What is circulation Forex ?
The change of foreign exchange market (Forex) market is the cash, does not stop where they are trading currencies of all countries of the world through intermediaries. Are buying and selling of foreign currencies simultaneously and permanently through local and global markets and investments increase or decrease the value of traders based on currency movements. It can change market conditions, trading in foreign currencies at any time in reaction to immediate events.
The change of foreign exchange market (Forex) market is the cash, does not stop where they are trading currencies of all countries of the world through intermediaries. Are buying and selling of foreign currencies simultaneously and permanently through local and global markets and investments increase or decrease the value of traders based on currency movements. It can change market conditions, trading in foreign currencies at any time in reaction to immediate events.
Among the main incentives for the circulation of currency by private investors and attractions for short-Trading - Forex-reaching implications for the following: trading 24 hours a day, 5 days a week with the powers and uninterrupted access to global Forex Mtdaulin.
In addition to these incentives as follows: Market characterized by a large volume of liquidity, which makes the circulation of most currencies easy "one. Changing market provides opportunities for profit. Forex tools for controlling the standard rate of exposure to risk. The ability to achieve profitability in the high and low markets. Trading with the financial strengthening of the crane with the requirements of the margin of borrowing low. Many options for trading with the proportion of zero commission.
circulation Forex :
Profit is the goal of investors in the Forex trading through the movement of foreign currency. Circulation is Forex or foreign exchange is always in pairs. For example, the exchange rate of the euro / dollar in August 26, 2003 was 1.0857. Reference to this figure also known as the "Forex rate" or "modified". If the investor had bought 1000 euros on that date it would have paid 1085.70 U.S. dollars. After a year of that date, the exchange rate was 1.2083, which means that the value of the euro (the numerical values of the exchange rate of euro / dollars) has increased relative to the dollar, U.S. investors can now sell the 1000 euros to receive 1208.30 dollars. Therefore, the investor will be 122.60 U.S. dollars more than the amount which was started by a year ago. In any case, in order to know if the investor has a good investment or not. We need to do a comparison of the investment options for other investment alternatives. The minimum is to compare the return on investment (ROI) return on investment "without risk". Example of a risk-free investment is long-term bonds of the U.S. government where there is no chance of error, such as the U.S. government going bankrupt or that can not or do not want to pay Maaleha of credit obligations. (Please note that past performance is not a presumption of future performance)
When the circulation of currency trading only when you feel that the currency will be purchased by the value of the currency to sell. If the increased value of the currency in which you have purchased resale until you believe in access to your earnings. Open Section (also called the open position) is where the circulation of working had to sell or buy a pair of currencies has not to date the sale or purchase of the same value for the closure of this position. In general, estimated that between 70% to 90% of the FX market depend on intuition. The wording of this, we can in other words, saying that any person or institution who buy or sell currency they do not have a plan for delivery of currency at the end of the day, but they were soon expected to set out the movement of such currency
When the circulation of currency trading only when you feel that the currency will be purchased by the value of the currency to sell. If the increased value of the currency in which you have purchased resale until you believe in access to your earnings. Open Section (also called the open position) is where the circulation of working had to sell or buy a pair of currencies has not to date the sale or purchase of the same value for the closure of this position. In general, estimated that between 70% to 90% of the FX market depend on intuition. The wording of this, we can in other words, saying that any person or institution who buy or sell currency they do not have a plan for delivery of currency at the end of the day, but they were soon expected to set out the movement of such currency
Exchange rate :
Since currencies are traded in pairs and one will be changed compared to the other when traded, the rate of change is called the exchange rate. Most currencies are traded against the U.S. dollar (USD) over the next four coins in the ratio of circulation is the euro (EUR) and Japanese Yen (JPY) and the pound sterling (GBP) and Swiss franc (CHF). Represent the majority of the five-currency market and are called major currencies or "the Great." Some sources include the Australian dollar is also part of a group of major currencies.
Since currencies are traded in pairs and one will be changed compared to the other when traded, the rate of change is called the exchange rate. Most currencies are traded against the U.S. dollar (USD) over the next four coins in the ratio of circulation is the euro (EUR) and Japanese Yen (JPY) and the pound sterling (GBP) and Swiss franc (CHF). Represent the majority of the five-currency market and are called major currencies or "the Great." Some sources include the Australian dollar is also part of a group of major currencies.
The first currency in the pair referred to as trading currency currency basis and referred to the second meter, or the currency of the offer. For this reason, the meter or the currency of the offer will be the extension rate, the base currency is the currency here. The value of the base currency (denominator) is always 1. Therefore, the exchange rate 'know how the buyer must pay the meter or the currency of the offer for one unit of base currency. The exchange rate is known also how the seller will receive from the offer or counter currency when selling one unit of base currency. For example, the exchange rate for the euro / dollar of $ 1.2083 set for the buyer of euros that 1.2083 U.S. dollars must be paid to obtain 1 euro.
