the last two decades has changed the market in itself to a large degree. That the profession currency trader, which was surrounded by an aura of secrecy has become almost unanimous. The trade in currency, which was until recently limited to major banks monopolistic become accessible to all as a result of electronic commerce. Even the largest banks in favor of trading as well as personal electronic transactions between two parties.

The aim of the forex market as a potential person for the use of financial, mental and psychological blow is not luck. Some may succeed in this, but not for long. The basic advantage of the currency market is that the success of using intellectual potential.

One interesting feature of the currency market is characteristic balance, although this seems strange. Everyone 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 stocks lose value 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 has become in a few months of 1998 the strongest quarter for almost the dollar. 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 and the transactions continued as usual. In this limited stability of the currency market and the associated work. The currency is fully liquidity goods can be purchased or sold at all times.

Currency market works all the time-stop is not linked to hours of work designated for Exchange, the transactions between banks located in different parts of the globe. That changes in currency rates are significantly and several times be sufficient to carry out several operations each day. If you have a proven trading technology and secured the area you can make work not compare the effectiveness of its effectiveness in any other area. Therefore we find the major banks acquire the most expensive equipment used dozens of specialist trading in the various sections of the currency market.

Expenditures to engage in this work is not great. In fact, the work requirements in this area of study and primary acquisition and the purchase of computer information service and does not exceed the value of insurance together a few thousand dollars and this amount can be invested seriously in any other area. 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 depends on you personally more than any other act.

The basic thing to success in this market is not the size of the money entering the market as it focus upon the Permanent market study, and understanding Mikhanykyate and wishes of the participants. This results in the continuous improvement of the way you work and organize your trading. This has never managed people in the currency market was adopted on the capital only.

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