What is Forex? 2016

What is Forex?

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The market is called the "Forex" or "FX" is a global market for trading foreign currencies. Daily volume of currency trading in the forex market to exceed US $ 5 trillion and for this reason is the larger and more financial Atharhasouk in the world and the fastest growing. The Forex Trading is very easy. Whether you sell 100 euros to buy the US dollar at the airport or the particular bank swap US $ 100 million against the Japanese yen with another bank, they all forex operations. Invest in the forex market a big financial institutions managing billions of dollars invested as individuals they trade a few hundred dollars as we

You can trade in the forex market as the largest trading banks and investment funds thanks to the Internet.

Everything you need to start trade is just a connector device to the Internet and computer account in the forex trading company.

How the forex market works

The currency to another currency in the forex market exchange. The single most important element in the forex market the currency pair is the exchange rate. Maybe you've seen in the news the following form:

Currency exchange rate pairs

EUR / USD 1.4515

GBP / USD 1.6430

Currency exchange rates are changing very quickly so sometimes several times a second so many of the moves take place 24 hours a day, 5 days a week. Generally reflect the economic conditions of the currency exchange rates of countries. In the case of the European economy better than the US economy goes up the euro against the US dollar and vice versa.

How do you get a profit in the forex market

We will hit an example of a forex operation. Let's say you decided to buy a 1000 euro against the US dollar. The euro / dollar exchange rate, which you can buy it at the moment the price is 1.4500, therefore pays $ 1450.

Later the EUR / USD, which you can by selling the euro against the US dollar exchange rate is 1.5500 Vtabie euros in 1000 and get $ 1550. B1450 dollars has begun and now you have $ 1550 check any profit of $ 100. Instead, the euro / dollar exchange rate, which you can by selling the euro against the US dollar exchange rate is 1.3500. B1450 dollars has begun and now you have $ 1350 check any loss of $ 100.

This is how to achieve profits or losses in the forex market.

The difference between the purchase price and the selling price

If you look at forex trading platform you'll see that there are two prices for each currency pair. One of them is the price at which you can buy by the so-called "demand" The other price is the price at which you can sell it and so-called "price of the offer price." The difference between these two prices is called "spread". The asking price higher than the offer price always.

Leverage

Or how to trade one hundred times your money!

In case the Forex company offering you a leverage ratio of 1: 100 you can trade a hundred times your deposit. That means if you wanted to buy 100,000 euros / dollars you should have only 1000 euros. Use this leverage you can open a deal worth 100 times larger. And profit or loss would be 100 times larger, therefore also you need to be very careful when you open trades.

Open your deal first

To begin, please open a free demo account. Then specify the currency pair EUR / USD, for example, enter the required quantity and pressure on the buy button in case you think that the price will rise. This is the way of trade carried out by millions of people all end the world. Will earn money in the case of appreciation of the euro / dollar rate will be losing money in the event of a low price. You can follow your profit or your loss during the current window Open positions. The deal can remain open as long as you want. In case you want to shut down just a click of a button x in the window Open positions.

Long and short trades

In the above example we have the expectation of price rise of the euro against the dollar, so we bought the euro / dollar in the hope of selling them later at a higher price this process is called a long deal. But what we will do if we are to expect the price decline of the euro against the dollar? Ok, we will carry out the opposite process and we will sell the euro / dollar in the hope of buying at a cheaper price later. This process is called short deal

Before the start of trading in the Forex market 2016

Before the start of trading in the Forex market you have to ask yourself a question in very important.


Certainly that want to enter the forex market in order to gain and nothing is profit, and all of us dream of achieving wealth of trading in the Forex market, but the loss in the forex everything possible Valforks trade like any trade by profit and by also losing, are you ready to bear any losses when your trade in Forex? ..

Let me tell you that the answer must be yes, bear the loss and self-control are the most important qualities of rolling successful in the forex market, the loss came an integral part of currency trading, and when we talk about Forex and variability must mention qualities that must be enjoyed by Forex traders in order to be able to achieve success and large financial gains.

Trading in the Forex market is a form of trade, the probability of occurrence of loss is out of the question, but what encourages investors to engage in the forex market is liquidity available in the market size with an estimated daily trading volume on the forex about $ 4 trillion throughout the day, this huge figure made compensate for the loss is easy, unlike the stock market or any other financial market.


Loss in Forex

 Accept the loss ArtAccept the loss status enjoyed by few, but when your trading in Forex, you accept the loss in Forex is inevitable, if not accept the loss is no doubt that the loss Static again. ☝ through profit loss

Successful is rolling of makes losing an incentive to continue working and trading better, but we can say that professional trader is to learn from losing, and examines the causes well so as not to fall into the trap of loss again, so you have to accept the loss and learn from them and seek to offset the gain in the next transaction.

It can be considered a loss in the Forex as a gain, gain to learn more lessons and lessons, which must examine your loss well to learn them, and is a very important experience keeps and teaches you more explanation and analysis, and can then bris those that offset larger , it can also cause your loss in opening deals come free of mistakes.