At any stage of the place or time if the investor to buy any currency and immediately sells it did not change in the exchange rate, the investor will lose some money. The reason for this that the offer price, which is how the meter will take the currency of the offer or sale of one unit of base currency is always less than the asking price, which is how to be paid from the coin meter or offer to buy one unit of base currency. For example, the rate of € / U.S. $ supply / demand in your bank may be 1.2015/1.3015 and 1000-point difference represents the smallest rate of change (also called "points to 1 point with the smallest rate of change = 0.0001) and this rate is very high compared to the rate of price demand / supply of currencies, which investors find the platform, such as 1.2015/1.2020 Forex indirect 5-point lead to the smallest rate of change. In general, smaller differences for the best Forex investors since they are also asking for a smaller movement in exchange rates to make profits from trading.
Margin - the amount of risk by :
Require banks and / or service providers on-line trading to ensure that confirms that the investor can pay in case of loss. This is called the margin of security and also known as the minimum insurance in the Forex markets. In practice, it is an applicant in the calculation of the amount of rolling is intended to cover any currency trading losses in the future. Can be the margin of private investors from trading in markets with a high minimum units of trading by allowing Mtdaulin possession of the position of much greater than the value of their accounts. Trading and enhanced support loan rate of profit but it is also likely to inflate the rate of losses and taking them to the risk organization.
Require banks and / or service providers on-line trading to ensure that confirms that the investor can pay in case of loss. This is called the margin of security and also known as the minimum insurance in the Forex markets. In practice, it is an applicant in the calculation of the amount of rolling is intended to cover any currency trading losses in the future. Can be the margin of private investors from trading in markets with a high minimum units of trading by allowing Mtdaulin possession of the position of much greater than the value of their accounts. Trading and enhanced support loan rate of profit but it is also likely to inflate the rate of losses and taking them to the risk organization.
Serried ranks of the financial funding :
Financial lever is the core of the financing, such as the use of credit to buy using margin trading is common in Forex. Loan / crane financial account marginal content Biidaek principle. This may result in that it can control the amount of $ 100000 in a few, such as U.S. $ 1000 and a relatively small movement in the market will have a greater impact on the capital with a consistent money deposited or that must be deposited. This may work against you as it may work for you. Have borne the loss of all deposit Magmt Khamc in the capital of what you deposit additional funds to maintain your position
Financial lever is the core of the financing, such as the use of credit to buy using margin trading is common in Forex. Loan / crane financial account marginal content Biidaek principle. This may result in that it can control the amount of $ 100000 in a few, such as U.S. $ 1000 and a relatively small movement in the market will have a greater impact on the capital with a consistent money deposited or that must be deposited. This may work against you as it may work for you. Have borne the loss of all deposit Magmt Khamc in the capital of what you deposit additional funds to maintain your position
There are five ways investors can trade in Forex directly or indirectly:
Direct market Deferred contracts and futures contracts Options Contracts for difference Speculation on the difference
Direct market Deferred contracts and futures contracts Options Contracts for difference Speculation on the difference
Immediate treatment :
Immediate treatment is a direct exchange of one currency against another. The spot rate is the rate of the current market price and the price is also alleged file (the hallmark of the current moment). Transactions do not require immediate or prompt payment of settlements "in the same moment," the settlement date or maturity date is the second working day after the date of the transaction (or "the date of circulation") on the basis of what has been agreed upon in the treatment of each of the traders. The time period of days to confirm the agreement and the order of liquidation or filing the necessary discount in bank accounts in several international locations.
Immediate treatment is a direct exchange of one currency against another. The spot rate is the rate of the current market price and the price is also alleged file (the hallmark of the current moment). Transactions do not require immediate or prompt payment of settlements "in the same moment," the settlement date or maturity date is the second working day after the date of the transaction (or "the date of circulation") on the basis of what has been agreed upon in the treatment of each of the traders. The time period of days to confirm the agreement and the order of liquidation or filing the necessary discount in bank accounts in several international locations.
Risk :
Despite the fact that Forex trading can lead to very profitable results, however, that there are some risks included. Rate risk and the risks of trading prices, the rate of interest rates and credit risks and risks related to the States and often continue for 80% of all currency transactions for a period of seven days or less, while a 40% of transactions for a period of less than two days and taking into account the short life cycle of the typical trading technical indicators affecting heavily on the decisions of entry and exit and the filing of applications.
Risk warning:
Please note that Forex trading (currency trading) involves a risk of causing loss and can be clear to all appropriate persons.
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