Skip to main content

Introduction to Forex


market FXThe Forex market, a term created by the contraction of Foreign Exchange, said often FX, is the largest, liquid and transparent financial market in the world. The average turnover exceeds 2 thousand billion dollars daily, while all U.S. stock markets does not reach the 3% of the total traded in the Forex. Unlike other financial markets by most of which can benefit only when they are rising in a Forex trader can open simultaneously a long position (purchase) on a currency and short (selling) on another, which means that unlike other financial markets, the Forex offers opportunities to gain much more numerous.
Basic ConceptsThe operation of Foreign Exchange is the simultaneous exchange of one currency into another. Since currencies are traded in pairs to win on a given exchange rate should buy the currency expected to rise and sell the other. For example, if you believe the euro (EUR) increase against the dollar (USD) will buy EUR / USD, in other words buy euros and sell dollars. Conversely, if you believe the euro against the dollar arretrerà then sell EUR / USD ie sell euros and buy dollars. It ‘clear that there is no need to wait for the market is rising to earn, any time a currency grows over another. The Forex then produces continuous investment opportunities.
Those who work in Forex?We can define two categories of traders: hedgers and speculators. Among the first we have some government agencies, companies import / export and investors usually exposed to a “foreign exchange risk.” A negative trend between their currency compared to foreign currency counterparty in business (in the exchange of goods and services) can damage considerably. These represent the core of Fx trading although constitute only 5% of the market today.Then we have the speculators, a group formed by banks, funds, FOREX or private companies that create an artificial currency exposure to benefit from changes or movements in price.
Pairs currenciesEach currency is shown as a symbol of 3 letters. The currencies are traded in pairs and displayed as such. The first currency shown is the one “base” or “guide” or “primary currency”, the second refers to the “secondary currency.” The “pair of currencies” is followed by a number, usually composed of five digits. The number represents the ratio of one currency against another, and can be read as “the amount of the second currency necessary to have a main unit of currency.”
Bid / Ask or Buy / SellThe currency pair is always followed by two numbers, the first has a value lower than the second. The first figure is known as “Bid” or “Sell” (selling price) while the second is known as “Ask”, “Offer” or “Buy” (purchase price). The number smallest Bid (Sell) represents the price at which you can sell the currency to buy the main and secondary currency. The second price, Ask (BUY) is the price they buy the main currency and sell the currency secondary.


Comments

Popular posts from this blog

How to find ideas to post new article in your blog

How to find ideas to post new article in your blog    阅读原文»   It is true that sometimes being a blogger may face situations where I would personally like to call it your brain juices got dried up as you have pretty much ran out of topic to blog and you are in crisis as your readers are anxiously waiting for your new posts but you are unable to give in. That’s when you will probably come with excuses like I just posted last week although that post was more directly towards the newbies who stop themselves from making money but it’s still pretty much the same even though you consider yourself not a newbie. The fact is that ideas are everywhere and I mean everywhere if you know where to find it and know how to leverage it. You may be surprised that sometimes these ideas are just right in front of you but you are not observant enough to convert these ideas and turn it into your blog post. Today I will share some tips on where to get these ideas and...

Lindsay Lohan Breakup Confirmed by Lohan, Locksmith, Police [Gossip Roundup]

Farewell, last season's Suri Cruise fashions. Goodbye, Amy Winehouse's bathing suit. Adieu, humanoid version of Lauren Conrad. And so long, LiLo and SamRon's fairytale romance. Lindsay Lohan confirmed her split with Samantha Ronson and insisted the decision was part of a very healthy and mature effort to " focus on myself ." Upon hearing this, Ronson changed her locks and discussed a restraining order with police, so confident was she in Lohan's ability to turn productively inward. Lohan promptly had a run-in with the police . Who would have imagined such a messy breakup for this model relationship? Courtney Love's lawyer, on her client's drug-fueled plunge into broke-ness: ""Courtney noticed the money was gone when there wasn't any left." Deadpan gallows humor: the only possible response to having Courtney Love as a client. (Besides asking for a hefty retainer.) [ P6 ] Before Lauren Conrad's contract expired in March, MTV...

New Theme: Chteau

New Theme: Chteau    阅读原文» Today we are introducing an elegantly designed and typographically pleasing theme, Chteau . The Chteau Theme Designed by Ignacio Ricci , Chteau has been crafted with close attention to detail and typography. Its beautiful, minimalist look allows you to make your content the focal point of your blog. Aside from a brilliant design, this theme offers many cool features that help you to personalize your blog. There are two color schemes, three layout options, custom accent color, Custom Header Image , Custom Background, six widget areas, and three post formats ― Aside, Gallery and Image. It's loaded with options that make the theme flexible enough to fit a variety of sites. Read all about Chteau's features on the Theme Showcase . Announcing Support for OAuth2 and New Developer Resources    阅读原文» We love developers and the applications they build to help extend WordPress.com in new and meaningful ways. To continue provid...