Global stock of foreign currency:
The word "forex" means the foreign exchange market or the global stock of foreign exchange in short the corresponding word "Foreign Exchange" in the English language. And is speculative in this market by buying and selling major currencies, which possess the basic share from operations in the forex market is the U.S. dollar USD)) the base currency and the euro (EUR) and pound sterling (GBP) and Swiss franc (CHF) and Japanese Yen (JPY) .
And are buying and selling of those currencies in U.S. dollars or other currencies, among them the so-called currency pairs, and so against the U.S. dollar or any currency against another currency value. And is a profitable speculation in the currency type of trade in stock exchanges, and also the most risky, because of rapid fluctuations in the currency of the upward trend to trend downward, or vice versa. In addition to the currency market there are other types of stock exchanges are: gold, silver, Petroleum Exchange, shares and bonds, agricultural and energy. The stock exchange characterized by various indicators and technical analysis, news analysis and rapid access to profits.
Daily volume of currency trading in the Forex market to reach $ 3 trillion. For comparison, we mention that the size of the activities of the New York Stock Exchange does not exceed $ 300 billion per day, it was necessary to half of the New York Stock Exchange to reach the size of the currency market.
And I have a bond market and sell future Future (FUTURE) and lack of a fundamental difference compared to the forex market: they stop working at the end of the day and resume work with the next morning. And it is natural that if you are trading in the markets of Germany, for example, and there in America events with significant impact on the market, you may find the market at the beginning of his work is significantly different than expected.
The forex market is not a market in the literal sense of the word, as it has no center and no place has a certain exercise a trade. The trading exercised by contacting the telephone exchange and Internet computer at a time, one of hundreds of banks around the world. Hundreds of millions of dollars are sold and purchased every few seconds, and this is the so-called currency trading.
Forex market combining four regional markets: Australian and Asian, European and American. And continue operations where all trading days of work, and the market operates around the clock, or 24 hours a day. And notes the relative calm from 20:00 until 01:00 GMT, and is attributed to close 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.
It is well known that the large declines impact on the financial markets, which could lead to the collapse of the stock or bonds. The forex market decline in U.S. dollar (for example) means that the price rise of the second currency and there is no collapse of markets such as stocks or bonds. . .
It was established forex market (FOREX) for the financial transactions between banks in 1971 when it turned transactions in world trade from the use of fixed values of the currencies to float values. This would be the result of group financial transactions carried out by agents of the financial markets to convert a certain amount of money in the currency of one country to another country's currency value of pre-agreed to a certain date. And determines the currency exchange rate designated for other currency simply: supply and demand for conversion approved by the parties.
The volume of operations in the global financial market in steady growth. Associated with this great development in world trade and to lift the ban on the currencies in many countries. The 80% of all transactions is a speculation in the currency market aimed at obtaining profits from exchange rate differences. And attract these speculations by many participants, both financial organizations or individual investors.
As a result of the tremendous development in communications technology in the last two decades, this has changed in the market itself to a large degree. That the profession currency trader, which was surrounded by an aura of secrecy has become almost unanimous. The trade in currencies, which until recently was limited to big monopolist banks, has become accessible to everyone as a result of electronic commerce. Even the largest banks in favor of electronic trading as well as to personal transactions between the parties.
The objective of the Forex market as an area for the use of the possibilities of a person's financial, mental and psychological blow is not luck. Some may succeed in this, but not for long. The key advantage of the currency market is that it's a place for the success of using intellectual potential.
A significant feature of the currency market is the property of the balance, although this seems strange. Everyone knows that the fundamental characteristic of the financial market is the sudden decline. However, the Forex market differs from the stock market in that it does not fall. When you lose stock value of this collapse. If the dollar falls, for example, that only means that other currency has become stronger - an example of the Japanese yen, which is now in a few months of 1998 the strongest quarter for almost the dollar. Have reached the decline of the dollar for some days in that period of tens of per cent. Although this did not happen to fall in the market and transactions continued as usual. In this limited stability of the currency market and the associated work. Currency is a commodity full liquidity can be purchased or sold at all times.
