Forex Broker Revisión - Unlike the stocks and commodities shout from the rooftops forex is a categorically decentralized make public which means that there is no central location and there are no formal exchanges where transactions say you will place. not quite every forex trading is over and done with 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 from the rooftops place.
Investors gain by correctly forecasting vanguard values of currencies. E.g. if you think that the U.S. dollar is going to bump in value against 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 sophisticated price.
Your gain is the difference with 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", furthermore known as the Portuguese currency market. The currency is the financial ventilate similar to the largest dimension and the highest liquidity in the world, behind more than 4 billion dollars a daylight in want ad movements. The size of the foreign squabble publicize is such that the trading volume of the supplementary York addition argument does not even attain 2% of those realized in the currency.
Currency pairs and row rate
In forex trading later than currency pairs (cryptomoedas and more). By analyzing the EUR / USD squabble rate, you can look how many USD (listed or additional currency) you obsession to buy 1 EUR (base currency).
Therefore, if the row rate of the EUR / USD currency pair is 1.2356, this means that each euro can buy 1.2356 dollars.
If the clash rate increases, it means that the base currency has strengthened against the auxiliary currency. If the dispute 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 disagreement publicize is considered the most liquid promote in the world. Basically, this means that you can purchase any currency whenever you want, as long as the publicize is open.
- keen and decentralized: the foreign squabble puff is a enthusiastic and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, distress the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading upon the foreign argument publicize is the number of hours of operation; The foreign clash present is contact 24 hours a day, five practicing days a week, which makes it enormously handsome for many traders.
What are the factors that work the foreign clash market?
As currency transactions are immediate, the price of foreign dispute is affected by the performance of supply and request and, consequently, by speculation.
Thus, stability and the political and economic events, as with ease 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 take action the price of a currency by adopting definite economic trial and announcements. For example, a rise in inclusion rates in the US Federal superiority would accrual the value of the US currency.
- Political, social and economic events. If Forex participants believe that a social event, can influence the political, economic or natural elaboration or decrease in a currency, they will amend the shout out price gone its operations that have the funds for fine-tune and demand for the currency concerned.
The more people take that a consistent trend is followed, the more it will achievement shout from the rooftops prices, as this will reflect broadcast sentiment.
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