forex

forexWork in the foreign exchange market - Forex Although the overall purpose is the same but the traffic and the foreign exchange market differ slightly from those in other stock markets and there are some few things that must be invested in the foreign exchange market that is known for example, features about buying and selling in the foreign exchange market is important that Know - for example - that currency rates are always in pairs of currencies. All the shops for this reason that result from operations automatically purchase of a currency and sell the other when working in the foreign exchange market, you should implement the process of trading one at a time when it expects to increase the currency purchased in value compared to those sold. If the value of the currency in which you buy you have to sell the currency on the other until proven profit. To be traded this open (or the open position) is a trading investor can be sold or bought a pair of currencies but has yet to re-sell or buy as equivalent to closing position. It must be in the traffickers know the ways in which currencies are introduced currency rates. The currency is the first husband and the other main currency is currency or currency equivalent price. In most of the time, the U.S. dollar is the base currency is the expression of the price per unit U.S. $ 1 each currency interview (for example, U.S. $ / Yen or U.S. $ / Canadian dollars). The only exception is the euro and the pound sterling and the Australian dollar since the prices of these states as "dollars for each foreign currency." Often includes the prices of foreign currencies to "bid" price "demand" and the tender is the price at which a broker or trader is willing to buy the currency versus the interview. But the difference between bid prices and demand are so-called "disclosure". The cost of the work's position in the market determined on the basis of this disclosure and the prices are always written from the five numbers for example (136.70) and the latter figure the price is what is referred to as the so-called "Bip" (the subject of a bulleted) is the smallest change in price could be Price may be subjected to it. For example, if the price was submitted to the U.S. dollar / Canadian dollar price bid of $ 136.70 and the price of 136.75 have requested the ability spot where five is the cost of profit. This means necessarily a desirable step in the position until equality without loss. The margin on the foreign exchange market is not a sum paid in advance for future purchases of foreign currencies, as in other markets but is the amount deposited in the account where the trader covers any losses in the future. The typical currency trading system at up to 100:1 or more, the system automatically calculate the amounts needed for current positions and also check availability before implementing any margin trading. As opinion, requires trafficking in the foreign exchange market mentality slightly different than those required by the stock market and bonds. But because of liquidity and the elimination of multiple opportunities for great profits and high levels of power exercised by supermarkets have become the foreign exchange market are increasingly popular among investors. And the traffickers that they always fully aware that while there were tremendous opportunities there are risks that can not gain by losing her death is why he must acquaint fully to all methods of managing risk. The main currency and the currency changing When you need traffic to two types of currency - for example, could buy U.S. dollars and sell euros or buy euros and sell yens or any other group of currencies that are dealing with a broad but there are always two sides of the circulation called the long side or what you've Buy side and short selling is what you've This means that you assume that there is work they have more power than the other. Usually (but not always) are done Awaltdaol trafficking, the highest value. When traffic in the U.S. dollar against the deutsche mark the method accepted in circulation is to purchase a specific amount of Nuweiba 'U.S. dollar instance million U.S. dollars. The situation when the closure is that trafficking had been corresponding by any one million U.S. dollars. The gain or loss is a clear change in the euro amount secured debtor for the two operations. In other words, the volume gain Aujsartk listed in euros which is known to the workers in the name of his price. As part of our services based bank Sodquiso happen automatically change the profits and losses of major currency if you wish. This method of trading on various markets future, for example, when the German mark or the yen or the Euphrates are fixed currency circulation, which leads to remember that every dollar of profits or losses. It is possible of course to choose this way of trafficking in foreign exchange markets, but not the conventional method. Interest rate differentials Various currencies pay different interest rates. This is one of the most important driving forces behind the trends in trading foreign currencies. Of course, attractive to the buyer to pay a higher interest rate currency at a time when short-currency interest rate lower. In spite of the interest rate that is uneven and may not be much, but that is of the utmost importance and has a very influential position. For example, the interest rate differential between U.S. dollar and Japanese yen, about 5% for several years now. In the position could support the amount of margin applicant as 5% this produces about 100% profit on capital in the year when it purchased U.S. dollar. And of course there is a more important factor is the relative value of currencies, which changed at 15% lower than the rise during in 2005, regardless of varying interest rate. In terms varying from pure interest rate possible for you to exploit the advantage of the 100% profit in the year to your favor by making U.S. dollar currency long and there are only tentative palaces same amount if the dollar is the currency short. The benefit of this position currencies have a high interest rate where the U.S. dollar horse winner in the market over in 2005 but it is certain that any currency with higher interest rate would be the strongest currency and whether the reason for the high interest rate is inflation, this may be a cause of mistrust Even given the currency of the benefits that would achieve one of the high interest rate. Arrest systems loss It possible to see from the above explanation that there are many opportunities and risks in foreign exchange markets and shops can be exposed to offensive operations profit and loss between 20-30% every day. This causes the application of policies regarding the arrest of loss firm sites that are moving against you. Fortunately, there are no restrictions on the daily dealings in the foreign exchange market trading hours or otherwise weekends. This means that there is almost always an opportunity to deal with movements in the currency markets basic and simple existence of risk in that position you can not fall out of it. Of course, possible that the market is moving very quickly and could have ordered the arrest of loss is not a guarantee that Bmekdurk out of position at the same level you want. But the main risk is in fact what has happened over the weekend where all markets are closed and this happens between the time and another due to many political positions such as meetings of the seven adults and often has been rescheduled in the holidays. As for private businesses speculated we recommend that the work orders arrest of loss prevention. Exxon's Bank of shops on the Internet you could easily develop such orders at the same time, which sees the developments of conditions in the market chart on the screen of your computer