Forex, what is it?

Forex (Forex) a compound word from the first letters of the term (Foreign Exchange) means that the market is the exchange of world currencies. This depends on the market, government policy, speculators, central banks, banking companies, investors and other financial institutions. According to estimates, the volume of daily trading in the forex market is a $ 4 trillion a day, making the forex market the largest market for trading in the world. Characterized by the Forex market that is open for trading 5 days a week, 24 hours a day, which provides high flexibility in the times of trading is not bound or limited by a particular time zone It combines 3 swear trading different is the section European, Asian and American. Forex market is a market-based on the movement of currency pairs and profit potential available in the rise and fall.

In the past, limited the possibilities available to the trader in the forex market to go to commercial banking institutions that handle currency trading investment objectives or deliberative. But in 1971 has seen a tremendous rise in trading currencies circulating in the wake of the main countries of their currencies, and this step is considered by many the start of the Forex market today.

Nowadays, as well as importers and exporters who deal in Forex, there is a broad spectrum of participants in the activity of the market, including hedge funds, speculators, portfolio managers, retail traders. Each of the two motives for wanting to participate in the forex market. These range from mere motives of payment for goods, services through the hedge of the risk, even pure speculation.

Generally, it is pertinent Bmtdaol Forex retail uses that the market maker or mediator of the Forex. Choose to rolling the currency pair traded wishes to be saved, according to the revelation of his research and analysis. The role of Forex broker in the ever limited to the implementation of trading orders without interference and to give advice. In our time, many brokers provide advice and recommendations daily, and even research and analysis.

To make money in forex trader can buy a currency at a certain price in order to sell them later at a higher price (ie, the so-called long position) thus achieving a profit equal to the difference between the price it paid for the currency pair and the price received from the sale of the husband. The second way to make money is the so-called short position, sell any currency pair according to the current market price in the hope to buy again later at a cheaper price. These two processes Tmanha Forex severe excitement, everyone can profit from the market regardless of whether in the case of the rise or fall. To the extent that the trader is able to predict the direction in which the market is going, he can prepare himself to take advantage of market trends.