Forex

This strange term, which may pass by sometimes and wonder what is this ?

May answer your questions on this article!!

I can simply tell you that the word Forex is the abbreviation of the term expression of foreign Foreign Exchange

Which means short of speculation in the foreign exchange market or in the international exchange of currencies!!

Let me clear to you, the beginning of what the stock market?

We are daily buying and selling many different goods, which are displayed in shops, markets and venues, such as food, clothes, cars, household appliances .... And others.

We find generally that each is distinguished by a special commodity market, where he will meet with those interested in the product to place, including sales and purchases on the basis of the price determined by the forces of supply and demand.

The stocks, bonds and currencies is one of those commodities are exchanged between individuals, institutions and countries on a daily basis and in huge quantities.

Called the markets in which they are trading (buying and selling) that kind of commodity bourses . And stock exchanges exist in all countries of the world and each of its specialization and exchange, and the states to administer such exchanges and the organization of work.

Currency Exchange!!

Like other stock exchanges where the sale and purchase of currency for the payment of the currency of the State of another State.

For example, where to buy the U.S. dollar to pay the single European currency (euro), or vice versa of any payment of the purchase of the euro the U.S. dollar an 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.

Or the purchase of U.S. dollar payment in return for the Swiss franc, or vice versa.

Or purchase of any currency, and paid the price with another currency.

Thus, it is displayed in the form of currency pairs to be sold one of those couples to buy the other spouse, or vice versa

The minor differences that arise between the exchange rates due to the changing forces of supply and demand during the time that can be used to make a profit from this market.

Imagine you have to buy one Euro now and paid the corresponding (1.2700) dollars, shortly after the change to euro exchange rate (1.2800) and I once again selling this amount.

Can now account for your earnings (1.2800 - 1.2700 = 0.0010) it is clear that you earned one cent of that process simple.

But what if you have to purchase (10000) Euro, you can profit in the deal (100) dollars in one go.

If I need large sums of money to take advantage of this market?

No.. Will not require large amounts to achieve huge profits in this market.In fact, you will not depend on money allocated for investment only!! This market as it offers a unique system allows you to trade large amounts of money for the payment of small sums only.

This is called the system marginal system!

You can trade this system in amounts of up to 200 which is double the amount to invest, and more. And keep the profits for yourself full.

As well as the losses!! However, in all cases, your losses will not exceed the amount that you invest the small beginning. Meaning you will not be able to continue in the loss if the capital losses in excess of the initial owner, will not be calling for the payment of any amounts over and above the amount you initially invest.

The volume of operations in the Forex market in a steady growth. Is associated with the great development of world trade and the lifting of the currencies in many countries. The (80%) of all transactions is a speculation in the currency market aimed at obtaining profits from price differences. This speculation and attract many participants from both financial organizations or individual investors.

But how are the sales and purchase these?

The Forex market is not market the literal sense of the word, since it has no center and does not have a place where trading in a particular exercise. The practice of trading through the Internet and communication Allfinu computer at one time among the hundreds of banks around the world. Hundreds of millions of currency bought and sold every few seconds.

By specialized companies and licensed to receive the sale and purchase orders from investors for the implementation of them.

Called corporate companies mediation (Brokerage firms) and in any case, it does not you can carry out your orders without dealing directly with one of these companies.

It is in general the following sequence

* Is selected by a brokerage firm and fit your Imkanatk to contract with

* You open an account with that company are registered and your personal information, and wishes to deposit the amount of your investment.

* Follow up the movement of prices through a specialized program on your computer and give orders to the sale and purchase of the brokerage company through the trading platform.

* The company is the implementation of your orders and any profits or losses will be added or withdrawn from your account.

* You can of course withdraw your money from the company or add them at any time.

Communication between you and the brokerage company is through a special program called a work station (Platform), is access to this program through a user name and password when you are opening an account the company.

You can program up prices and give orders to sales, procurement and full control of your account. Of course, all these processes during the contact with your computer will be the Internet.

You will find that the process of communication and interaction between you and the company is located in the other half of the globe is very easy and you'll find that most companies offer strong support to help investors and bring them to the nearest distance as if the company is located in the next room for you.

So are things in general, but you should know that before trading real money You must have sufficient expertise to manage your account properly because it is simply that you can easily lose all your investment if you were not experienced enough.

How do I increase my experience and my knowledge of this market?

That one question ... Will go to any direction of the price?

We have made a lot of scientists, professors, developers, and a huge effort and time spent in the study to provide us with research and numerous studies on the financial markets. In order to answer this question.

The right to predict the direction of the price depended on the deep study of the market.

We usually find three forms of market analysis: analysis, news and technical analysis, the analysis myself. It would be a combination of careful and proper analysis of these three is the guarantee for the correct prediction in the Forex market.

News analysis includes the study of economic and political factors that may affect the currency market. For example, reports of the Central Reserve Bank of policies the American economy and transactions, and statements of important statesmen and other important events.

The objective of the analysis is the analysis of key factors and their impact on the dynamics of prices in the Forex market. A trader in the Forex market is always familiar with the current situation worldwide.

Technical analysis is an analysis of the market situation based on previous price changes.Used in this analysis charts, which reflect price changes for a certain period of time. And technical analysis, we can also understand the general market situation at the present time, several indicators can predict price changes in the near future.

The technical analysis is based on the fact that the price takes into account all the factors that could affect the market - economic, political, psychological and other factors - are all rated in mind when determining prices. If the market was really the result of his market would consist of the decisions of a large number of participants taken after analysis of the enormous amount of information when doing transactions. The behavior of prices is the result of these decisions, and monitor you have input all the information in this market.

The shops need to know the fact is that the direction of the movement of prices. Technical analysis and give a huge amount of tools that enable us to extract useful predictions from graphs of the prices.

Psychoanalysis is to analyze the behavior of traders in the market and their psychological state and their expectations, hopes and Takovahm.

This type of analysis is very important because the very high proportion of health We must not forget that behind the computer stations that provide price expectations on the people and their actions depend in the end exchange rates.

Might find it interesting at the outset, fantastic, and may find hard and tired and in fact, is interesting and impressive, and both hard and tired. The realization of large profits is not easy, easy, but in any case is not difficult or complicated.

You can start from now to learn and gain experience and remember that you did not start it will not end ....

References used in writing this article :-

Forex books for beginners