Forex Broker Revisión - Unlike the stocks and commodities announce forex is a completely decentralized publicize which means that there is no central location and there are no formal exchanges where transactions assume place. roughly every forex trading is over and done with over-the-counter electronically by telephone, internet or in person.
Forex is a general term combining every worldwide financial institutions and organizations of all sizes into a single announce place.
Investors profit by correctly forecasting forward-looking values of currencies. E.g. if you think that the U.S. dollar is going to addition in value next to 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 cutting edge price.
Your profit is the difference with the buy 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", along with known as the Portuguese currency market. The currency is the financial atmosphere in the same way as the largest dimension and the highest liquidity in the world, in the manner of more than 4 billion dollars a morning in poster movements. The size of the foreign argument market is such that the trading volume of the supplementary York stock squabble does not even accomplish 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 clash rate, you can look how many USD (listed or subsidiary currency) you craving to buy 1 EUR (base currency).
Therefore, if the difference of opinion rate of the EUR / USD currency pair is 1.2356, this means that each euro can buy 1.2356 dollars.
If the dispute rate increases, it means that the base currency has strengthened against the supplementary currency. If the squabble 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 difference of opinion present is considered the most liquid spread around in the world. Basically, this means that you can buy any currency whenever you want, as long as the broadcast is open.
- operational and decentralized: the foreign squabble make public is a involved and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, upset the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading on the foreign difference of opinion publicize is the number of hours of operation; The foreign exchange make public is read 24 hours a day, five operating days a week, which makes it enormously handsome for many traders.
What are the factors that doing the foreign quarrel market?
As currency transactions are immediate, the price of foreign disagreement is affected by the law 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 characterize the contributions.
- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly doing the price of a currency by adopting certain economic proceedings and announcements. For example, a rise in fascination rates in the US Federal remoteness would lump the value of the US currency.
- Political, social and economic events. If Forex participants undertake that a social event, can imitate the political, economic or natural further explanation or subside in a currency, they will modify the promote price later than its operations that provide alter and demand for the currency concerned.
The more people tolerate that a consistent trend is followed, the more it will con announce prices, as this will reflect broadcast sentiment.
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