The FOREX, also known as FX, is the global market for buying and selling currencies. The acronym is Currencies Foreign Exchange.This is the busiest market of capital recorded daily over a trillion dollars, an amount greater than the sum of all other markets combined. We say that is a global market, because it is available to investors 24 hours a day, 5 days a week. There are approximately 4500 institutions active in the FOREX, and millions of investors that make it through these institutions.
Main foreign exchange trading centers
The main forex trading centers worldwide are the Tokyo Stock Exchange, the New York Stock Exchange and the London Stock Exchange, so that as they open and close in stages according to time zones, the global investor is open 24 hours a day market. So you can respond to socio-economic changes or news that affects instant quotes.
The pairs of currencies in the FOREX
In FOREX, all the moves and quotes are expressed in currency pairs. A purchase of a currency involves selling another simultaneously. Forprofit, buying a currency with the expectation that the exchange rate with the base currency to rise. When this occurs, we must make the purchase and sale for profit reverse (for example, bought $ 10 to $ 10 when the rate is 1/1, the exchange rate rises to 1.2 / 1, which means that the $ 10 I have now give me 12 Euros, buy dollars and sell my Euros, and as I started with 10 and now I have 12, I won $ 2 in operation).
Gains or losses
The investor's expertise to anticipate changes in exchange rates, it will therefore essential to generate profits or losses in its portfolio.We think that being a continuous market in time (24 hours) and huge liquidity, volatility is enormous. This means that there will be immediate and rapid changes in opposite directions.
Therefore, it is a market that requires dedication to follow up. There are numerous applications for it, allowing us to take advantage of the technological age and to have at home, on your own computer, a personal control center of the forex market. These programs allow you to set a test mode or training, in which investments are fictitious, and that we must master before moving on to invest in "real" money.
Factors that may influence changes in exchange rates
Factors that may influence changes in rates of exchange are endless, so only a wealth of experience and expertise allow us to extract maximum performance at FOREX. In fact, it may seem a contradiction, expert investors act almost automatically, without being influenced by the emotions of the moment, and that can only be achieved with much participation time having lived situations of all kinds.
Ways to analyze possible variations in the FOREX
There are two ways to analyze possible variations in the FOREX. First is the fundamental analysis, based on experience of how any event or news affects exchange rates, and technical analysis, based on studies of the historical evolution of exchange rates. A savvy investor will use both tools to decide their strategies, if only to have clear guidelines on investment. A good plan that includes both increases limits (excessive greed can be very bad) and the downs (a withdrawal time is beneficial) will maximize our chances of benefit. On a day to day, in the case of speculative investments, constant monitoring of changes and lessons learned will be our greatest allies.
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