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A Forex trader
At first thought to begin this article with the definition of who is a trader, but decided that it would be somewhat dry. I suggest first to understand, and not to a direct definition of the word. Speaking of merchant, it is necessary to imagine that the speculators, whose activities are more widely known.

The challenge is to buy cheap and sell dear, thus, benefit for the speculator is the difference between these trading operations. Trader, this is a speculator only in the stock market, or futures, bonds or currencies. His goal is the same, to earn money due to successful purchases and sales of those market instruments which he identified himself.

Forex trader

Forex trader 
this is a currency speculator, a person who carries out trading operations on Forex. Unlike the seller, earning a living purchase and further sale of potatoes, for example. Foreign exchange trader can not only sell what you already bought but also to sell and what had not. Know it seems, to put it mildly, strange, but it is actually not so difficult to imagine. In the case of buying, the speculator pays the money and acquires some goods, for example, a single lot for a specific currency pair.

Here we have given 100 dollars, and purchased with the help of leverage 0.1 lot EUR/USD currency pair. Here everything is clear, such operations make the people in each store, giving some amount of money and in return receiving the goods. Consider the second option, when a person sells 0.1 lot EUR/USD.

In this embodiment, a currency speculator is like 0.1 lot and is obliged later to give back exactly 0.1. The important point is that you need to give 0.1, not money, no matter how much the volume of this pair will cost at the time, when we give it.

Thus, the trader has the possibility to sell a certain amount, pledging then to buy it and thereby bring it back. If a person believes that the price of oil futures will now begin to fall, he can like to take this futures, sell it while the price is high, and then, when the value of the futures will fall, buy it and return it. Accordingly, the difference obtained as a result of such operations, and will benefit of an employee of the exchange.

Trader - seller of air

Sometimes it is difficult to understand from the procedure to sell what in fact the person does not have. And it is not very important because the speculator does not have to ask anybody in debt the tool that he decided to sell. Instead, the terminal has only two buttons, which may be of interest to us, when we are talking about the opening position.

SELL and BUY allow a person to buy or sell the selected instrument in accordance. For the speculator in foreign currency makes no difference at all, where will what he wants to buy or sell, the most important thing that you can do this simply by pressing the appropriate button. The whole process is automated, i.e. the counterparty is for our application, for example, the purchase automatically. Thus, the exchange of the battles can focus on trading without being distracted by extraneous issues.

The reallocation of funds

Where does the money that is earned by traders on the exchanges? The thing is that every participant in the system of investing their capital on Deposit. Someone earns as a result of trading, and someone loses. Not all market participants are speculators. Some companies need a certain amount of one currency at some point.

The organization just acquires the necessary volume, not trying to be the operation to earn something. In other words, the markets is a redistribution of funds among all participants in the system. Some are forced to buy something for their needs, but for others Forex is way of earning due to speculative actions.

Development trading

Of course, there are some moments in the work of the trader, which may bother those interested in this profession people. First of all, it is that man has no guarantees that he will generally work to earn something. This profession learn over the years, constantly honing his skills.

In advance it is impossible to determine interested in will be able to achieve financial success in trading. So often people combine your day job with Forex. This allows them to not abandoning a stable income to study the foreign exchange market.

Now is actively developing Internet trading, and anyone with access to the Internet can afford to Transact on global financial markets. Even if there is no money to trade Forex, you can open a completely free demo account and make it the same deal, only on a virtual wrappers.

Such accounts help to learn Forex people are unwilling to invest in the trade. Industry is developing very rapidly, and therefore, no one is surprised by the fact that speculators buy and sell currency, gold, stocks, and so forth, not only from your computer but also from mobile phones, tablets and other equipment that has access to the world wide web.

Category: Forex | Added by: (06.11.2017)
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