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Trade
Currency Forex
Currency on the Forex market plays a key role in tool which is used by all market participants. Currency Forex it is a kind of product that is bought and sold by traders. A reasonable question would be that if money is a commodity, why it is possible to pay for the purchase?
Indeed, buying or selling money may sound strange to many people, however, it is worth remembering that Einstein was always talking about relativity. In Forex also all is relative, including the product and its price. We can, for example, buy euros for dollars and Vice versa can. The situation becomes even more interesting if you pay attention to the range of banknotes available for trade on Forex.
Currency pairs on Forex
In the market of one currency measured in another currency. For example, you can buy EUR, paying for them with their USD. The same us dollar exchange rate is daily watching the whole country, usually calculated in rubles. Can in the news to say that today's dollar equals 30 rubles and 10 kopecks. That is, if we decide to buy 1 USD, it is above the said amount will have to pay for it.
It turns out that we one monetary unit purchased for banknotes of another country. The ratio of these trading instruments exchange rates will be the market quotation.
A ratio of two currencies, one of which we buy, and second give called currency pair. Couples can be varied and their full list is available for speculative activity, can be observed in the trading terminal. The trader chooses which tools he wants to sell or buy.
What currency pairs are the objects of the trading activity of speculators. You cannot just buy or sell EUR JPY, because you first need to identify which signs we are ready to give when you bought it or what I want to when selling.
Different currency pairs
Not difficult to see that there are a number of shopping tools that you can use. Some of them, like EUR/USD, GBP/USD, USD/JPY meet at each broker. More exotic currency pairs can be found far not in all companies. So if You need to trade certain instruments, it is necessary to check availability in that company, which decided to open an account. In addition, you should pay attention to the magnitude of the spread, which can greatly vary depending on the broker.
Than exotic currency pair, the higher the probability that it will have a large spread. Common tools that are in high demand among traders, on the contrary possess small values of the Commission. For example, EUR/USD, you can find a Commission of 2 pips per trade. At the same time exotic pairs the spread could be ten times more.
A list of all the instruments, as well as the terms and conditions of purchase and sale can be found in the trading terminal of the broker.
No one else insists that speculators worked with certain pairs. Each person can choose those currencies, the price movement which he considers to be the most predictable. Even companies in which the list of choices is relatively small, certainly can offer at least 20 currency pairs.
Usually traders choose a variant to work, based on the characteristics of their systems. This allows you to accurately select the pair that best fits the chosen strategy. Thus, a person always has the opportunity to compare, test, test yourself. Someone who works with only two kinds of money, and some can engage in their activities the entire available Arsenal.
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| Category: Forex | Added by: (06.11.2017)
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| Views: 283
| Rating: 0.0/0 |
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