Friday 5 March 2010

Forex


The word "Forex":-
refers to the foreign exchange market or the global stock of foreign exchange, the abbreviation of the term economic foreign language "Foreign Exchange Market",A market extends throughout the world where the disposal of currency by several participants, such as international banks and international institutions and financial markets and individual traders.

Stock Exchange or the stock market:-Market, but they differ from other markets, it does not display do not have in most cases, goods and commodities, but the goods are sold by the real assets, but not securities or financial assets, and often these goods stocks and bonds.

Date currency market:-

Some scholars say that the Forex market due to the Babylonians in terms of its foundations and principles. In those times traders were exchanging goods for other items. When the world entered into the age of minerals, gold and silver has become one of the most heavily traded commodities. With the entry of regimes and governments that made coins, trade has become the most important minerals of economic instruments by States. Because of the magnitude of the metals market and the involvement of governments have enacted laws which reduced the traders in this market, which was do I cause the economic crisis in the U.S. twenty and thirty years of the twentieth century.
Born in 1931 the foreign exchange market or forex is known today. Despite the passage of so many years but that the word Forex is still not mean a lot to people in the world, especially for traders and businessmen, and they do not know fall under the branch of stock trading in the global economy.

Stock markets exist in all countries of the world, each with its specialization and exchange. In addition to the currency market, there are other types of exchanges such as: gold, silver, oil stocks, shares and bonds, agricultural and energy.
There are two types of stock exchanges: - direct stock exchange, stock exchanges across the networks, FX tracking in stock exchanges across the networks (through the telephone connection and Internet computer at one time among hundreds of banks around the world). This is why the magnitude of the currency market, there are hundreds of millions of dollars bought and sold every few seconds. And currency exchanges are also characterized by various indicators and technical analysis, news analysis and rapid access to the profits.

Features forex market:-

Financial analysts estimated daily volume of currency trading in the Forex market at about $ 3 trillion (3 trillion dollars a day), where hundreds of millions of dollars bought and sold every few seconds.
And are traded by buying and selling major currencies which have the basic share from operations in the forex market is the U.S. dollar (USD) the base currency and the euro (EUR) and Sterling (GBP) and Swiss franc (CHF) and Japanese Yen (JPY), Australian dollar ( AUD), Canadian Dollar (CAD) and the currencies of other Arab and foreign countries.
Unlike several markets spread in the market, the currency market is not a market of elite capable of dealing with only a few people, but lack of interest in media coverage of economic activities, trade currency to make this market away from the public. Even people who do not have experience in dealing with the Internet and computer, they can trade through telephone calls to brokerage firms.

Of trading in the currency market:-

Are buying and selling of different currencies in U.S. dollars or other currencies among themselves, which defines the currency pairs as opposed to the U.S. dollar or any currency against another currency value. The currency trading earn from trade in the stock exchanges.
Rates are large multi-currency changes, which helps to do some business operations during a single day. It is known that decreases the influence over the financial markets, which could lead to the collapse of stock or bonds. The forex market decline in the dollar (for example) means the price rise of the second currency and there is no such mention the collapse of the stock or bonds.
Forex market combining four regional markets: Australian and Asian, European and American. And continue operations where all trading days of work and the market closes on Saturday and Sunday, and the market operates around the clock 24 hours a day. And the relative calm from 20:00 until 01:00 GMT, and is attributed to the closure of the New York Stock Exchange eighth in the evening and the start of the Tokyo Stock Exchange work at one o'clock in the morning.

Of the most important features of trading in the forex market in addition to the rapid variability is margin trading, a trade deal with so-called (trade margin) which you booked a small amount from your account (1000 dollars) for purchase (100000) dollars, called the Procurement Unit (Lute) and win or lose by the movement of currency or commodity or metal which is purchased or sold him, and this type of trading (even if it looks simple) is one of the most profitable types of trading where you can earn a significant profit during the few seconds a result of economic news or raise the rate of interest and download or a natural disaster or other causes of economic and other, and important characteristics of the currency market is characteristic balance despite the fact that this seems strange. Everyone knows that the fundamental characteristic of the financial market is the sudden nosedive. However, the Forex market is different from the stock market in that it does not fall.

Tips for the novice Forex:-

1-Prepare yourself and optimism trades conducted by when convinced.
2-Do not overdo this, and the most important reactions in both the profit or loss and try to maintain your style and behavior.
3-Should learn to grasp the opportunities.
4-InterWorx and your profits can make you bankrupt.
5-Always remember you are the only person responsible for the profit and loss in trading.
6-Learn from your mistakes and the mistakes of others and Make it between your eyes even for a retrospect again.
7-Remember to analyze the market closing price each day compared to the highest and the lowest price.
8-Do not buy just because the price is low or sell just because the price high.
9-Not miss your time in remorse over lost opportunities The market exists and the opportunities present every day.

These are some tips that I liked to benefit the beginner and rolling so that there is awareness and understanding of this large market.

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