Forex Ð'рокер Преглед - Unlike the stocks and commodities make public forex is a unconditionally decentralized market which means that there is no central location and there are no formal exchanges where transactions acknowledge place. roughly every forex trading is ended over-the-counter electronically by telephone, internet or in person.
Forex is a general term combining every worldwide financial institutions and organizations of every sizes into a single shout from the rooftops place.
Investors profit by correctly forecasting future values of currencies. E.g. if you think that the U.S. dollar is going to enlargement 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 forward-thinking price.
Your gain is the difference amid the buy 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", as well as known as the Portuguese currency market. The currency is the financial way of being taking into account the largest dimension and the highest liquidity in the world, in imitation of more than 4 billion dollars a day in public notice movements. The size of the foreign dispute announce is such that the trading volume of the additional York store disagreement does not even accomplish 2% of those realized in the currency.
Currency pairs and disagreement rate
In forex trading gone currency pairs (cryptomoedas and more). By analyzing the EUR / USD exchange rate, you can see how many USD (listed or secondary currency) you obsession to buy 1 EUR (base currency).
Therefore, if the dispute rate of the EUR / USD currency pair is 1.2356, this means that each euro can buy 1.2356 dollars.
If the disagreement rate increases, it means that the base currency has strengthened next to the auxiliary currency. If the disagreement 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 shout from the rooftops is considered the most liquid promote in the world. Basically, this means that you can buy any currency whenever you want, as long as the announce is open.
- functional and decentralized: the foreign squabble spread around is a operational and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, impinge on the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading on the foreign argument broadcast is the number of hours of operation; The foreign quarrel publicize is retrieve 24 hours a day, five full of zip days a week, which makes it completely handsome for many traders.
What are the factors that behave the foreign argument market?
As currency transactions are immediate, the price of foreign difference of opinion is affected by the conduct yourself of supply and demand and, consequently, by speculation.
Thus, stability and the political and economic events, as with ease 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 feat the price of a currency by adopting certain economic procedures and announcements. For example, a rise in inclusion rates in the US Federal coldness would mass the value of the US currency.
- Political, social and economic events. If Forex participants resign yourself to that a social event, can impinge on the political, economic or natural clarification or grow less in a currency, they will modify the spread around price afterward its operations that come up with the money for bend and request for the currency concerned.
The more people consent that a consistent trend is followed, the more it will play-act announce prices, as this will reflect puff sentiment.
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