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2011-Nov-29 21:37 - An Introduction to Forex |
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| For the general public the term forex means quick way to make or loose money. The forex market is very tempting opportunity to do business, taking advantage of upward and downward movements of national currencies. It�s the most liquid market in the world, which does multi million trading every day, via the internet and telephone. Among the strengths of this particular market, is the absence of commissions for the trading conducted and the absence of actual locations of the buildings market. There are no physical exchange of currencies and the market is open from Monday to Friday for 24 hours of 24: Starting from 23:00 on Sunday, until 23:00 on Friday. In the forex market traders are the protagonists, ie the speculators, and brokers, or intermediaries that help place their "bets". Traders in forex market operates just as if they were betting on a currency. The basic mechanism is to buy a currency and sell another, to be able to profit from price difference. A concrete example is when the trader believes that the euro will increase its value against the dollar, he will open a place of purchase, or long for the pair euro-dollar. All couples have two prices: a purchase and sales, which are constantly changing depending on market fluctuations and global economic events. The currency pairs are indicated by initials, so we will find the EUR / USD or EUR-USD, GBP / JPY-Japanese yen or British pound and then below EUR / JPY, USD / JPY, and so on ... In addition to many national currencies in the forex market, commodities such as oil and other metals, like gold are also traded. The main gripe is that any aspiring trader, is to lose money before learning the "rules of the game" and gain experience from it. |
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