Currency market works all the time from non-stop is not linked to hours of work assigned to the Stock Exchange, the transactions between banks located in different parts of the globe. The changes in currency rates are significantly and several times be sufficient to carry out several operations in every day. If you have a proven trading technology and secure you can make it work area does not compare the effectiveness of its effectiveness in any other area. Therefore, we find the major banks acquire the most expensive equipment and used dozens of specialist trading in the various sections of the currency market.
The expenditure to engage in this work is not great. In fact, the business needs in this area of study and acquisition of initial computer purchase information service and the value of insurance all together does not exceed a few thousand dollars and this amount can not invest seriously in any other field. With a huge supply of services in this area easy to find an experienced agent in the currency market. What is left after that depends on the shops. We conclude from this that the success in this area depends on you personally more than any other work.
The main thing for success in this market is not the size of the money entering the market as it is a strong focus at the market study, and understanding Mikhanykyate and wishes of the participants. This results in the continuous improvement of the way you work and organize your trading. This did not happen that someone has succeeded in the currency market was adopted on the capital only.
Advantages of trading in the stock market of the World Bank:
• Liquidity: the market is based on the large sums of money are not limited to able to open and close any specific transaction prices of currencies at the moment. I have a high degree of liquidity huge attraction for any investor as it gives him the freedom to open and close any deal and any size.
• Effectiveness: the proportion of the work of the market around the time it is not the traffickers in the market waiting to interact with a specific event, as the case may be in the stock market and other markets.
• flexibility of transactions: trading system is flexible in the market as it can open the deal for a limited time by former investor desire thing that can be planned in advance of his coming.
• Cost: not for the Forex market has traditionally expenses, any commission or any other expenses, except expenses, - or profits - the difference between the bid and the ask price (BID / ASK).
• standard rates: the proportion of the high degree of liquidity in the market, we find that the vast majority of sales operations can be carried out at a flat rate, the one which avoids the problem of investor volatility which is offset in the market for selling the future or the stock market and other exchange markets where they are sold at a particular time and a specified price only a limited amount of currency.
• directional market: that the movement of any of the currencies market, a particular direction can be followed by a period of time. And give each a specific currency price change with time only special thing that gives the investor the possibility of dealing in the market with tact.
Size of the margin:
Located in the Forex market the size of the loan eponymous margin or shoulder only agreement between the client and that the bank or brokerage firm, which gives the director of the market and is usually 1:100 to pay any customer a deposit of $ 1000 can make a deal worth 100 thousand dollars. That the use of this large margin with currency fluctuations make this profitable market, but also great risks.
Key elements in the foreign exchange market:
1 - international banks:
It is no secret to anyone that the banks are the largest and most important players in the arena of global currency trading. They are conducting thousands of transactions daily around the clock, which they exchange among themselves, or with a broker and private investors, through their Permanent Representatives in this area. It is obvious also that the greatest influence in moving the market and identify and exclusively in the hands of top global banks, as their transactions amounting to billions of dollars daily.
2 - Central Banks:
Central banks are transactions in this market commissioned by the government, a move in most cases to influence the course of the direction taken by their own currencies, according to the interest that is consistent with financial policies, and therefore protect their economic interests.
3 - Investment Funds:
It was due mostly to institutional investors or pension funds or insurance companies, interfere in the market, according to the dictates of their interests. Recall the most famous of these funds, "Tom Kwan," a fund, which is owned by renowned investor George Soros, who wrote a history in this area and still is one of the largest investors who are able to extend influence in the course of the market.
4 - Forex Trading clients:
These are the important permanent link between buyers and sellers. In other words, they move on the one hand as intermediaries between the various banks, on the other hand between the banks and ordinary investors. For their work and see them blow for this commission or the so-called Brockerj.
5 - Independent Persons:
These are ordinary people who make a huge daily turnover of currency to finance their trips planned, or to secure access to their salary, or retirement, etc..
