外汇ç»çºªå•†è¯„论 - Unlike the stocks and commodities market forex is a unconditionally decentralized publicize which means that there is no central location and there are no formal exchanges where transactions give a positive response place. very nearly all forex trading is finished over-the-counter electronically by telephone, internet or in person.
Forex is a general term combining all worldwide financial institutions and organizations of every sizes into a single make known place.
Investors gain by correctly forecasting future values of currencies. E.g. if you think that the U.S. dollar is going to growth in value adjoining the Canadian dollar you can purchase the USDCAD currency pair. If you are right and the value of the U.S. dollar increases you can sell the pair for a difficult price.
Your profit is the difference amid 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", next known as the Portuguese currency market. The currency is the financial manner taking into account the largest dimension and the highest liquidity in the world, in the manner of more than 4 billion dollars a morning in classified ad movements. The size of the foreign disagreement spread around is such that the trading volume of the new York store clash does not even achieve 2% of those realized in the currency.
Currency pairs and squabble rate
In forex trading with currency pairs (cryptomoedas and more). By analyzing the EUR / USD exchange rate, you can see how many USD (listed or additional currency) you habit to buy 1 EUR (base currency).
Therefore, if the dispute rate of the EUR / USD currency pair is 1.2356, this means that each euro can buy 1.2356 dollars.
If the squabble rate increases, it means that the base currency has strengthened next to the supplementary currency. If the argument 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 announce is considered the most liquid announce in the world. Basically, this means that you can buy any currency whenever you want, as long as the shout from the rooftops is open.
- practicing and decentralized: the foreign row broadcast is a energetic and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, disturb the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading upon the foreign dispute make known is the number of hours of operation; The foreign quarrel present is entre 24 hours a day, five operating days a week, which makes it unconditionally handsome for many traders.
What are the factors that put on an act the foreign row market?
As currency transactions are immediate, the price of foreign difference of opinion is affected by the play in of supply and request and, consequently, by speculation.
Thus, stability and the political and economic events, as capably as the monetary policy of the countries, are elements that picture the contributions.
- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly appear in the price of a currency by adopting certain economic events and announcements. For example, a rise in raptness rates in the US Federal reserve would addition the value of the US currency.
- Political, social and economic events. If Forex participants recognize that a social event, can put on the political, economic or natural augmentation or fade away in a currency, they will tweak the publicize price past its operations that have the funds for fiddle with and demand for the currency concerned.
The more people say you will that a consistent trend is followed, the more it will produce a result spread around prices, as this will reflect present sentiment.
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