Trading Forex

What is the Forex market ?

Is the metal exchange and currency market

There is no fixed central market for currency trading, but are through spot trading

Is the market operates 24 hours a day for 5 days a week

The currency trading all over the world through the most important financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney is the market moves from country to country and from continent to continent again

Is an electronic market up between banks in the world

Is the largest market in the world in terms of the value of cash in circulation

Anyone company or country can participate in this market there are no restrictions

Historically

The foreign exchange market (FOREX) is a cash spot trading or (spot) inter-bank market created in 1971 when floating exchange rates began to materialize. This market is the arena in which the currency of one country is exchanged against those of another, and where institutions for international companies are doing.

Historically, the interbank foreign exchange market was not available to small speculators. With a previous minimum transaction size and the often stringent financial requirements, the small trader was excluded from participation in this market. But the market maker brokers today are allowed to break the large inter-bank units and offer small traders the opportunity to buy or sell a certain number of these smaller units (lots).

Liquidity

It offers opportunities for traders and the potential for a large purchase or sale so as to potential profit at any time

In the Forex market there is always a buyer and a seller

FOREX absorbs trading volumes and per trade sizes which dwarfs the capacity of any other market

On the simplest level, liquidity is a powerful attraction for any investor as it suggests the freedom to open or close a position at will 24 hours 5 day.

Once purchased, many other high yield investments are difficult to sell at will. Traders never have to worry about being "stuck" in a position because of a lack of market interest.

Currency Pairs

The currency pairs trading with each trading process you in the process of buying a particular currency and selling another currency at the same time

EUR-USD = 1.2

Exchange rate shows the number of currency units that can be purchased interview in front of the unit from the original currency or basic

This means that buy one euro is equal to US $ 1.2

short = sell the euro against the dollar buying

long = buy the euro against the dollar selling

long - short = Sale - buy

There are more than 4,000 coin in the world

The most important currencies that are traded in the currency market

And icons and titles of these currencies

Why is there no collapses in the forex market

Sometimes great heights is happening in the currency and significant declines in the currency, but no collapses, because before this rise in the currency is no decline in the currency interview her, and vice versa

So there will be one win and another loses, and vice versa, and all this because of the large liquidity in the Forex market as well as the difference in financial analysis and technical analysis and news analysis from one person to another or from one institution to another institution

Can not be a collapse in all currencies once

For it is said in the Forex currency duplex

Example high meaning that a pair of $ euro rise and fall of the dollar

Time for Trading Forex Daily

Investors and traders can trade currencies around the world, in a commercial area, 24 hours a day in the foreign exchange market today. London, Japan and New York topped the three main currency traders from traders. These currencies are traded 24 hours a day. The only time the Stop Trading currencies is Friday when the Japanese market closes. There is a window one day after Japan closes before Europe comes Monday morning to open for business.The majority of operations comes from banks, brokerage houses and investment companies. Companies that buy and sell foreign currency in the course of their business as independent brokers and currency traders, represent a small part of trading foreign exchange currencies. The Forex market will continue to develop and grow at a steady pace in more than currency traders become aware of the potential to earn foreign exchange markets and increase capital. The Forex market reaches a daily average turnover 30 times higher than any other US market.Added in training to supply and demand, the Forex market relies on the huge scope for profit potential amongst currency brokers is steadily rising. The Forex market is also using the free floating system which is considered more practical for today's foreign exchange market may experience a change in the exchange rate to about 4.8 seconds. The Forex market is taking a tremendous role in the economy of the country, after the development of connective financial centers to a unified market. After extended worldwide, the Forex market reflects the continued growth of all international activities and their country. When you consider the size of the forex market, it is important to understand that all transactions are made with a future trading broker or independent broker, can lead to more transactions. This may be due to brokering activities that work to readjust their positions.Understanding your entire portfolio and its sensitivity to the unpredictability of the market is necessary to be an effective day trader. This is especially important when trading foreign exchange currencies, because these currencies are sold in pairs and not a single pair will trade completely independently. Understanding these correlations and how they can change will help you use them to your advantage to control your exposure.Correlations DefinedThere portfolio is a result of the interdependence of currency pairs. For example, if you were to trade the pound sterling (GBP) against the Japanese yen (JPY) or GBP / JPY, then you are negotiating a derivative of the USD / JPY and GBP pairs / USD . Consequently, GBP / JPY must be somewhat correlated to one or two other currency pairs. Even so, the interdependence between these currencies will result in more than the fact that they are in pairs. Although there are currencies that will move one behind the other, other currency pairs may move in different directions often results in a more complex force. In the world of finance, the correlation is a statistical measure of the relationship between two securities.Then is the correlation coefficient varies between -1 and 1. The correlation of 1 indicates that the two currency pairs may move in the same direction at about 100% of the time. Although correlations of -1 indicates that the two currency pairs are likely to move in the opposite direction to 100% of the time. If the correlation is zero, which indicates that the relationship between the currency pairs will be completely random.Correlations are not always stable. Correlations change, as the world economic system and other factors can change on a daily basis, making the ability to follow developments very significant correlations. Today correlations may not be in line with long-term correlations between pairs of two currencies. That is why it is suggested to take a look at the last six months of follow-correlation provide a clearer perspective on the average relationship between the two currency pairs. This change is the result of a variety of reasons - the most common reason being susceptibility to commodity prices, the divergent monetary policies and the unique political and economic circumstances of a currency pair

candles stick

The importance of candles stick

In the Seventeenth century, the Japanese developed a method to analyze the price of rich contracts. This technique is called “candlestick charting. Steven Nison is credited with popularizing the candlestick chart and has become recognized as the leading authority on the interpretation of the system.

Candlesticks chart the price fluctuations of a product. A candlestick can represent any period of time. A currency trader’s software can provide charts representing anywhere from five minutes to one week per candlestick.