How does the Forex market works ?
Prerequisites for the emergence of a trading platform for foreign exchange on a global scale there for a long time. The international Forex market has been in its present form was created and is officially recognized only in 1971, the main item on it are the currencies of different countries.
The attractive market Forex (Forex) for investors?
Due to the large number of participants, the Forex market fluctuations occur constantly, because quotes are changing every second, it gives the possibility to make a lot of speculative operations in a relatively short time.
With the development of Internet technologies and the Forex market (Forex) has become particularly attractive to private investors, who have a relatively small capital, as they can easily get “credit” from the broker (leverage). The ratio of credit to the private finance forex in certain markets and some brokers may be one to one thousand.
Forex market without difficulty allows to increase the capital by 30-50% monthly. Pledge of effective work in the Forex market is to educate and constant replenishment of store of knowledge, self-improvement. Traders with experience in Forex trading on strategies that take into account all the objective and subjective factors affecting the price of the currency.
The Forex market created by the big players. The main driving force of the Forex market is the movement of capital between states, as well as the economic situation of the leading countries of the world, technical analysis, psychological, political factors.
How to conquer the Forex market?
To paraphrase this question, we can say otherwise: how to get rich by trading currency. Make it easy. Although history is replete with examples where the Forex market (Forex) earn hundreds of millions and billions of dollars, all this – the lot of rich people. In this case, the actual folk wisdom that a lot of money doing a lot of money. But most traders operating in the Forex market, is not thinking about super-profits, content with a large enough yield with minimal risk. However, everything is relative.
The Forex market makes it possible without any problems to raise capital on average by 30-50% per year. The risks of losing everything will be minimal. None of the tools does not have such a high investment attractiveness. Moreover, many experts of the Forex market (Forex) and real traders reasonably argue that with adequate increase in the degree of risk to earn 100 percent or more a year – is also not a problem. And there are a lot of real evidence.
The key to success in the Forex market is the training and constant updating of luggage knowledge, self-improvement. Experienced traders trade on strategies that take into account all the objective and subjective factors affecting the value of currencies. Among the experts Forex there is a perception that the funds invested in training pay off with interest. The main thing is to treat trade as a job, not to play, and earn money by their own labor.
Who creates the market Forex?
The number of bidders is not limited by any boundaries. However, the Forex market is formed by large players. It banks at various levels and investment funds. Individuals and small businesses that do not have significant capital, located on the Forex market through intermediaries – brokers and dealing centers.
To date, the currency market forex / forex market has become a global, united by a common communications network market. Work on the currency market forex / forex market starts on Monday morning and closes on Friday evening. Commercial market participants forex / forex market depends on the time zones. There are several trading sessions.
The largest volume of transactions accounted for the European session. US and Asian session, considered the most aggressive. But the coolest – New Zealand and the Australian session.
The amount of the daily volume of conversion transactions in the world amounts to about $ 2 trillion. On the London market accounted for about 32% of the turnover, the share markets of the USA – 18%, Germany – 10%. Transactions with US dollar accounted for 70%. The share of electronic brokers now account for about 10% of the turnover of the currency market FOREX.
The main feature of the currency market, attracted the small players – is the ability to purchase and sale of foreign currencies in the absence of the trader’s total amount required for the transaction. Brokers providing services of margin trading, require making a security deposit and allow customers to make purchases and sales of currencies in the amount of 40 – 50, sometimes up to 100 times greater than the deposit made. The risk of loss lies with the customer, the deposit insures the broker.
What is driving the market? Reasonable question. The main driving force of the foreign exchange market Forex (Forex) is the movement of capital between countries, the economic health of the leading countries of the world, political and psychological factors, as well as technical analysis.
All of this gives the daily “rich food” to the participants of the currency market Forex (Forex) to build their own strategies for profit. The task of the experts Forex is to organize all the data and carry out their analysis of the market based on quality.