Today, after the revolution that introduced the Internet on the operations of global communications, and after successive collapses in the stock markets, and under the influence of the atmosphere Haze, taking place in bond markets global treasury, there is growing little by little the role of independent dealers who have modest amounts of money in buying and selling daily fast, "Dai Trader ". Growing influence and grow in the foreign exchange market, so that many of them are now working in this work, and spend their days in front of computers bought and sold each according to his vision of the course of the day's events.
Trading Around the Clock:
As mentioned above, extends the work of the currency markets over the past 24 hours. In the calendar today, the most obvious, start first in the Far East, in New Zealand, then moved to the role of Sydney in Australia, then to Tokyo, and then to Hong Kong, Singapore, and Moscow, Frankfurt, London, and finally New York, money Angeles.
Begin the work of foreign currency dealer in Western Europe, for example, at half past seven in the morning. In the eighth work in the draw. Need to dedicate the first half hour each day to analyze market conditions, and study the developments of the day both the substantive core, and technical art, are then available on the new daily newspapers, or the exchange of information and leaks coming into the market and that will influence the course of the market. Thus, a clear idea, which created today's program, which must be applied and modified if the need arises to be the work of the day.
Definitions in the international exchange of currencies:
Market definition:
The old definition or common: it is the place to go people to buy their needs of various goods and services.
Economic definition: is a collection of buyers and a group of vendors interested in buying and selling a commodity or service.
A historical perspective on the stock exchange:
The origin of the word Stock Exchange to the name of the family van der Borsn Belgian who was working in the field of banking, which was her hotel city of Bruges meeting place for local merchants in the fifteenth century, where he became a symbol of the capital market and exchange of goods. The publication of what looks like a price list of stock exchange throughout the trading period for the first time in 1592 City Anffers. In France, have stabilized the exchange in Paris at the Palais des Bronyar proportion to the engineer who drew the charts in 1808. In the United States of America began Exchange Street Wall Street in New York City mid-fourth century century.
What is the stock market?
Stock market is the undisputed place to exchange, in which everything can be exchanged. So it is buying and selling food (such as coffee, rice and corn ...), and raw materials (such as petroleum, cotton, copper, ...), and securities (such as bonds, equities and obligations ...), and currencies (such as the dollar and the yen and the euro ...) , everything is interchangeable.
How does the stock market?
DME is working on the convergence of two people or two parties: the seller and the buyer. These parties do not know each other and they can identify with each other. And so can not share a vendor to know the person who buys this stock. The buyer is a professional or skilled contributor simple. Everything is possible. Affected by the market in the stock market directly the number of buyers (demand) and the number of sellers (supply). Faced between supply and demand results in equilibrium price. In the stock market equilibrium price changes several times per minute. When the number of bidders (sellers) is higher than the number of applicants (buyers) the price is moving downward, and vice versa.
About the Event for financial markets:
Became the subject of financial markets has great interest in the developed and developing countries alike and that what these markets play an important role in mobilizing national savings and direct investment in the channels that support the national economy and increase the rates of well-being of its members.
Knows that the financial market is a system whereby a combination of buyers and sellers for a particular type of investment instruments, since they can so investors are buying and selling a number of financial instruments within the market, either through brokers or companies working in this area. But with the growth of networks and means of communication, this has led to minimize the importance of the presence at the market, and thus allowed the handling of out of the market through brokerage firms located in different countries
And elements of financial markets made up of three elements
Money market, which the banking system in which the primary role.
Capital market, which consists of investment banks and insurance companies.
Stock market where it is dealing in securities in which instruments of stocks and bonds issued by companies, banks or governments or other institutions and public bodies and shall be open for trading.
Types of international capital markets:
Real-time market
The process of payment and receipt immediately, a buyer has the financial instrument purchased directly.
Future market
The process of payment and receipt dimension over a period of time to be determined and agreed upon between the seller and the buyer.
