外汇ç»çºªå•†è¯„论 - Unlike the stocks and commodities shout from the rooftops forex is a certainly decentralized puff which means that there is no central location and there are no formal exchanges where transactions put up with place. nearly all forex trading is done over-the-counter electronically by telephone, internet or in person.
Forex is a general term combining all worldwide financial institutions and organizations of all sizes into a single present place.
Investors gain by correctly forecasting highly developed values of currencies. E.g. if you think that the U.S. dollar is going to accrual in value next to 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 far along price.
Your gain is the difference with 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", afterward known as the Portuguese currency market. The currency is the financial broadcast gone the largest dimension and the highest liquidity in the world, considering more than 4 billion dollars a morning in advertisement movements. The size of the foreign argument publicize is such that the trading volume of the new York hoard dispute does not even reach 2% of those realized in the currency.
Currency pairs and exchange rate
In forex trading as soon as currency pairs (cryptomoedas and more). By analyzing the EUR / USD disagreement rate, you can look how many USD (listed or supplementary currency) you compulsion to buy 1 EUR (base currency).
Therefore, if the squabble rate of the EUR / USD currency pair is 1.2356, this means that each euro can purchase 1.2356 dollars.
If the difference of opinion rate increases, it means that the base currency has strengthened against the supplementary 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 clash promote is considered the most liquid make public in the world. Basically, this means that you can purchase any currency whenever you want, as long as the spread around is open.
- keen and decentralized: the foreign dispute promote is a energetic and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, concern the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading on the foreign dispute present is the number of hours of operation; The foreign argument make known is admittance 24 hours a day, five in force days a week, which makes it agreed attractive for many traders.
What are the factors that put it on the foreign clash market?
As currency transactions are immediate, the price of foreign quarrel is affected by the operate of supply and demand and, consequently, by speculation.
Thus, stability and the political and economic events, as without difficulty as the monetary policy of the countries, are elements that picture the contributions.
- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly pretend the price of a currency by adopting sure economic trial and announcements. For example, a rise in interest rates in the US Federal reserve would enlargement the value of the US currency.
- Political, social and economic events. If Forex participants take that a social event, can disturb the political, economic or natural enlargement or grow less in a currency, they will correct the make public price in the manner of its operations that give fine-tune and demand for the currency concerned.
The more people acknowledge that a consistent trend is followed, the more it will feign market prices, as this will reflect publicize sentiment.
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