Forex 6mm | Forex Strategy
What is Forex?
Forex is the acronym for "currency market", plus known as the Portuguese currency market. The currency is the financial look when the largest dimension and the highest liquidity in the world, subsequent to more than 4 billion dollars a hours of daylight in personal ad movements. The size of the foreign quarrel puff is such that the trading volume of the extra York accrual argument does not even attain 2% of those realized in the currency.
Currency pairs and argument rate
In forex trading afterward currency pairs (cryptomoedas and more). By analyzing the EUR / USD row rate, you can see how many USD (listed or subsidiary currency) you need to purchase 1 EUR (base currency).
Therefore, if the exchange rate of the EUR / USD currency pair is 1.2356, this means that each euro can buy 1.2356 dollars.
If the argument rate increases, it means that the base currency has strengthened against the subsidiary currency. If the difference of opinion 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 squabble broadcast is considered the most liquid market in the world. Basically, this means that you can purchase any currency whenever you want, as long as the broadcast is open.
- effective and decentralized: the foreign squabble market is a on the go and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, upset the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading upon the foreign dispute publicize is the number of hours of operation; The foreign difference of opinion make known is admittance 24 hours a day, five in action days a week, which makes it certainly handsome for many traders.
What are the factors that performance the foreign exchange market?
As currency transactions are immediate, the price of foreign quarrel is affected by the put-on of supply and demand and, consequently, by speculation.
Thus, stability and the embassy and economic events, as without difficulty 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 con the price of a currency by adopting positive economic events and announcements. For example, a rise in concentration rates in the US Federal superiority would growth the value of the US currency.
- Political, social and economic events. If Forex participants agree to that a social event, can pretend to have the political, economic or natural strengthening or decrease in a currency, they will correct the make known price past its operations that have enough money change and request for the currency concerned.
The more people give a positive response that a consistent trend is followed, the more it will produce a result push prices, as this will reflect push sentiment.
Recent major events such as Brexit or the US elections directly and rapidly influenced the value of currencies.
Reports of economic and social organizations. Debt analysis subsequent to the IMF, large loans from the EU or the health of the industry in a supreme country (especially the big powers), as well as data upon unemployment and inflation, still manage to pay for a more translucent vision of what might happen upon the markets and in the economy, appropriately it along with has a rather accentuated weight under the currency.
What should I realize in the same way as I trade in the currency?
Forex Trading always involves trading with a currency pair. For example, if you think the pound sterling (GBP) will value neighboring the dollar, you should purchase the GBP / USD currency pair.
If, upon the contrary, we expect a devaluation, that is to tell that the dollar will strengthen, he will have to sell the currency pair he has.
The first charge is called the buy position, which means that the trader wants to buy the base currency (GBP) and sell the subsidiary currency. In the second, the operator would contact a sales face to sell the pound sterling (GBP), the base currency.
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