About Forex Trading you should know

About Forex Trading you should know

Do you know investing trading forex? Forex trading is not the same you know with buy and sell forex (foreign exchange) or buy and sell foreign currency. Forex trading can be a shortcut to the rich and could also be a shortcut to become bankrupt. So be careful!
Get To Know The Forex World
Forex is an abbreviation of foreign exchange which means the exchange of currencies to each other (foreign exchange currency). Forex market is or where the currency is traded. The forex market is a market which is the largest and most liquid which according to BIS (Bank of International Settlements), the average turnover per month April 2016 is more than 5 trillion u.s. dollars. One reason for the magnitude of the financial markets is due to foreign currency needs are high. The foreign currency needed to buy and sell running from one country to another. For example, you can't do transactions in Thailand by using Rupiah, the Baht currency or vice versa cannot be used for transactions in the country of Indonesia.

In addition, the forex market is the most active; open 24 hours a day and five and a half days a week. The forex market is not trading at the central market but OTC (over-the-counter) electronically, in which all transactions occur based on a computer network between brokers from all over the world. The forex market is traded across financial centers around the world, this means with the time zone.
Who is the forex market?
The Forex market has diverse purposes, there are only exchange currency for private or business purposes; multinational companies as examples. There is also a price difference profit from buying and selling, by way of predicting the movement of currency values. Usually, market participants such as this, understand and have any relevant information that has not been an anticipated market.

Advantages and disadvantages of forex
One of the advantages that already covered is the volatility factor, the volume up to a global market. In addition to these advantages, the forex market is also offering low margins and high leverage. The Commission is given to any forex brokers tend to be lower than a stockbroker.

One of the losses in the forex market is a high income can turn into huge losses quickly. This is because the large number of players ‘as well as the amount of money traded in the forex market can make the players respond quickly all the information on the market so that there will be significant movement in the value of the currency.

Forex trading
Forex trading is the trading of foreign currencies, on this trade, there is the process of selling to buy the currency difference. This activity occurred in the market forex (foreign exchange market). Forex trading is a very easy transaction done because you need only a computer and the internet.

In forex trading, you can buy or sell a currency pair, or you can buy a derivative that predicts the movement of a currency pair specifically.

Foreign currency exchange has taken place in history. The era of commodity exchanges occurs from country to countries, such as the skin or spice gold with rice. One foreign exchange trader which is famous in the United States is Alex. Brown & Sons, circa 1850.

Broadly speaking, the evolution of the forex market is divided into 2 periods, starting with the fixed exchange rate period (the period of the gold standard of world war 1980-1914, 1 1919-1939, and the Bretton Woods period 1946-1971). In this period, forex is not too attracted attention because its value has been set by the Government.

After the Bretton Woods (1971 to present), all movements in the exchange rate of foreign currency completely handed over on market mechanisms. With this system, the forex market is evolving into a market with the greatest trading volume and very active.

The currency on the forex market
The currency on the forex market known as ' symbols ' such as the £ symbol is known in Rupiah. Typically this currency pair, meaning that there are two currency symbol from the different countries listed, which is the value of a currency relative to a single currency with his partner. As an example:

USD/JPY = 105.6

USD/JPY currency pair is in this example, the writing like this means 1 United States dollar (base currency) can be exchanged for yen Japan 105.6.

Most forex traders are focusing on the difference between the 7 following a foreign exchange pair EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, NZD/USD. This allows the foreign exchange traders who need only pay attention to macroeconomic conditions in the United States, 8 countries, Australia, Europe, Japan, United Kingdom, Canada, New Zealand, and Switzerland.

Forex trading strategies
In the beginning, forex trading can only be done by international banks or financial institutions, but the sophistication of the technology has enabled small market participants to take advantage of trading forex. Basically, forex traders to take advantage of the forex market speculation. Speculators get information from the economic and political situation of a country to estimate the value of a country's currency.

Forex move to follow the market conditions and macroeconomic conditions globally. You need to have an analysis of market trends in order to have an overview of the movement of currency values. These fluctuations are then exploited for profit.

All kinds of investment require a healthy financial condition, compute the ratio of your financial health, whether there is a sufficient allocation of funds to be invested. If Yes, you can choose option trading forex as an initial step. If you are confused by the process, there is no harm to contact a professional such as a broker to help you. Good luck.

Before Trading Forex You Need To
One thing we need to underline and line chart Forex Trading is a type of trading with high leverage (high leverage). Trading Forex belongs to the products of the derivatives, which are sophisticated (sophisticated). Leverage allows us to greater money trading with small capital. However this leverage has 2 sides, i.e. you can profit big and could lose big. Prior to trading forex, make sure you learn first how to forex trading, read books, follow seminars and try with leverage (leverage). If you've been trading forex in the right way, the expected profit will also follow.

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