Market option rights
The buyer the right to perform the operation or failure to perform after the agreed period for the implementation of the process.
CFD CFD:
The agreements to buy or sell. Gives traders ability to trade in various financial instruments (such as stocks, currencies, stock indices, energy contracts, goods, and other tools of the global financial) and take advantage of volatility in the prices of these instruments, without the need to acquire them effectively, and adopt CFD system margin ( margin) directly.
The trading operations on contracts for differences (CFD) is one of the more strategies used in global financial markets, characterized by doubling the quantities sold and purchased many times as much capital available, giving full opportunity for investors to double their profits business when you check the investment outlook of each financial instrument.
The introduction of margin cash "margin":
The work-based margin of strategies and widespread in the world of finance and investment, this system is working to increase the purchasing power of the investor and reduces the financial burden required to enter into trading operations in the global market.
The system margin (margin) depends directly on the leverage of the investor's account, and in the following example will clarify the general idea of the margin system, God willing
For example, if one of the investors to open an account margin of $ 5000 and the leverage of this account is 1:100, it means that the purchasing power of the investor will double to reach $ 500,000 bears, only the $ 5,000 in the account and will not bear any additional financial burden .
And the sense more clearly, if an investor is willing to buy or sell 100,000 €, for example, would need only $ 1000 Kmarzin to be able to trade at $ 100,000.
The market's trading III:
The technology revolution in the boundless field of communications and computer networks has made the world more closely, and influenced many aspects of contemporary life
And of course, was the area of financial investments for the largest share of this technological revolution, in terms of flexibility and speed
Today, can any investor in any geographical area in this world that carries out the sale and purchase of any investment vehicle is selected, through a normal telephone or mobile telephone or via the World Wide Web (Internet), only has to contact one of financial intermediaries for the implementation of orders investor directly, without having to go personally known to global stock markets. Financial Vallostae have a diversified investment portfolios and comprehensive covering all the wishes of investors.
The trading through the market or the third is the most popular and common investment in the world. The process of sale and purchase contracts (C P D) is between the broker and the investor are directly without having to go through the complexities and transactions associated with such operations
The largest global computer networks for trading on the market, the third since 1998, is a network of NASDAQ, there are plenty of companies that met the requirements for inclusion in the primary and secondary markets, still prefer to be traded in the market the third because of its high flexibility.
Data of different market:
To enable the investor to minimize the risks surrounding the trading and investment in the global market, he must reads and examines the economic data carefully and cautiously
The economic data are usually in two forms, the basic information of specialized news expected, and how the results change for the outlook for both global news market affect investment. As well as technical information, studies and analysis are available for graphs.
Determine the entry point in the process of trading:
The identification of points or the price of entering into an investment, is one of the elements of successful trading in the global market, and to determine this point, investor should be familiar with a broad and adequate to all the background reports, available technology, before the adoption of his investment decision to enter the market at a certain point. When the price reaches the point desired, that the investor can enter into the process of trading through the trading system directly, as well as using various trading orders.
Determine the exit point of the process of trading:
Of course, as is the case in determining the point or the entry price to invest in particular, the determination of the point of exit from the investment have the same importance, it should be for an investor to be familiar with a broad and adequate to all the background reports, available technology, before the adoption of his decision to venture out of the market when a certain point
The result is a process out of an investment, profit or loss, and in both cases, the investor should be committed to the point that he had identified out of the process.
Stop-loss orders:
The stop-loss orders of the most important mechanisms for risk management of trading in global markets. Where the investor can, through these commands that the stop loss for a specific position when the price reaches the world market to point out that he had identified in advance.
Orders to take profits:
Take-profit orders are effective mechanisms in the management of successful investment. Where can an investor through this command that is taking the profit center for certain when the price reaches the world market to point out that he had identified in advance.
Capital User:
The process of using Margin trading is a risky operation, which is used times the original capital. It is advisable to always using a ratio of not more than 30% of the capital in the trading operations by using the Margin
