外汇ç»çºªå•†è¯„论 - Unlike the stocks and commodities publicize forex is a agreed decentralized puff which means that there is no central location and there are no formal exchanges where transactions assume place. virtually all forex trading is curtains 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 public place.
Investors gain by correctly forecasting innovative values of currencies. E.g. if you think that the U.S. dollar is going to lump in value neighboring 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 complex price.
Your profit is the difference between 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", after that known as the Portuguese currency market. The currency is the financial melody taking into consideration the largest dimension and the highest liquidity in the world, taking into consideration more than 4 billion dollars a day in public notice movements. The size of the foreign argument market is such that the trading volume of the further York accretion argument does not even attain 2% of those realized in the currency.
Currency pairs and disagreement rate
In forex trading with currency pairs (cryptomoedas and more). By analyzing the EUR / USD dispute rate, you can see how many USD (listed or subsidiary currency) you dependence to buy 1 EUR (base currency).
Therefore, if the clash rate of the EUR / USD currency pair is 1.2356, this means that each euro can purchase 1.2356 dollars.
If the quarrel rate increases, it means that the base currency has strengthened neighboring 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 market is considered the most liquid broadcast in the world. Basically, this means that you can buy any currency whenever you want, as long as the make known is open.
- functional and decentralized: the foreign exchange announce is a full of life and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, touch the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading on the foreign quarrel make known is the number of hours of operation; The foreign squabble shout out is open 24 hours a day, five operating days a week, which makes it totally attractive for many traders.
What are the factors that play-act the foreign difference of opinion market?
As currency transactions are immediate, the price of foreign exchange is affected by the accomplishment 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 describe the contributions.
- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly action the price of a currency by adopting positive economic trial and announcements. For example, a rise in captivation rates in the US Federal superiority would layer the value of the US currency.
- Political, social and economic events. If Forex participants admit that a social event, can imitate the political, economic or natural elaboration or decrease in a currency, they will bend the present price later its operations that find the money for change and demand for the currency concerned.
The more people take on that a consistent trend is followed, the more it will play-act spread around prices, as this will reflect market sentiment.
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