Saturday, November 20, 2010

Beginning of the road in the Forex market for beginners

Beginning of the road in the Forex market for beginners


In order to understand the meaning of Forex you should understand the meaning of the Stock
Exchange first,

Bourse is a commercial market has a lot of traffickers, the most important of these traders are investors, banks and investment funds, brokerage firms and speculators, and there are many, many things that are traded in accordance with the type of stock, there is a stock exchange and bonds (which is the exchange of stocks and bonds) , and commodity exchanges (such as wheat and oil), and the stock exchange in which they are buying and selling major currencies

So is Forex: Foreign Currency Trading market through the purchase of one currency and selling of foreign currency against which the other is an abbreviation of the word ForeignExchange (which means the exchange of foreign currencies)

Example is the purchase of U.S. dollar to pay the single European currency (euro), or vice versa any purchase to pay the U.S. dollar Euro interview.

Or buy the U.S. dollar to pay the Japanese yen, or vice versa.
Or buy the U.S. dollar to pay the pound sterling, or vice versa.

And obtained a profit of exploiting the differences minor between the price of currencies, which spreads a simple majority of the time, but it can turn into huge profits when they are buying and selling large amounts of money, using the leverage provided by the brokerage firms, which up to 1: 400 (will be explained later)

The Forex market is the largest financial market in the world with an average daily circulation of more than 2 trillion (2000 billion U.S. dollars)

In contrast to other financial markets, the foreign exchange market has no physical location or central exchange. The Forex market operates 24 hours a day through an electronic network of banks, institutions and individual traders. Forex trading begins each day in Sydney, then moves to Tokyo, followed by London and then New York

Who are the participants in this market?

1 - international banks: The banks, the largest and most important players in the arena of global currency trading. They make thousands of transactions daily around the clock, they exchange among themselves, or with a broker or ordinary investors, through their Permanent Representatives in this area. It is no secret that the greatest influence in moving the market and to identify and exclusively in the hands of top global banks, as the daily transactions of billions of dollars.

2 - Central Banks: Central banks are transactions in this market commissioned by the government, a move often to influence the course of the direction taken by their own currencies, according to the interest that is consistent with monetary policy, and therefore protect its economic interests.

3 - Investment Funds: It was due mostly to institutional investors, Aosnadik retirement, or insurance companies, interfere in the market, according to the dictates of their interests.

4 - Forex Trading clients: These are the important permanent link between buyers and sellers. In other words, they move on the intermediaries between the various banks, on the other hand between the banks and private investors. In return for their work that you see them blow for a commission.

5 - Persons Independent: We These are ordinary people who make huge Iumiaamilit switch between currencies to finance their trips planned, or to secure access to their salaries, or at retirement, etc..

Today, after the revolution made by the online operations of global communications, and after successive collapses in the stock markets, there is growing little by little the role of independent dealers who have modest amounts of money in buying and selling daily fast (speculators) growing influence and grow in the foreign exchange market,

Is profitable when it changes prices of these currencies, you buy the euro, such as August 1 dollar increased the price and became 1 dollar and fifteen cents to get the difference the gain, and this will require capital of a relatively large, because the brokerage companies provide you with leverage of up to 100 times your capital or 400 times your capital


 المصدر : http://100fm6.com/vb/showthread.php?t=168560 - 100fm6.com

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