What is forex trading 2

The first thing you should know about Forex is that there is always a risk of loss no matter how small or large, but this remains a possibility therefore you should not venture all the capital at all.

The contrary, you should before you begin the calculations to work with FX to see what is the appropriate amount, which is to operate and in the case, God forbid, a total loss of this amount will not suffer from financial distress

Abstract speak to invest part of the money only and not all

- Forex is the largest and fastest growing market is currently estimated as the daily movement in which more than 2.5 trillion dollars


- Participate in this market, banks and organizations and institutions and investors and individuals from all over the world


- You can consider that Forex is a market for trading commodities where you go to this market to sell a particular product or buy another product, but there is a difference between this type of markets, and FX, and it is interested in Forex trading funds more than anything else (with the knowledge that Forex trading also includes gold, silver, oil and some other products such but his biggest one is money) and the second difference is that you do not actually buying or selling currencies but you are trading in the movement of these funds


- You can trade Forex from the head of the largest owner of Ali by the so-called Leveraged For example, when we say you are working leverage of 1:100 means that you can trade with a capital larger than the head of the actual owner of 100 times (ie, if the head of the actual owner of the 100 $ you can trade with a capital of $ 10,000).

- A lot of people think that Forex trading is that you buy a particular currency at a specified price and wait to be above the price of the currency sell at a higher price later and check this gain. However, if the exchange rate came down Only thus be a loss of

This is not true at all, as one of the biggest advantages of the Forex market that you can easily make a profit regardless of the currency movement, either up or down, but only important is that the expected currency movement properly

- Influenced by the movement of currencies in the FX and violin by several factors mentioned you can take advantage of these fluctuations in the movement, whether up or down but, as mentioned previously, the FX work of several kinds, not all members of traders like us, but there are global institutions and international banks are also major in the capital market but its not speculation like us, but rather its goal is to maintain currency stability, and they are what they claim Laketan Forex

Where you always intervene when necessary. For example, they do not want to go down the euro to $ 1.200 for Hwkp they are always watching the market and when the price is closer to euro dollars of this figure so as not to interfere with the price down about it

But in general, the proportion of speculators 95% while the percentage of 5% and whales as we aim only to maintain the stability of the currency rates for political purposes

- Forex Trading is through the platforms (such as FXOPEN - INSTAFOREX) where you can trade only through these platforms and choose the right platform for you is something very important and is one of the most important steps and this part will be explained later, God willing,

- Forex trading is through the pairs of currencies and can not be the currency of its own. Take from the husband Eurodollar example to us (EUR / USD) and we will explain some of the particles by

1) You must buy the currency against other currencies and you can sell and purchase the same currency. This means for example, by Alzerej you buy the euro against the U.S. dollar selling, and note that the euro is the currency that will buy them because he came first in the order of the husband, but if the husband in this way (USD / EUR) you want to buy Ataw against the euro

2) when you see that the exchange rate and not a particular pair Eurodollar like this EUR / USD = 1.2000, this means that even able to buy one euro must be paid $ 1.2 (dollars and twenty cents)

3) an example of the profit from the volatility in this pair:

First: The Rise of the husband (ie you do after you study and found that the pair on the way to the rise)

Let's say you bought 1000 euro against the dollar and the exchange rate EUR / USD = 1.2000 this, you need to pay $ 1,200 (one thousand and two hundred dollars)

After studying the movement of husband and found it on the way to rise to 1.4 so I did sell the 1000 euros and Stabiehm $ 1.400 b

No you are in this board you profit $ 200

Second: landing a husband (no you after you study and found that the pair on the way down)

When the movement in the direction you are landing you sell first and then purchase (described later) so I did sell the 1000 euros to $ 1,200 (the price of any pair has been EUR / USD = 1.2000) and through your studies I learned that the husband's way down to the EUR / USD = 1.0000 I took you to purchase the 1000 euros again but this time at $ 1000 only (
Thousand dollars) while you've sold $ 1.200 b

No you have won $ 200 as well through fall and spouse proves that the FX does not depend only on prices but you can have earned during the landing and also

* In the downward movement we sell first and then buy. How?

A simple example:

Let's say you went to your friend and who owns a store that sells mobile phones, and I told him to appoint you to study the type of phones and I knew that during the coming days, the price will drop and you want it to Islvk him far that you return him for later as it is

Already given you and your friend's phone, and you went and sold him to $ 1,200 because you know that you Ststraeh later at a lower price and return the phone to a friend once again, as promised

Indeed, after two days and found that your expectations were appropriate and that the price dropped to $ 1000

In fact I bought the phone again, but with $ 1000 and echoed to your friend once again, as promised

So at first you sold him to $ 1200 and you bought it again on $ 1000

So net profit is $ 200

This is what happens in the Forex as a friend is a company that you work with and as long as the balance where you can allow it to be so Tzlvk

- Many learned from us asking what the brokerage firm that works with all of these trades

The simple answer is, and the spread is the difference between the purchase price and the current selling price for a couple of specific company and thereby ensuring that whatever the market and in any particular pair to be profitable

For example, found that the euro-dollar pair in this way

EUR / USD = 1.2000/1.1995

The first number is the purchase and sale and the second is meant that if you buy and you sell without any change in the exchange rate movement will be the loser, and to ensure that the company that in any case is this difference will be the winner on points

- There are two types of couples

And are the majors and the dollar, which is a party with both the yen and the euro, sterling and Swiss franc

USD - JPY - GPB - CHF - EUR

Any pair Tignes does not include the dollar with the currencies become sub -

- Any husband who does not include the dollar is also Hsapth through and this is an example

Suppose you want to know the price hauled Alastrini - yen (GPB / JPN) is the work of the following:

GPB / USD = 1.74

USD / JPY = 112.29

So

GPB / JPN = 1.74 * 112.29 = 195.38


- To conduct any operation in the Forex, whether buying or selling must first be deposited certain amount in the company and is used to determine the so-called marginal or MARGIN this margin and the company to ensure that even in case of loss will be able to afford


- The most important factors influencing the market are:

- Power supply and demand for a certain pair had Tathber significant in determining the next movement

- Some things political states such as government policy and competition between them and the other states and the size of its labor market and if these signs are positive, increase the desire of investors to invest in the state, raising the price of its economy and its currency, the highest

- Have issued a statement as well annoying of the U.S. government, for example. Then you will find that the price of the dollar fell abnormally, while exactly the opposite. If a positive Pena of the U.S. government will find that the price of the dollar rebounded again.