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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 are the largest and most financial Atharhasouk in the world and the fastest growing.
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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 large financial institutions manage billions of dollars invested as individuals trading a few hundred dollars as well.
Start Forex Trading
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 device to the Internet and the computer connector account trading in the forex 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 is to exchange the currency pair price. 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, five days a week. Generally reflect the economic conditions of the currency exchange rates of countries. In the case of the European economy is better than the US economy goes up the euro against the US dollar and vice versa.
How to get a profit in the forex market
We will hit an example of a forex operation. Let's say that 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 sell the euro against the US dollar by the exchange rate is 1.5500 Vtabie € 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 sell the euro against the US dollar its price 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 the 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 them and the so-called "price of the offer price." The difference between these two prices is called "Spread". The asking price is higher than the offer price always.
Leverage
Or how to trade hundred times your money!
If 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 1000 euros only. Use this leverage you can open a deal worth 100 times greater. The profit or loss will be 100 times greater also is therefore required extreme caution when opening deals.
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 if you think that the price will rise. This is the way of trade carried out by millions of people 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 the current profit, or your loss through a window open positions. The deal can remain open as long as you want. In case you want to close just a click of a button x in the window of the open positions.
Long and short trades
In the example above, we anticipate high price 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 will we 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 more cheaply later. This process is called a short deal provides an opportunity to earn money at the lower exchange rate.