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Forex - Foreign Exchange

Geetha
Written by Geetha. Posted in Other on 17 November 2010.
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Forex stands for Foreign Exchange and includes trading in foreign currency. The idea behind this trade is fairly easy money. The trade relies on the fact a type of currency buying and selling of another currency type. With Forex - also called FX - that way you can trade currencies. This is big money to earn.


Investments

Investing is about the same. If you buy stocks, you invest in a company you trust it. The value of your shares increase or decrease, depending on their selling them on. Somewhere like Forex, or the method of Forex, but such trade. It is no wonder that Forex is often used as an alternative to this trade when the shares and options to walk less.


$ 1,000,000,000,000

Turnover in Foreign Exchange - which in Dutch is also tantamount to currency trading - is no less than 1 trillion U.S. dollars per day. That makes Forex the largest financial market in the world. A major advantage of the Foreign Exchange market is that it runs 24 hours a day. This makes it possible to constantly changing prices to adjust. The Forex offices are located in four major cities, namely New York, London, Tokyo and Sydney.


Speculative

There is only one small part of the Foreign Exchange market from national governments or businesses use Forex global business. Most currency trading is therefore speculative. The Forex market is not regulated, what the stock market is the case. There is no one central location where trading takes place and she is usually performed between the parties through phones and computers. The electronic connections in the Forex is the order of the day.


Act

The point of a transaction on the Forex to that two actions occur simultaneously. So it goes to buying one currency while selling another currency. The transaction can be implemented, is also called a cross. It would therefore be that you sell Euros for the U.S. dollar or British pound for a Russian ruble. If the rates allowing you in that way a lot of money in relatively little time.


Popular

Trading on the Forex is terribly popular. This is partly because it dealt with a so-called Margin. Through the Margin trading allows you sums greater than your capital. In general, working with small margins, such as 1%. If you use 1% as margin at one million U.S. dollars, you end up at $ 10.000. If this amount is that you have in your account, can you invest and do business that way. If you like this way of working - also known as gearing called - uses, you are enabled to fast gains. But remember, while you also risk losing your entire fortune to play. It is therefore not advisable to make maximum use of these so called leverage. The risks are enormous.


Without risk

If you want to trade on the Forex without any risk, you can go to almost any company that acts on the Forex, a so-called demo account opening. Then you're free trade on the Forex without cost to you. Second win in this case nothing. Yet it is an interesting way to have access to trade in the Forex. On the internet sites also find that some kind of game made, so you can playfully learn Forex trading.


Geetha

Author: Geetha

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