What is Forex?

Currency Trading in Forex - FOREX

Forex is the only market in the world in which it is trading around the clock. 24 consecutive hours . Speed ​​in completing the transaction , the cost of a very few , highly liquid . All of these factors make the foreign exchange market ( or the foreign exchange market ) , more markets for its clients . The forex market this can not be likened markets traded stocks in terms of shape , as there is no exchange here is known in the traditional sense of the word. It is composed of a global network linking tremendous simply a huge number of currency traders in the world.

Here are traded among hundreds of banks over the phone or via the Internet . The major currencies that are traded are: the U.S. dollar , euro , pound sterling , Japanese yen , Swiss franc , as well as all the currencies of the world.

The five largest centers where trading between banks, which represent two-thirds the size of the global exchange are: London , New York , Zurich , Frankfurt and Tokyo.

Who are the players in this arena ?

1 global banks .

It is no secret to anyone that the banks are the biggest and most important players in the arena of global trade currencies . They are conducting thousands of transactions daily around the clock , they exchange between each other, or with Albrookr Aoualemsttmaren ordinary , through their Permanent Representatives in this area . It is obvious also that the greatest influence in moving the market and identify and confined to his part in the hands of the top global banks , as the daily transactions amounting to billions of dollars .

2 central banks .

Central banks are transactions in this market commissioned by the government , a move most often to influence the course of the direction taken by their own currencies , according to the interest that is consistent with the financial policies , and therefore protect its economic interests .

3 investment funds.

Is mostly due to the institutional investors or pension funds , or insurance companies , to intervene in the market , according to the dictates of their interests. Months these funds recall " Quantum ", a fund which is owned by renowned investor George Soros , who wrote a history in this area and is still considered one of the largest direct investors who are able to influence the course of the market.

4 Currency Trading clients .

Important of these is limited to the permanent link between buyers and sellers . In other words, they move from the point of intermediaries between different banks , on the other hand between banks and ordinary investors . In return for their work that you see them counted commission or the so-called brokerage .

5 people independents .

These are ordinary people who conduct daily operations of a huge switch between currencies to finance their trips planned , or to secure access to their salary , or retirement , etc. .

Today, in the wake of the revolution introduced by the online operations of global communications , and after successive collapses in the stock markets , and under the influence of the atmosphere foggy witnessed by the markets, Treasury bonds global , growing little by little the role of independent dealers who have modest amounts of money in buying and selling everyday food " Dai Trader . " Growing in influence and numbers are growing in the foreign exchange market , so that many of them have come to this profession work , and spend their days in front of computers buying and selling each according to his vision of the course of events of the day.

Exchanges around the clock.

As mentioned above , extends the work of the currency markets over the past 24 hours. In the calendar of today's most visible , work begins first in the Far East , in New Zealand , then turns round to Sydney in Australia , and then to Tokyo , and from there to Honkkong , Vsingaforh , then Moscow , Frankfurt , London , and finally New York , flus Angeles.

Starting a business dealer of foreign currencies in Western Europe , for example , in the seventh and thirty in the morning . In the eighth be working in aspects . It is necessary to allocate half an hour early every day to analyze market conditions , and the study of developments in the day of both the substantive core, technical art , which are subsequently found new in the daily newspapers , or the exchange of information and leaks received by the market and that will influence the course of the markets . And so are a clear idea , which arises today's program , which must be applied and adjusted to the need arises to be the work of the day.

Currency trader . Who is he?

Above all let us know currency dealer Almiom " Dai Trader ." Bam cares? What are the temptations that pulls people into the profession.

Profession? Yes profession like other professions , but perhaps the most exciting ever , and most cause for commitment , credibility and courage and fortitude . And March this trade without making it the profession , then it runs the risk of turning it into a game Roulette , which depends on luck , first and foremost , if it affects more than disappoint .

Almiom in Forex Trading is a company employee Brooker , or a bank, or any other financial institution , operates in the stock market and sees to the care of their interests. But we can add to this definition , another definition provides another class of traders of these self-employed personal and risking 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 drives them to actually practice this profession ?

Turaedr is the master himself : live where he pleases , work where he pleases , without the worries of superior and subordinate . Besides, this is perhaps the most important factor , this work provides the possibility for those who were good at providing a huge profit in a single day is not provided by any other work. The condition that the course is available in every worker conditions that lead to the success of this . Otherwise, the bitter taste of failure , God saved us from it.

Perhaps what distinguishes the currency trading markets for other markets . Is that they provide the possibility for a trader to make a profit in the market as the slope in the market high . As opposed to the stock markets where the profit is limited in the market high , and loss control Palmtaaml in the market is low.

But, on the other hand should a trader who is committed to this market without having to arms with the required weapons of defense and attack ; he must be known , and that the bracing that the potential here is very high that takes him to the market all they have come out of it subdued not about him no strength . While it appears that the opportunity for each trader with experience that allow him to profit of 500 or 1,000 dollars in a single day and the capital does not exceed $ 1000 only . Yes , this is true .

Definition currencies as spouses

Forex Trading positives for those with modest capital .

Forex Trading market is characterized by feature missing from stock markets being characterized system levers that provide to the customer , for example, to move a huge amount could be up to $ 100,000 a modest capital of no more than 1,000 dollars.

Besides, the daily volume of transactions in the foreign exchange market that surpasses all conceived as a general of the U.S. $ 1.3 billion , and more than three days in some of the billions of dollars .

For the five major currencies ( U.S. dollar , euro , yen , Swiss franc , the pound sterling . ) There are at any moment supply and demand . I meant vendor and char . So I do not see any need for concern by dealers not being able to get out of a deal , at a given moment .

As noted above , the positive factor important characteristic of dealing in markets cutting foreign currencies , Alaoho Amkanbh dealmaking throughout the day, a full 24 hours , so that the trader to move at any moment , in the night as in the day to make a deal or the closure when he heard news is that the impact the market is in its favor , or which threatens its survival . It does not require waiting for the opening exchanges in the next day so that each trader has Onbi novelty and missed the opportunity of the fall was a pioneer in the news.

It must be stated another positive factor of this market is characterized by a lack of so-called market in the stock market collapsed . This is because it is trading these currencies on the basis of the pair so that every purchase of a currency is considered a sale of the coin the other in what is called the pair .. Thus it chose to trade in Euro dollars and saw that the dollar buys , thinking that the price will improve it at the same time have sold the euro and the opposite is also true . This applies to all the remaining couples formed of five major currencies previously mentioned

So we add to each case ease of communication in this market for a bargain or the closure and that by various means such as telephone or internet.