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What is Forex?

Published on: Apr 18 2015 by admin

What is Forex?

 

What is Forex?

What is Forex?


Perhaps you may have heard about Forex before, but you do not know exactly what it means. Forex is an abbreviation for foreign exchange – so Vttdaol foreign currency is an investment in, or speculation on the exchange rate or the rate of the national currency. Quite an investor trading stocks and commodities, government bonds or corporate bonds, the investor can also speculation that being familiar with the fluctuations in foreign exchange rates.
Global Forex markets consisted of currencies of each country, and are traded 24 hours a day, 5 days per week. Forex traders can work from anywhere in the world, even from home. More active are the times, which is a day between 13:00 and 17:00 GMT GMT times the US market opening and closing of the European market.


Prices move up and down very quickly during this period, which creates opportunities, and risks.


Forex Basics is not complicated: you buy a currency when the price is low, and sell when the price becomes high and take a profit. You can also make a profit by selling high price and buy low price, this is called the sale. It takes time and practice to learn how to predict fluctuations in currency values ​​and to become successful in the field of forex trading.


Imkm for many of the indicators that affect the price of a certain currency with respect to its value against other currencies – from the national economic outlook and access to political changes, successful Forex trader learns how to read these indicators. Among traders a lot of educational material available on the Internet to develop their knowledge – Take a look at the “Education” section of Admiral Markets to know more.


Usually seen as the Forex carries a significant risk for investors, but in the current economic climate has become more attractive option. Forex is not for the faint of heart, but investors are highly skilled and appropriate tools and proper knowledge of the market it is possible to be successful.


Forex lot of advantages for other investments. In the forex market the investor can get leverage as this method is not available in most other investments.


Think, for example, you want to buy a house, in general it is possible to pay between 10% to 20% of the total price of the house and Ststdan the rest of the money from the bank. Assuming you buy a house valued at $ 100,000, it is possible to pay $ 20,000 and borrow the rest from the bank. Then suppose that the price of this home rose to $ 120,000 during the six months, something that can happen in a rising market, can then sell the house and doubling your money.


Forex market works the same way in this – but more than that: with the foreign exchange market may sums up to 500 times greater than the amount of your initial investment control.


Forex other advantages compared to other financial instruments. Investors can enter the market is much smaller quantities of capital, and you can sell it easily.


In the European Union, are monitoring the forex market closely and tightly regulated. Forex market has grown during the past few years significantly, the fastest growing financial markets in the world. One of the reasons for this rapid growth is a software that revolutionized in this sector during the past few years. At present, it has become easy to implement trades – everyone has an Internet connection can buy and sell currencies within seconds at any time, from anywhere.

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