What you should know about Forex?
What is Forex?
Market Forex is the largest financial market in the world, the daily average trading volume of approximately $5.3 billion. Performance Forex trading for the purchase of a coin as to the sale of another currency. Floating exchange rate for each currency in the world, and when the transaction occurs with currency pairs, such as the euro/dollar and dollar/yen.
How is set the prices of Forex?
Forex prices are determined by a variety of economic and political factors, the most important factors: the interest rates, inflation, and political stability. The Government sometimes participates in that you influence the monetary value of the action, putting on the market during much of the value of their currencies lower, or buy a lot of money to make it worthy of its recovery. This is known as the Central Bank intervention.
Factors, including are some large market orders, they can cause volatility in currency prices. However, the forex market is the enormous volume of transactions that a person cannot control the movements of the market at any time.
What is the margin?
Margin requirements are used to support the open position. This is not a payment or transaction costs, only a part of the account will be used as margin requirements.
Margin trade (leverage) is an of the main features of the market forex, what you allow create so many accounts of funds.
Margin commercial business experience can be both positive and negative, due to losses and gains can magnify considerably.
Who are the participants in the Forex market?
Market Forex is also known as “market interbank” because in the currency foreign market has included the banks central, banks commercial, banks of investment, each bank dominated. Now, however, the proportion of the market participation of other players instead, including corporations multinational, them administrators of money global, operators reported, money international brokers, future and options of traders and investors.
Major currencies currency market trading
He market of currencies more negotiated, or them coins more active as the currency of the countries have a rule of a Government stable, inflation low and of good reputation them banks centrally. Several currencies in the forex market trading now account for 85% of daily trading volume: $ (USD), Japanese yen (JPY), Euro (EUR), pound (GBP) British, Swiss franc (CHF), Canadian dollar (CAD) and the Australian dollar (AUD).
Do I need lots of money for Forex trading?
Not. The ADS allows the customers the operations of high leverage. This means that investors can execute an initial deposit of $200 of agreement of $100,000. It should be remembered that this operation leveraged allows them, customers, to maximize the victory for having benefits, but also runs the risk so high.
Forex market Mall
Forex trading is not the shopping bag. The forex market is the “interbank” market “OTC” or due to exchange operations carried out by the network is done by phone or computer.