外汇ç»çºªå•†è¯„论 - Unlike the stocks and commodities make known forex is a enormously decentralized announce which means that there is no central location and there are no formal exchanges where transactions take place. nearly every forex trading is ended over-the-counter electronically by telephone, internet or in person.
Forex is a general term combining all worldwide financial institutions and organizations of all sizes into a single publicize place.
Investors gain by correctly forecasting vanguard values of currencies. E.g. if you think that the U.S. dollar is going to enlargement in value adjoining 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 higher price.
Your gain is the difference amongst the purchase 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", along with known as the Portuguese currency market. The currency is the financial atmosphere subsequent to the largest dimension and the highest liquidity in the world, bearing in mind more than 4 billion dollars a daylight in advertisement movements. The size of the foreign disagreement market is such that the trading volume of the additional York store dispute does not even achieve 2% of those realized in the currency.
Currency pairs and argument rate
In forex trading once currency pairs (cryptomoedas and more). By analyzing the EUR / USD disagreement rate, you can see how many USD (listed or supplementary currency) you infatuation to purchase 1 EUR (base currency).
Therefore, if the argument rate of the EUR / USD currency pair is 1.2356, this means that each euro can purchase 1.2356 dollars.
If the squabble rate increases, it means that the base currency has strengthened adjoining the supplementary currency. If the difference of opinion 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 market is considered the most liquid announce in the world. Basically, this means that you can buy any currency whenever you want, as long as the push is open.
- keen and decentralized: the foreign squabble announce is a on the go and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, touch the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading upon the foreign squabble shout out is the number of hours of operation; The foreign difference of opinion market is admission 24 hours a day, five operating days a week, which makes it utterly handsome for many traders.
What are the factors that accomplish the foreign quarrel market?
As currency transactions are immediate, the price of foreign argument is affected by the pretend of supply and demand and, consequently, by speculation.
Thus, stability and the political and economic events, as well 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 do its stuff the price of a currency by adopting positive economic dealings and announcements. For example, a rise in interest rates in the US Federal unfriendliness would accumulation the value of the US currency.
- Political, social and economic events. If Forex participants admit that a social event, can disturb the political, economic or natural extension or end in a currency, they will amend the shout out price once its operations that have enough money regulate and demand for the currency concerned.
The more people receive that a consistent trend is followed, the more it will produce a result push prices, as this will reflect broadcast sentiment.
