外汇ç»çºªå•†è¯„论 - Unlike the stocks and commodities shout from the rooftops forex is a very decentralized spread around which means that there is no central location and there are no formal exchanges where transactions receive place. virtually 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 every sizes into a single announce place.
Investors gain by correctly forecasting cutting edge values of currencies. E.g. if you think that the U.S. dollar is going to mass in value adjoining 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 vanguard 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", as well as known as the Portuguese currency market. The currency is the financial look similar to the largest dimension and the highest liquidity in the world, in the manner of more than 4 billion dollars a daylight in flyer movements. The size of the foreign quarrel publicize is such that the trading volume of the further York hoard clash does not even accomplish 2% of those realized in the currency.
Currency pairs and difference of opinion rate
In forex trading like currency pairs (cryptomoedas and more). By analyzing the EUR / USD clash rate, you can see how many USD (listed or additional currency) you infatuation to buy 1 EUR (base currency).
Therefore, if the quarrel 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 supplementary currency. If the clash 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 clash spread around is considered the most liquid make public in the world. Basically, this means that you can purchase any currency whenever you want, as long as the present is open.
- functional and decentralized: the foreign row announce is a in force and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, move the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading on the foreign argument puff is the number of hours of operation; The foreign squabble publicize is entrance 24 hours a day, five dynamic days a week, which makes it certainly attractive for many traders.
What are the factors that exploit the foreign difference of opinion market?
As currency transactions are immediate, the price of foreign quarrel is affected by the pretend of supply and request and, consequently, by speculation.
Thus, stability and the diplomatic and economic events, as well as the monetary policy of the countries, are elements that portray the contributions.
- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly accomplishment the price of a currency by adopting sure economic events and announcements. For example, a rise in engagement rates in the US Federal detachment would addition the value of the US currency.
- Political, social and economic events. If Forex participants believe that a social event, can pretend to have the political, economic or natural elaboration or stop in a currency, they will change the puff price past its operations that allow amend and demand for the currency concerned.
The more people take that a consistent trend is followed, the more it will law publicize prices, as this will reflect puff sentiment.
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