Sabtu, 04 Agustus 2012

“How To” Start Trading The Forex Market?

What is FOREX or Foreign Exchange? PART I

The foreign exchange market (also known as Forex or FX market) is the largest financial market in the world, with over $ 1.5 trillion daily change of ownership.

It's bigger than all capital Treasury and U.S. markets combined!

Unlike other financial markets that operate in a centralized location (ie stock exchange), the Forex market in the world has no central location. This is a global electronic network of banks, financial institutions and individual traders, all involved in buying and selling currencies. Another important feature of the Forex market is that it operates 24 hours a day, according to the opening and closing of financial centers in countries around the world, starting each day in Sydney, then Tokyo, London and New York . At any time, anywhere there are buyers and sellers so that the currency market the most liquid market in the world.

Traditionally, access to the forex market was made available to only large banks and other financial institutions. With advances in technology over the years, however, the Forex market is now available for everyone, managers of banks, individual traders trading retail accounts. The time to get involved in this exciting global market has never been better than now. Open an account and become an active player in the biggest market in the world.

The forex market is very different than trading currencies on the futures market, and much easier than trading stocks or commodities.

Whether consciously or not, you already have a role in the foreign exchange market. Just because you have money in your pocket makes you an investor in the currency, especially in the U.S. dollar. Taking into U.S. Dollars, you have not chosen to hold the currencies of other countries. Your purchases of stocks, bonds or other investments, and money in your bank account, investments, contributing greatly to the integrity of the value of their denominated currency ¨ the U.S. Dollar. Because the value of dollar fluctuations and fluctuations in exchange rates can change your investments resulting in value, your overall financial situation. In this context, it is not surprising that many investors took advantage of fluctuating exchange rates, volatility of the exchange market as a means to increase their capital.

Example: Suppose you have $ 1000 and bought Euros when the exchange rate was € 1.50 per dollar. You would then have 1500 Euros. The value of the euro against the U.S. dollar is then raised, you would sell (exchange) your Euros for dollars and dollars more than the beginning.


Maybe you will find:

EUR / USD last trade 1.5000 means
One euro is worth $ 1.50.

The first currency (in this example, the EURO) is the base currency as the currency and the second (/ USD) or as a counter variable.

The FOREX plays a vital role in the global economy and there will always be a huge need for currency exchange. International trade increases the increases in technology and communication. As long as there is international trade, it will be a foreign exchange market. The foreign exchange market must exist so a country like Germany can sell products in the U.S. and be able to receive Euros in exchange for U.S. dollars.

Risk Warning:

The risks of forex trading

Forex margin trading is an extremely risky form of investment and is only suitable for individuals and institutions, which provides potential losses. An account with a broker, you can exchange foreign currencies on a highly leveraged basis (up to 400 times your account equity). Funds in an account that is trading is the leverage may be completely lost if the item (s) in the account of the experience even a swing instead of a per cent of its value. Given the possibility of losing the entire investment, speculation in the foreign exchange market, the market will be undertaken with risk capital funds that if lost, will have no material financial impact on the well -be investors.

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