Forex Ð'рокер Преглед - Unlike the stocks and commodities announce forex is a very decentralized shout out which means that there is no central location and there are no formal exchanges where transactions agree to place. not quite all forex trading is the end over-the-counter electronically by telephone, internet or in person.
Forex is a general term combining all worldwide financial institutions and organizations of every sizes into a single spread around place.
Investors profit by correctly forecasting far ahead values of currencies. E.g. if you think that the U.S. dollar is going to enlargement in value against the Canadian dollar you can purchase the USDCAD currency pair. If you are right and the value of the U.S. dollar increases you can sell the pair for a future price.
Your gain is the difference amongst the purchase price and the sale price multiplied by the number of lots traded - trade size - or vice versa if you sell the pair short.
What is Forex?
Forex is the acronym for "currency market", along with known as the Portuguese currency market. The currency is the financial flavor past the largest dimension and the highest liquidity in the world, afterward more than 4 billion dollars a morning in public notice movements. The size of the foreign row make known is such that the trading volume of the new York heap disagreement does not even accomplish 2% of those realized in the currency.
Currency pairs and squabble rate
In forex trading similar to currency pairs (cryptomoedas and more). By analyzing the EUR / USD argument rate, you can look how many USD (listed or auxiliary currency) you need to purchase 1 EUR (base currency).
Therefore, if the quarrel rate of the EUR / USD currency pair is 1.2356, this means that each euro can purchase 1.2356 dollars.
If the disagreement rate increases, it means that the base currency has strengthened against the subsidiary currency. If the row rate eventually decreases, it means the opposite.
The characteristics of the Forex or Forex market
- Liquidity: Because of the $ 5 billion that circulates daily, the foreign dispute puff is considered the most liquid shout from the rooftops in the world. Basically, this means that you can buy any currency whenever you want, as long as the push is open.
- operational and decentralized: the foreign exchange puff is a practicing and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, disturb the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading upon the foreign argument present is the number of hours of operation; The foreign exchange spread around is door 24 hours a day, five lively days a week, which makes it agreed attractive for many traders.
What are the factors that performance the foreign exchange market?
As currency transactions are immediate, the price of foreign disagreement is affected by the play a role of supply and request and, consequently, by speculation.
Thus, stability and the embassy and economic events, as competently as the monetary policy of the countries, are elements that portray the contributions.
- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly con the price of a currency by adopting definite economic trial and announcements. For example, a rise in incorporation rates in the US Federal detachment would accumulation the value of the US currency.
- Political, social and economic events. If Forex participants agree to that a social event, can involve the political, economic or natural clarification or fall in a currency, they will correct the broadcast price next its operations that offer regulate and request for the currency concerned.
The more people take that a consistent trend is followed, the more it will feat puff prices, as this will reflect publicize sentiment.
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