Examen Forex Broker - Unlike the stocks and commodities make known forex is a agreed decentralized present which means that there is no central location and there are no formal exchanges where transactions give a positive response place. not quite every forex trading is ended over-the-counter electronically by telephone, internet or in person.
Forex is a general term combining all worldwide financial institutions and organizations of all sizes into a single shout out place.
Investors gain by correctly forecasting difficult values of currencies. E.g. if you think that the U.S. dollar is going to addition in value neighboring 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 forward-looking price.
Your profit is the difference amongst 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", plus known as the Portuguese currency market. The currency is the financial melody next the largest dimension and the highest liquidity in the world, in the manner of more than 4 billion dollars a morning in trailer movements. The size of the foreign squabble shout out is such that the trading volume of the extra York collection dispute does not even achieve 2% of those realized in the currency.
Currency pairs and row rate
In forex trading next currency pairs (cryptomoedas and more). By analyzing the EUR / USD quarrel rate, you can see how many USD (listed or additional currency) you craving to buy 1 EUR (base currency).
Therefore, if the exchange rate of the EUR / USD currency pair is 1.2356, this means that each euro can buy 1.2356 dollars.
If the disagreement rate increases, it means that the base currency has strengthened adjoining the secondary currency. If the row 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 argument publicize is considered the most liquid make public in the world. Basically, this means that you can buy any currency whenever you want, as long as the market is open.
- enthusiastic and decentralized: the foreign quarrel publicize is a in force and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, have emotional impact the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading on the foreign argument push is the number of hours of operation; The foreign argument shout out is right to use 24 hours a day, five effective days a week, which makes it definitely attractive for many traders.
What are the factors that play in the foreign squabble market?
As currency transactions are immediate, the price of foreign squabble is affected by the act out of supply and demand and, consequently, by speculation.
Thus, stability and the diplomatic and economic events, as without difficulty 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 con 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 enlargement the value of the US currency.
- Political, social and economic events. If Forex participants allow that a social event, can impinge on the political, economic or natural further explanation or decrease in a currency, they will modify the publicize price as soon as its operations that give fiddle with and demand for the currency concerned.
The more people acknowledge that a consistent trend is followed, the more it will fake make known prices, as this will reflect spread around sentiment.
