It took several years to get acquainted with the capital market. Mastering the rules of trading with me, however, took barely a moment – as a nation we have in our blood the zeal for travel and exchange currencies, and now we can implement these vents in a much more distant way.
All those who want to set the world exchange rate on the move meet on Forex – the most important market for the global financial market. The daily turnover here is equal to 2.7 billion USD, ie three times the turnover achieved by the American stock and bond market. The name Forex itself is an abbreviation of the English foreign exchange. Buying and selling are carried out on the currency market and forgive the exchange of one state for the currency of another.
In the currency market, the rules apply as in the market with any other value of the currency of the currency is the result of supply and demand. Quotations most affect me macroeconomic factors and political events that affect the economic situation of the country.
The main influence on the long-term opening of the exchange rate is the state of public finances of a given state (high level of indebtedness as a result of a decrease in the court’s tax rate) and the level of annual rates ). What is important is the information that comes from the world economy in terms of the level of foreign investment, the trade balance of the state and indicators of inflation, unemployment, retail sales, average wages, etc.
|Pros and cons of investing in FOREX|
|high liquidity||high risk of loss|
|relatively small was needed for investment||risk of influencing prices by large investors|
|opportunity to grow on the rise and fall||for zkuen investors only|
How much does such a profit come to me?
Investors can choose from a range of currency rates, including the most popular EUR / USD, EUR / GBP, USD / JPY, AUD / JPY, AUD / USD, EUR / CHF, EUR / JPY, USD / CAD, USD / CHF. Trades with these currencies account for the overwhelming volume of all trades. In addition, Czech forex companies offer further connections with the local market of dollar and euro quotations in Czech korunch.
When trading on the currency market, transactions are performed on two simultaneous ones, which means that at the moment when the investor long position on the currency exchange rate on EUR / USD there is a tax on the amount of euros and at the same time this amount of US dollars sells. The first of these reasons is my current BID / ASK system (purchase price / sale price). Forex has the basic feature that it can make profits both in a situation where the exchange rate rises and in the event of a decline. There is no bear or b market in this market, here every day an experienced investor will find a way to make money independently of market conditions and economic situation.
Vvoj mnovho pru EUR / USD za poslednj msc
Zdroj: X-Trade Brokers
Profit is generated due to the variability of exchange rates. Prices on the Forex market are published in real time, which means that the exchange rates are hidden in the so-called pips (the lowest value by which the exchange rate can be changed, the quotation step depending on the currency bar is the type or quarter instead of the decimal point) , and a suitable transaction can be performed literally in a few seconds. In the case of Forex, the investor does not normally collect fees associated with the conduct of the trade and the closing trade cost is the spread or difference between the purchase and sale price of the currency. Spreads for individual currency averages. For highly liquid items such as EUR / USD, it is, for example, 3 pips, for me, liquid items can be much more.
Forex is characterized by the fact that it is traded mainly on the basis of the exchange rate differences, trades in derivatives, their composition forms exchange rates. Profit can be achieved, nor would it be necessary to actually sell or buy these currencies. However, it is not necessary that there is also the possibility of dialing the business transaction for the selected currency in the form of a physical delivery (by bank transfer).
What to watch out for
Every hiring investor should pay close attention to various dubious companies, especially with a message in the so-called tax havens, which are offered trading on the foreign exchange markets over the Internet. Their number is not as high as it was in the past, but danger still exists here. In any case, it is necessary to find out as much information as possible about the brokerage firm through which the investor decides to trade, such as fee structure, software support, quality of service, free analysis, etc. ( from).
Invest in commodities and in me
For domestic investors, especially for those who are hiring, I may be a suitable broker who communicates with the client in ethina. These are companies that share in R (eg Colosseum, or X-Trade Brokers), or companies that share abroad, but also communicate in Czech (eg Harpoon, IQ Trade). However, investors who do not have a foreign language problem can use the services of foreign companies (Oanda, Saxobank, Refco, etc.). markets. After setting up an investment here, investors can enter the world of a new market through them, which is full of life 24 hours a day. Supervision by the regulatory body increases the security of ongoing transactions and the credibility of the entity in its customers.
Finann pka ili leverage or simple financial mathematics
The most interesting feature of currency derivatives traded on Forex is financial leverage. Thanks to this, the investor’s ability to place an order in a value that exceeds the total value is measured here. The main advantage is the availability of the minimum value of a business transaction with which it invests on the market, based on 10,000 units of stock currency (that is, 0.1 lot of value, which is a basic business unit). Thanks to the use of funds to trade with the bank, for example. $ 10,000 let me go, the investor is barely $ 100. Thus, people with a small capital can engage in the market and make a profit with minimal price changes.
We must not forget, however, that small capital in connection with high financial knowledge is known to increase investment risk. Leverage works on both sides to be able to multiply chapters in short periods of time, but the change also suffers losses. The use of funds can be recommended to investors mentally prepared for the possibility of losing knowledge of the capital.
The fact is that most forex platforms offer a helping hand in the first steps in the market and provide investors with free demos that work just like real trading systems. We would not even be forced to invest our own capital (demotes can be equipped with a virtual deposit), with the help of this we have the opportunity to get acquainted with the specifics of Forex trading and verify the correctness of our assumptions about their exchange rates. The conditions of concluding business transactions are identical to the factual conditions under which investors operate when trading on real technologies. Investin mistakes cost us nothing and we can later experience the experience in the real market.
How the system works
The parties concluding a business transaction on the currency platforms are: the person placing the order to buy / sell the currency and, on the other hand, the type of forex company that fully acts as a market maker or the person who creates the market. Such a company provides exchange rate information to me and supervises the liquidity of the market and the important implementation of orders. Prices offered by different brokers do not differ from each other. Sporadic deviations, they occur, arise as a result of differences in applied spreads (difference between purchase and sale price).
Forex is an OTC market (over the counter), ie. over-the-counter, decentralized, also not a physical business place. It is traded with the help of other trading systems and telephone connections between market participants, such as banks, currency brokers, companies and individual investors. These markets represent business transactions between banks and financial institutions, creating an interbank market, where they are traded 24 hours a day in different parts of the world (Tokyo and New York horses). The weak point of decentralization and practically zero regulation is the possibility of manipulating the exchange rate, which can lead to great games on the market and investors could easily pay for it. So caution is never enough.