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Trade
What is Forex
What is Forex not many people know, but only guess. Forex (FOReign EXchange —"foreign exchange)" is not an exchange but a market of interbank currency exchange at a floating exchange rate. That is, in the market there is one fixed price of a currency and its value is calculated in other currencies, fluctuates constantly. By itself, the market price formed by demand and supply that appear on the part of traders.
In the international market, there are not only speculators, the purpose of which is profit due to the difference between the rates of the currency pair, but there are plenty of other parties for other purposes. For example, the regulatory objectives of Central banks, exchange bureaus, interest from the point of view of hedging.
Currency market participants
The annual turnover of the entire system is striking, because in 2010 it amounted to 4 trillion. USD. Currency exchange involved: Central and commercial banks, various investment funds, insurance companies, brokers, dealing centers, corporations, and so on. Currency speculators in Forex, as a rule, are clients of big companies that have access to the market. Such agents can be brokers, brokerage companies, commercial banks.
It turns out that the trader works through an intermediary that trade directly is connected and with need much to spend on direct market access and the need to work on very heavily.
Due to the fact that the company is "the guide" concludes the requests of its clients, it can execute trading orders. The trader typically provided with the capability to margin trading. In this case, a person has no need to have huge capital in order to carry out operations. When opening a position, the Deposit amount is deducted from the capital of the speculator, which is fixed until the completion of the transaction, and the rest of the amount selects the broker or Bank.
Forex and margin trading
In CIS countries most often Forex understand exactly marginal speculative trade through dealing centers and less through commercial banks. As mentioned above, almost all companies offer all who wish to try yourself as currency speculators, it offers margin trading. At the same time, this type of trading is the most risky for the trader.
The proposed activity involves the opportunity for profit through the implementation of speculative market operations. In other words, the person will need to buy cheap and sell expensive to make due to the difference in exchange rates to make a profit.
Attractive features of Forex is the lack of bosses in the work of the trader, the opportunity to start trading with very small capital, work at any time of day and so on. Almost everyone will be able to find such a market advantage that will be very important when choosing activities. No one bothers to combine work with Forex trading.
To make deals you can even in the night time, every or every day, to choose the most understandable to the speculator market situation to implement surgery. All this is very welcome by many people, allowing the market to get acquainted with new members constantly.
Forex and stock exchange
Forex, as mentioned above, is not an exchange. We can say that it unites various exchanges, thus supporting the liquidity of its system. Due to the fact that different times of day around the world, the crossing of different exchanges leads to what is called the Forex - currency market. It is worth considering that the demand for different currencies is changing, including which exchanges are currently open and which are closed. For example, GBP will be more and more popular in European exchanges.
Control over the currency operations in Russia or Ukraine are handled by the Central Bank and the national Bank respectively. At the same time, you can pay attention to the fact that the majority of DTS are registered in offshore zones, thereby avoiding the legal and tax issues in their direction. A number of companies may not have their representative offices in the countries where services are offered. Thus, the trader can choose the company through which will be implemented by trade. To select the organization to open its account, Deposit and withdraw funds a person can via the Internet.
Forex at the moment
Every year the number of currency speculators increases significantly, which may be associated with the improvement of financial literacy of the population, as well as with the accessibility of the Internet. Not the last role in the development of the Forex industry was played by the improvement of trading conditions, which is observed from the side of the dealing centers. The rivalry between the organizations is very hands on customers. Thus, people can already try to carry out operations, Fund your account with just a few dollars.
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| Category: Forex | Added by: (06.11.2017)
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| Views: 515
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