Market Operating 24 hours a day
One can say that the forex market follows the sun, opening operations in Asia and Oceania being the Japanese Bags, Australian and New Zealand which involve the largest volume of operations, then move to Europe where the London Stock Exchange is covering the most volume leading the price to move to New York where the stock exchanges of Wall Street and Chicago continue with the journey. Upon closing the stock exchanges in America in New Zealand are preparing to start the day. Therefore, you can say it is a 24 hour market functioning.
The world's largest market
The current size of the Forex market is $ 3 trillion a day, and simple operators can settle a volume greater than a multinational. And forex is growing day by day due to the incorporation of new agents, who then explain:
Before the Internet only companies, banks and large customers could operate with Forex through specialized institutions. It was a market for big players only. From the late 90s with the developing of Internet trading platforms individuals have access to this market, increasing the volume of transactions at record levels, making Forex market increased global liquidity.
Relevance Linear Moving Average
In order to correct the problem of the relevance of the data, some analysts use a linear moving average relevance. In the case of a 10 day moving average, day 10 is multiplied by 10, the 9th is multiplied by 9, 8 on 8 ... until 1 which is multiplied by 1. The total is divided by the sum of the multiples (10 + 9 + 8 + 7 + .... + 1 = 55) gives 55. thus is given much more importance to the latest prices. However, this method only solves the problem of relevance unable to resolve the problem of coverage.
Forex components
Forex offers a lot of products and services such as Spot market (which operate at the current price), futures (which operates with an estimate of future price, usually 3, 6 or 12 months), options (insurance buy or sell at a fixed price), etc.
The main product are the currencies of major countries or economic conglomerates. The following table shows the major currencies:
Symbol
Country or Community
First name
Nickname
USD
U.S
Dollar
Buck
EUR
European Community
EUR
Fiber
JPY
Japan
And in
And in
GBP
Britain
Pound sterling
Cable
CHF
Switzerland
Frank
Swissy
CAD
Canada
Dollar
loonie
AUD
Australia
Dollar
Aussie
Forex Trading Benefits
No commissions: Forex Trading no fees to open or close positions, no government fees, no brokerage. Forex brokers earn through something known as SPREAD is the difference between the buying and selling prices.
Without intermediaries: Due to the automation of processes, operations Forex market are fully snapshots price without intermediaries.
Variety of lots: To buy and sell currencies a certain standard amount (1000 units, 10,000 units, etc.) is required. there are a variety of lots in the market to suit all budgets ..
Low transaction costs: Generally, in financial markets, such as the Securities (stock) and Bonds, there are transactions costs that can roam between 1% to 0.1%. While in Forex, transaction costs can be up to 0.7% (considering that value as very expensive).
24 hours of operation: Continuously, untimed tickets, is a market that operates 24 hours a day and 5 days a week.
No market is owner: Due to the size of the market, it is impossible that a single operator can influence the price, including banks, and even central banks.
Leverage: In Forex, usually operating with leverage, allowing large returns (including losses) against small fluctuations in the price of the currency. In Forex courses later we will see all about leverage (Leverage).
High Liquidity: Because it is the world's largest market, liquidity and price validity is not related to any other market. Therefore it is possible to enter and exit positions all the time, without delay and completely instant.
What and how much is needed to start trading Forex?
You need to trade Forex today is a computer with Internet ... there are even trading platforms that do not require installation, so you can say that it is only essential Internet.
You need to invest depends on the needs and ambitions of each person. Today there are mini and micro accounts with up to about $ 200 dollars can start trading, there are even accounts up to $ 50 dollars.
However, to have a service and an adequate space operation, we recommend starting with a close to 1000 dollars capital, if you will receive VIP service, please open accounts 10,000 dollars.
How does the Forex market work?
In the Forex Market (Forex) you buy one currency for another, and works like any other financier market. If the currency you purchased goes up, it would be with profit and if it had sold the same currency would be missing.
Examples of making money by buying Euros:
You buy 10,000 Euros to 1.5500 dollars: Has paid 15,500 dollars for 10,000 Euros.
A week later the Euro has risen to 1.5700 and sell their euros for dollars: Has received 15,700 dollars, therefore has earned 200 dollars in total.
Price
Operation
Quantity Euros
Quantity Dollars
Initial: 1.5500
Purchase
+10000
- 15,500
Final: 1.5700
Sale
-10000
+ 15.700
Total
0
200
Gain TOTAL: 200 Dollars