外汇ç»çºªå•†è¯„论 - Unlike the stocks and commodities spread around forex is a unquestionably decentralized make public which means that there is no central location and there are no formal exchanges where transactions acknowledge place. approximately every forex trading is done over-the-counter electronically by telephone, internet or in person.
Forex is a general term combining all worldwide financial institutions and organizations of all sizes into a single announce place.
Investors gain by correctly forecasting progressive values of currencies. E.g. if you think that the U.S. dollar is going to growth in value adjacent to the Canadian dollar you can buy the USDCAD currency pair. If you are right and the value of the U.S. dollar increases you can sell the pair for a far along price.
Your gain is the difference together with the purchase price and the sale price multiplied by the number of lots traded - trade size - or vice versa if you sell the pair short.
What is Forex?
Forex is the acronym for "currency market", with known as the Portuguese currency market. The currency is the financial circulate similar to the largest dimension and the highest liquidity in the world, taking into consideration more than 4 billion dollars a hours of daylight in commercial movements. The size of the foreign dispute push is such that the trading volume of the other York buildup squabble does not even reach 2% of those realized in the currency.
Currency pairs and argument rate
In forex trading following currency pairs (cryptomoedas and more). By analyzing the EUR / USD disagreement rate, you can look how many USD (listed or secondary currency) you dependence to buy 1 EUR (base currency).
Therefore, if the disagreement rate of the EUR / USD currency pair is 1.2356, this means that each euro can buy 1.2356 dollars.
If the exchange rate increases, it means that the base currency has strengthened against the supplementary currency. If the quarrel rate eventually decreases, it means the opposite.
The characteristics of the Forex or Forex market
- Liquidity: Because of the $ 5 billion that circulates daily, the foreign squabble promote is considered the most liquid make known in the world. Basically, this means that you can purchase any currency whenever you want, as long as the puff is open.
- functioning and decentralized: the foreign disagreement shout out is a effective and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, change the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading on the foreign argument puff is the number of hours of operation; The foreign clash make public is way in 24 hours a day, five operating days a week, which makes it definitely attractive for many traders.
What are the factors that take action the foreign disagreement market?
As currency transactions are immediate, the price of foreign difference of opinion is affected by the perform of supply and request and, consequently, by speculation.
Thus, stability and the embassy and economic events, as capably as the monetary policy of the countries, are elements that characterize the contributions.
- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly take steps the price of a currency by adopting determined economic dealings and announcements. For example, a rise in immersion rates in the US Federal coldness would enlargement the value of the US currency.
- Political, social and economic events. If Forex participants understand that a social event, can change the political, economic or natural clarification or subside in a currency, they will correct the publicize price subsequent to its operations that manage to pay for regulate and demand for the currency concerned.
The more people receive that a consistent trend is followed, the more it will piece of legislation make public prices, as this will reflect shout from the rooftops sentiment.
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