The currency exchange market (Forex or Fx) - is a decentralized global market where currencies are traded. It has a separate area for operations. Instead, traders and other market participants transact electronically according to the OTC (over-the-counter) principle, ie out of the bag.
Forex market is the largest financier of the world, and volumes of transactions in this market are being increased. The daily turnover of 4 billion USD, where 80% of this amount belongs to speculative transactions, which open to profit from the difference in rates.
These figures find that market liquidity is too high, and the offer for sale and purchase of foreign exchange is enormous. This means it is very easy to make a transaction of sale, and foreign exchange rates, from the point of view of an independent trader, can change very quickly.
Trading session in forex trading
The currency exchange market never sleeps and always changing prices. It is the only market that runs all day 24/5. Currencies are traded on exchanges and the largest trade areas in the world: in Zurich, Hong Kong, New York, Tokyo, Frankfurt, London, Sydney and Paris. This means that the market is always open, if the bags are closed in part of the world, then they start working on another.
The lack of timeframes is a very important condition for traders with a busy schedule. They will not have to think about the time of the opening and closing of the trading sessions, and they can operate on any convenient time for them.
How to trade Forex?
Operations in the foreign exchange market involves buying one currency and selling another at the same time. This means that you can express the price of a currency in a number of other currencies. An independent observer could conclude that trading in Forex is speculation in the correlation of such fees.
Each currency pair is a base currency (this is the first in the pair) and a listed (the second currency in the pair). The currency pair indicates how many units of the quote currency is needed to buy one unit of the base currency. Observe the currency pair EUR / USD. If you suppose that the rate of the euro will rise with repect to the dollar, you can buy the EUR / USD. Buying rather opening a long position, you sell the quote currency and buy the base currency. That is, buy EUR / USD at low price, so that in the future sell at the highest price. The difference will be your profit. If you believe that the rate of the euro, on the contrary, will drop against the dollar, sell EUR / USD or opens a short position. In this case euro You buy US dollars.
s But you should not forget the risks. If you have bought euros with dollars, believing that the rate of the EU currency will go up, but the dollar strengthens despite provisions, you will suffer losses. Forex trading can provide high gain, but do not forget the risks it contains.
As you can see, the Forex market is not very difficult to understand, and it is not difficult to operate in this market. It is enough to take a few minutes to become a market participant and start winning. Our website will help you learn to trade Forex and provide all the required knowledge for using the online trading platform. It is recommended to study teaching materials and electronic books, dedicated to trading in Forex, allowing you to trade successfully and effectively manage risks.
Forex market participants
In the market there are many participants, sometimes called Forex players. Participants trade, pursuing different objectives. You do not think you can do business just for the benefit of foreign exchange rates. Each participant has its own role, and complementing, they make the market more stable.
The main market participants:
governments and central banks of countries
banks and commercial companies
hedge funds
brokerage companies
Investors
indivuduales traders
Speculators
Forex market is the largest financier of the world, and volumes of transactions in this market are being increased. The daily turnover of 4 billion USD, where 80% of this amount belongs to speculative transactions, which open to profit from the difference in rates.
These figures find that market liquidity is too high, and the offer for sale and purchase of foreign exchange is enormous. This means it is very easy to make a transaction of sale, and foreign exchange rates, from the point of view of an independent trader, can change very quickly.
Trading session in forex trading
The currency exchange market never sleeps and always changing prices. It is the only market that runs all day 24/5. Currencies are traded on exchanges and the largest trade areas in the world: in Zurich, Hong Kong, New York, Tokyo, Frankfurt, London, Sydney and Paris. This means that the market is always open, if the bags are closed in part of the world, then they start working on another.
The lack of timeframes is a very important condition for traders with a busy schedule. They will not have to think about the time of the opening and closing of the trading sessions, and they can operate on any convenient time for them.
How to trade Forex?
Operations in the foreign exchange market involves buying one currency and selling another at the same time. This means that you can express the price of a currency in a number of other currencies. An independent observer could conclude that trading in Forex is speculation in the correlation of such fees.
Each currency pair is a base currency (this is the first in the pair) and a listed (the second currency in the pair). The currency pair indicates how many units of the quote currency is needed to buy one unit of the base currency. Observe the currency pair EUR / USD. If you suppose that the rate of the euro will rise with repect to the dollar, you can buy the EUR / USD. Buying rather opening a long position, you sell the quote currency and buy the base currency. That is, buy EUR / USD at low price, so that in the future sell at the highest price. The difference will be your profit. If you believe that the rate of the euro, on the contrary, will drop against the dollar, sell EUR / USD or opens a short position. In this case euro You buy US dollars.
s But you should not forget the risks. If you have bought euros with dollars, believing that the rate of the EU currency will go up, but the dollar strengthens despite provisions, you will suffer losses. Forex trading can provide high gain, but do not forget the risks it contains.
As you can see, the Forex market is not very difficult to understand, and it is not difficult to operate in this market. It is enough to take a few minutes to become a market participant and start winning. Our website will help you learn to trade Forex and provide all the required knowledge for using the online trading platform. It is recommended to study teaching materials and electronic books, dedicated to trading in Forex, allowing you to trade successfully and effectively manage risks.
Forex market participants
In the market there are many participants, sometimes called Forex players. Participants trade, pursuing different objectives. You do not think you can do business just for the benefit of foreign exchange rates. Each participant has its own role, and complementing, they make the market more stable.
The main market participants:
governments and central banks of countries
banks and commercial companies
hedge funds
brokerage companies
Investors
indivuduales traders
Speculators