Forex Currency Trading - FOREX
Forex is the only market in the world which is being deliberated on the clock.
24 consecutive hours. Speed in completing transactions, the cost of very few,
high liquidity. All these factors make the foreign exchange market (or foreign
exchange market), more markets for its clients. And the foreign exchange market
this can only be likened to trading markets, where the shape, as there is no
exchange here in the traditional sense of the word is known. It is composed of a
huge global network linking the simply enormous number of currency traders in
the world.
Here are circulation among hundreds of banks over the phone or via the Internet.
The major currencies traded are: the American dollar, euro, pound sterling,
Japanese yen, Swiss franc, in addition to all the currencies of the world.
How do Forex Trading:
In this market you can buy or sell currencies. The goal is to reap a profit from
the value of your contract. The implementation of the debate in the currency
market is easy: a mechanical trading are the same as in other markets, making
the transition to the currency market easy.
The five largest centers where trading between banks, representing two-thirds of
the volume of global exchanges: London, New York, Zurich, Frankfurt and Tokyo.
Who are the players on this arena?
1 global banks.
It is no secret to anyone that the banks are the largest and most important
players in the arena of global trade currencies. They are conducting thousands
of transactions daily around the clock, they exchange among themselves, or with
a broker Aoualemsttmaren ordinary, 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 their governments,
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, or retirement funds, or insurance
companies, intervene in the market, according to the dictates of their
interests. Recall the most famous of these funds "Quantum", the Fund owned by
renowned investor George Soros, who wrote a history in this area and still is
one of the biggest investors who are able to extend influence the course of the
market.
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. For their work and see them blow
for this commission or the so-called Brokerage.
5 independent people.
These are ordinary people who make a huge daily turnover of currency to finance
their trips planned, or to secure access to their salaries, or at retirement,
etc..
Today, after the revolution that introduced the Internet on the operations of
global communications, and after successive collapses in the stock markets, and
under the influence of the atmosphere haze seen by the markets, bonds, global
treasury, there is growing little by little the role of independent dealers who
have modest amounts of money in buying and selling daily fast, "Dai Trader ".
Growing influence and grow in the foreign exchange market, so that many of them
are now profess this work, and spend their days in front of computers bought and
sold each according to his vision of the course of today's events
Trading around the clock.
As mentioned above, the work on the currency markets over the past 24 hours. In
calendar today, the most obvious, start first in the Far East, in New Zealand,
then moved to the role of Sydney in Australia, then to Tokyo, and to Honkkong,
Vsingaporp, then Moscow, Frankfurt, London, and finally New York, Floss Angeles.
Work begins foreign exchange dealer in western Europe, for example, in the
seventh and a half in the morning. In the eighth work in the draw. Is necessary
to devote half an hour every day to analyze market conditions, and study the
developments of the day both the substantive core, and technical art, can then
be viewed on the new daily newspapers, or the exchange of information and leaks
reaching the market, which would influence the course of the market. Thus, a
clear idea, a program today which must be applied and amended if needed to be
the work of the day.
Currency trader. من هو?
First of all let us know currency dealer journeyman "Die Trader." Bam, who
cares? What are the temptations that pulls people into the profession.
Profession? Yes, a profession like any other profession, perhaps the most
exciting at all, and most cause for commitment, credibility and the courage and
fortitude. From March of this trade without making it a profession, he is a risk
turning it into a game of roulette, which depends on luck, first and foremost,
only to disappoint more than it infects.
Journeyman in the trade in currencies is an employee of Bruker Corporation, or
bank, or any other financial institution, working in the stock market and sees
to the care of their interests. But we can add to this definition, another
definition provides another category of these merchants are working for their
own account and risk their own money in order to obtain certain profits as a
result of their trade.
These are the category that concern us in our conversation, what really drives
them to practice this profession?
Alteryder is the master of himself: live where he wants, work where he wants,
without the worries of superior and subordinate. Besides, and perhaps this is
the most important factor, this work provides is good at the possibility of
providing a huge profit in one day is not provided by any other work. The
condition that the course is available in the group with all the conditions that
lead to success this. Otherwise, the bitter taste of failure, God saved us from
it.
Perhaps what distinguishes the currency trading markets from other markets. Is
that they provide the possibility for a trader which will achieve profitable in
the market as the slope in the market high. In contrast to stock markets where
the profit is limited in the market high, and control the loss Palmtaaml in the
market low.
However, on the other hand have on the client which is committed to this market
without having to arms of what must of weapons of defense and attack; he must
know, that is taken into account that the potential here is very high that takes
him to the market all they have to come out defeated and helpless powerless.
While it appears that the opportunity for each trader with experience to be able
to gain 500 or 1000 dollars in one day and a capital of no more than the 1000
dollars. Yes this is true
Forex Trading positives for those with modest capital.
Characterized by the FX market feature missing from the stock markets being
characterized by a system that provides cranes for him, for example, moving a
large amount of up to 100.000 dollars a modest capital does not exceed the 1000
dollars.
Besides, the volume of daily foreign exchange market is higher than every
conceivable way in which total of 1.3 billion, and on some days than three
billion dollars.
