Forex 101: earn money through Forex Trading - hosting

Forex 101: earn money through Forex Trading

For those unfamiliar with the term, the Forex (foreign exchange market), refers to the international exchange market, which is the buying and selling currencies. The foreign exchange market that we see today its introduction in 1970, while the adoption of freedom of exchange rates and floating currencies. In such an environment, the only participants in this market are have the right to determine the price of any currency against the other, depending on the demand and supply of these currency levels.

Forex to end what is considered a unique market as a result of a number of reasons. First it is one of the minority markets in which we can say that there are no external control over the market as you can not manipulate it. It is also the most liquid market on the world level with a trading range between a trillion and a trillion and a half dollars a day. With this giant amounts that are moving rapidly, it is axiomatic that no investor will have the ability to influence the price of a strong single currency. Thus, the liquidity of the market means that unlike some of the shares traded, the traders can open and close their financial positions within a few seconds because the buyers and sellers and will always be present in abundance.

One of the other unique features of the Forex market is the difference between the participants. Investors have different justifications to enter the forex market, some of them are long-term investors for hedging purposes while others use credit enormous possibilities to search for big profits in the short term. Interestingly, here's the thing is that unlike large-cap stocks, which are usually attractive only to investors in the long term, the combination of ongoing volatility somewhat too small in currency rates create an attractive environment for investors who hold a wide variety of trading strategies.

How the forex market works

Trading in the forex market does not have a central place in one of the stock exchanges such as New York, and then they occur all over the world through telecommunications. Trade available on twenty-four hour a day, from Sunday afternoon until Monday afternoon (00:00 GMT on Monday to 10:00 pm on Friday). And then we can say that there are always traders are pricing in the majors any timing or any time zone around the world. After that the investor determines what currency they wish to buy them, it performs through these dealers (some of them can be accessed on the Internet). It is very common for investors to do speculation on the currency rates by obtaining a credit line, (which is available for those who have little money Raeads $ K500), and then they strongly support the likelihood of making a profit and also loss. This is called trading margin.

Margin trading

Margin trading refers to trading simply by using the capital of the borrower. The application of this type of trade based on the fact that forex investment can be carried out without a large amount of money the truth. This allows investors to trade without the need for large amounts of money and subsequent costs of conversion and then they can open the large trading centers using smaller than the actual capital amounts. And then the one can do relatively large transactions quickly and cheaply by using a small amount of seed capital. Margin trading in the Forex market is divided into Otat. "The term" Lott "an estimated one hundred thousand US dollars, the amount that can be obtained to deposit an amount not to exceed 0.5%, or $ 500.

For example: You believe that the market signals indicate on the premise that the British pound will move upwards against the US dollar. Then you are buying a lot of pounds a margin of 1% when the price 1.49889 and then wait while the rise in the pound's exchange rate. At some point in the future, your expectations come true and then you decide to sell. You close the trading center at 1.5050 and then be then it has gained 61 points, or nearly $ 405. And then Using an initial investment of up to a thousand dollars, I managed to achieve more than 40% of the capital as dividends. This is just an example on how to change the exchange rates in the forex market, but, for example, the average daily range of motion Eurodollar ranges between (70 to 100 points)

When it decided to close the trading center, the amount of the deposit is returned to your account are then made a profit and loss accounts and after determining neither be added or deducted from the account depending on the circumstances.

Investment strategies: technical analysis and fundamental analysis

Co two strategies in the field of forex trading are technical analysis and fundamental analysis. Most traders with small or medium-sized in the financial markets using technical analysis. This type of analysis starts from the assumption that all information about a particular currency can be found in a series of price Hence we can say that all the factors that had an impact on the price has been taken into account by the market and then was reversed in the current price level. Basically, investors quality that they use this kind of analysis as the basis for their investments depend on three key assumptions are: that the price movements take into account all the factors, and that price movements are not meaningful and linked directly to these events, and that history repeats itself, rolling the Technical analysis uses a look to the highest and the lowest levels of the price of a currency as well as the opening and closing prices and transaction volumes. Here the investor does not try to overcome the market or even the expected trends in the long term, but in a simple look at what has happened to that currency in the recent past and is expected to be small fluctuations in general will continue as it was before.