Articles and Forex Strategies

Came the emergence of the foreign exchange market that we know about the next day to stay away from the fixed currency exchange of the new 'floating' on the currency in early 1970. Since that time the market has grown steadily, with interest fueled by advances in technology such as telephone calls and handling of computers, of course. This has allowed for the participants more than ever to enter the market. Foreign currency is not one in the central market. Instead, it consists of a network of businesses several thousands and thousands of banks, the central government, and international banks and private companies, commercial and custom brokers. While there is no central location associated with forex trading is based on the most major business centers. And one of the most important of these as being in London and New York, Tokyo and Hong Kong, Singapore and Frankfurt. While there are a number of big players who benefit from the currency markets in trade and investment transactions and foreign exchange are also available to smaller investors. Reach agreement on the exchange was made possible by the new commercial systems are available that control transaction sizes and changes to the financial system. Has now been trading volume between the banks the amount of $ 100,000 per round divided into smaller volumes. Potential investors may now take a small control over these lots through the "influence". The amount of power you will get by the broker often rely on the experience of your business. However, usually offered to the pressure of 100:1. This means that even with a relatively small deposit of $ 1000 will be able to control the currency, the dollar exchange $ 100,000. So why do so many traders began to trade in these markets and what are the major benefits to the investor? - Easily - in the foreign exchange market is open around the clock, 24 hours a day, 5 days a week. You can put transactions in the market at any point during this period. Can execute trades through the computer via the Internet within a few second. - High liquidity - as opposed to investment securities, currency trading is very "fluid." High number of transactions in the market over time means that there is always a buyer or seller for a particular currency so you will have no problems getting your orders filled, regardless of what time of day it is. - Open market - the market is considered 'open' and 'transparent'. And currency movements dictated by the flow of news and changes in the outlook for the national economies. Can be no 'insider trading ", as this information is easily accessible to every trader from the market at the same time. - No commission costs - already built the cost of each transaction in every business and is known as "proliferation" of intermediaries. This is the difference between what can buy a pair of currencies in what can be sold. So how can you profit from the Forex? Currency trading is always in pairs - the U.S. dollar against the Japanese yen and the pound against the Euro or English. Each transaction, including the sale and purchase of currency and the other one, so if the investor believes the euro will gain against the dollar, he will sell dollars and buy euros. Currency trading always involves buying and selling currency and the other one. For this reason you will see the exchange rates are always quoted in pairs, for example the euro against the U.S. dollar (EUR / USD). If the trader believes that the expectations for the euro look more positive for the dollar, he buys euros and sell dollars. We will know this is happening, "long" the Euro against the U.S. dollar. The ability to earn profits from determining the existence of these transformations in the assessments. Continued volatility of the market offers plenty of opportunities to earn profits. You can specify these times through the use of all of the fundamental factors and technical analysis as part of trading.