- What are the foreign currency?
Do not worry if you're not completely sure of the definition of the term "Forex" is synonymous with many other expressions which may be defined as markets foreign exchange spot price or currency exchange rates or instant or simply foreign currencies!
- The foreign exchange market (Forex) is a nonstop cash market, currencies are traded countries which, through intermediaries, of course. The purchase of foreign currency and continuously sale and at the same time via the local and global markets and increase investment traffickers or decrease in value based on currency movements. Can the foreign exchange market conditions can change at any time in response to events in real time.
- Trading in foreign currencies:
Investor goal of trading in foreign currencies and to profit from foreign currency movements. Pairs are traded in foreign currencies always. For example, the euro / US dollar exchange rate on August 26, 2003, the price was 1.0857. And also referred to this figure "of foreign currency at a price" or "price" only for short. If the investor had bought 1000 euros on that date, he would pay US $ 1085.70. And a year later, the price was 1.2083, which means that the value of the euro (the numerator of the ratio of the euro / US dollar) has increased its relationship with the US dollar. The investor can now sell the 1000 euros to receive instead of US $ 1208.30. Thus, the investor will have US $ 122.60 more than they began it since years ago. However, to determine if the investor did a good investment, one must compare this investment option with alternative investments. At least, you should compare the returns on investment returns on investment "risk-free". An example of the risk-free investment is US government bonds for the long term because there is almost no possibility of failure to repay, if the US government go bankrupt or be unable or unwilling to fulfill the commitment of religion.
- When trading in foreign currencies, trade only when you expect to increase the currency you want to buy, compared with the currency sold by the contrast value. If the value of the currency that you bought rose, you must re-sell the other currency in order to close a profit. Open trading process (also called open position) is the process of trading, where the shops to buy or sell a particular currency pair and has yet to re-sell or buy the equivalent amount to close the center.
- Exchange rate:
Because currencies are traded in pairs and are trading with each other when traded, the price at which it is trading at the exchange rate is called. The majority of currencies are traded against the US dollar (USD). And the four most actively traded currencies thus is the euro (EUR), Japanese Yen (JPY), British pound (GBP) and Swiss franc (CHF). These five currencies make up the majority of the market and are called major currencies or "Home." The intervention of some Aussie sources (AUD) also to major currencies group.
- Margin - the amount of risk by:
Require banks and / or trading service providers online guarantee to make sure that the investor can pay in the event of a loss. Called collateral and margin also known as minimum security in the foreign exchange markets. In practice, the margin is a deposit to the trader's account is intended to cover any losses in trading currencies in the future.
- Trading process directly:
Direct trading process is a simple exchange of one currency to another. Direct Price is the current market price, also called the standard price. Direct trading operations do not require immediate settlement, or payment "immediately." Settlement date, or "value date", is the second business day after the "practical date" (or "trade date"), who agree on the process between traffickers have been in it. Give a couple of days time period to confirm the deal and clearing arrangement and recording of religion and presenting credentials bank accounts in different geographic locations.