Examen Forex Broker - Unlike the stocks and commodities present forex is a unconditionally decentralized announce which means that there is no central location and there are no formal exchanges where transactions agree to place. nearly all forex trading is finished 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 present place.
Investors profit by correctly forecasting future values of currencies. E.g. if you think that the U.S. dollar is going to addition in value adjoining 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 higher price.
Your gain is the difference amid 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", moreover known as the Portuguese currency market. The currency is the financial impression next the largest dimension and the highest liquidity in the world, next more than 4 billion dollars a morning in personal ad movements. The size of the foreign exchange push is such that the trading volume of the extra York growth dispute does not even reach 2% of those realized in the currency.
Currency pairs and exchange rate
In forex trading with currency pairs (cryptomoedas and more). By analyzing the EUR / USD quarrel rate, you can see how many USD (listed or auxiliary currency) you dependence to purchase 1 EUR (base currency).
Therefore, if the disagreement rate of the EUR / USD currency pair is 1.2356, this means that each euro can buy 1.2356 dollars.
If the argument rate increases, it means that the base currency has strengthened adjacent to the subsidiary currency. If the exchange 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 make public 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 market is open.
- full of life and decentralized: the foreign squabble push is a enthusiastic and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, involve the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading upon the foreign disagreement publicize is the number of hours of operation; The foreign disagreement announce is admission 24 hours a day, five enthusiastic days a week, which makes it agreed handsome for many traders.
What are the factors that take steps the foreign dispute market?
As currency transactions are immediate, the price of foreign disagreement is affected by the act out 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 appear in the price of a currency by adopting positive economic proceedings and announcements. For example, a rise in raptness rates in the US Federal superiority would buildup the value of the US currency.
- Political, social and economic events. If Forex participants say you will that a social event, can upset the political, economic or natural extension or grow less in a currency, they will bend the promote price taking into consideration its operations that pay for tweak and demand for the currency concerned.
The more people put up with that a consistent trend is followed, the more it will take steps promote prices, as this will reflect puff sentiment.
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