For the five major currencies (U.S. dollar, euro, yen, Swiss franc, the pound
sterling.) There is at any moment supply and demand. I went to the seller and
char. Therefore I need not concern any of the dealers not being able to get out
of a deal, at a given moment.
As mentioned, a positive factor for an important distinction to deal in the
markets of cutting foreign currencies, Alaoho Amkanbp deals throughout the day,
24 hours, so that the trader to move at any moment, at night as in the day to
make a deal or the closure when he heard news is that the impact in the market
is in the interest of, or threat to their survival in it. It does not need to
wait for open markets in the next day so that each dealer may Bode novelty and
opportunity for those who missed the race in the fall the news.
We must mention another positive characteristic of this market is the lack of
so-called market in the stock market collapsed. This is because it is trading
these currencies on the basis of the husband so that every purchase of the
currency is a sale of the coin the other in the so-called husband .. and so it
chose trading euro dollars and saw that the dollar buys, thinking that the price
will improve it at the same time had sold the euro, and vice versa . This
applies to all the remaining couples formed from five major currencies that were
previously mentioned
Add to all that the case of ease of communication in this market for a deal or
closure and through various means such as telephone or Internet.
Spouses:
Currency called in pairs, such as the EUR / USD or USD / JPY. The first known
currency currency basis. Pena called the second interview, currency or the
currency of the label. The base currency is the basis of buying and selling. For
example, if you buy EUR / USD has bought euros and sell dollars in the same
time. May do so in the expectation that the rising price of the euro against the
dollar.
EUR / USD
In this example Euro is the base currency in the sale and purchase.
That you expect the U.S. economy will continue to weaken, which would hurt the
U.S. dollar, not the implementation of the procurement contract EUR / USD. Which
means you bought euros expected that the price will rise against the dollar.
That you expect the U.S. economy is strong and the euro will weaken against the
U.S. dollar is the implementation of the contract of sale EUR / USD. Which means
you are expected to sell euros against the dollar, its price will fall.
USD / JPY
In this example the U.S. dollar is the base currency in the sale and purchase.
That you expect the Japanese government would weaken the yen to help exports,
not the implementation of the contract for the purchase USD / JPY. Which means
you bought dollars expecting that the price will rise against the yen. That you
expect that Japanese investors would withdraw money from the U.S. market and
repatriating funds back to Japan the implementation of the contract of sale USD
/ JPY. Which means you sell dollars and expected price will decline against the
yen.
GBP / USD
In this example the GBP is the base currency in the sale and purchase.
That you expect the British economy will continue to grow in Europe, not the
implementation of the procurement contract GBP / USD. Which means you bought
pounds, expecting that the price will rise against the dollar. That you expect
the British will begin to deal in euros, which would reduce the value of the
pound, the implementation of the contract of sale GBP / USD. Which means that
you sell pounds, expecting that its price will fall against the dollar.
USD / CHF
In this example the U.S. dollar is the base currency in the sale and purchase.
That you expect that the price of CHF than its true value, not the
implementation of the contract for the purchase USD / CHF. Which means you
bought dollars expecting that the price will rise against the franc. That you
expect the dollar will continue to decline due to weak U.S. market, the
implementation of the contract of sale USD / CHF. Which means you are expected
to sell dollars against the franc price will fall.
Buying and selling:
First, traders should determine if it wishes to sell or purchase. If you want to
short order - where winning at low trading price - he must do the sale. And vice
versa for traders wishing to buy - where profit will be when the price of
trading.
Margin:
Margin deposit is not a down payment to purchase a loan, as he sees a lot in the
stock market. But margin is the amount of the guarantee against loss in trading.
Margin Trader can to move the value much larger than the actual value of self *.
In lower case your money in the account to a minimum level of margin
requirements, the Office of FXCM close some or all of the contracts, so as to
avoid the expense of lower negative through the shops in the market is moving
quickly.
* Without proper risk management, this high degree of margin may lead to the
loss or high profits
Here is an example in case the margin on your 1%
Because the trader to open a decade of the EUR / USD, the user has a margin is $
1000. Usable Margin is the funds available to open the account of new contracts
or replace the loss. If the decreased value of the contract margin for the user
because of the loss, the contract closes automatically. Which means that
merchants can not lose more than deposited in his account at all.
How to get started:
Without the commitment or cost, you can open an account by default. Default
account / trial by all the properties of the normal account, which the market
prices, analysis and possible implementation of the deliberations alive. Demo
account, you can learn about the currency market and test your abilities without
any risk.
How to trade your account demo: used this time to a plan of action
1. Choose the right currency pair. According to your study of risk, any currency
is best suited for your trading style. Some may be quick to move and the other
slower decided any pair of currencies is best suited to your strategy and your
schedule.
2. Select the period in which you want to leave the contract open it. On the
same day or hours to several days.
3. Before opening a fact that the idea of your intention to close it, and select
the stop and the Limits lineage.
4. Select the extent of the loss that can be accepted and the extent of the
expected profit.
5. Continued significant news and economic analysis that may affect your trading
