Friday, August 13, 2010

Forex Exchange Market

Forex - perhaps is the most attractive subject in the Internet at the moment. And between those, it's just the most famous type of Internet trading. Online trading allows you to make profits without leaving the barracks using a PC as a primary tool. Forex - is an international foreign exchange market. Ability to trade national currencies of various countries appeared since 1973, when some currencies have ceased to live "pegged" to gold and became a commodity, which was likely to trade. The object of Forex trading are the currencies of various countries, and fluctuations can extract a substantial profit on the difference between buying and selling. Therefore, this makes the Forex market very
attractive for international bidding. Praise of this kind of business due to the fact that the trader can be almost everyone - from private individuals to large bank. In addition, the Forex brokerage companies provide their clients with access to employment and other financial markets: the stock (shares), commodity (supply contracts) and Futures (of various financial assets). The main feature of Internet trading, which attracts to it smaller players - it is an opportunity of buying and selling in the absence of the total amount required for the transaction. Brokers, undoubtedly, require that you make the security deposit, but allow the client to make transactions in amounts of 40-50, and at times to 100 times greater than one fee. Losses and profits are assigned to the client, insures the deposit broker. He is the mediator between the client and the market, and each operation gives him a certain percentage of profit .The volume of transactions Forex now stands at U.S. $ 3 trillion a day. The share of transactions made through the Internet, already accounts for more than 10% of the Forex market turnover Forex. Western  Brokerage Company initially relied on traders who are able to guarantee the lowest in a few thousand dollars. But the appearance of the less well-off investors from the former Soviet Union and broad dissemination of online trade, which allows to enter the market with the PC, caused the reduction of the threshold of a pledge for private investors to the $ 250-500 and much as $ 50-100. But this is not the limit. There are also mini-forex - a "lite" version of Forex - where you can enter into transactions with a minimum deposit - $ 1! This gives the following advantages: Allows you to enter into transactions for hundreds of dollars on deposit with 10-20 dollars. Risk is minimal and you can " inexpensive "practice  in the market. Allows you to enter into transactions for hundreds of dollars having to deposit 10-20 dollars. The risk is minimal and you can "inexpensive" to practice in the market. Allows to carry out small transactions and gathered invaluable experiment work. Protects your money from the "immediate burning and loss of interest in the work. It is worth noting that internet trading in terms of legislation - the same thing as gambling or wagering. Consequently brokers registered as bookmakers company and purchase of currency or other asset is equal to the rate on a certain event in the future. Returns to investors in selling / buying currency is considered to be his winnings on the bet.

How to work?

Scheme of earnings on the currency market looks extremely direct. Brokerage company offers customers access via the Internet to their own terminals connected to the trading systems and exchanges. To connect you upload to the Middle PC special program that allows you to give instructions for transactions broker dealers online. The broker offers you an account. Later, all of course, just as in real trading. You acquire or sell a certain amount of currency, hoping through some time to make a profit by closing close order. Difference between the buying and selling and is your profit or loss. You can earn both at the rising and falling at the rate.

How can you make in rising / falling of the exchange rate

With the rising of the exchange rate of all more or less clear. You buy a currency, and there are times when the price for it grows up - sell. Difference between the purchase price and sale price - your profit. In the second case (falling of the exchange rate) as you would take a "loan" from the broker a certain amount of currency and sell it on the market. Then, through time, redeem the same amount at a lower price, returning the "duty" broker. Your profit is the difference between the sale price and the purchase price.

Registration in Forex

Open your true account entirely likely and without a visit to the office broker and the bank. Many traders will successfully use electronic payment system E-Gold and WebMoney. Communication with the broker of the program is limited to terminal. Programs for Internet trading is easily found at brokerage firms. Download and install them can be a positive gift. Money for the status of such programs is sincere reason - the brokerage company already earns the client by receiving a commission. Such software exists in quantity. The most famous of them - MetaTrader4 the MetaQuotes and trading platform iTrader. These programs are small, usually the download does not exceed the volume of 3-5 Mb. In the working window, the trader sees the registry quotations and the movements of the selected pairs of currencies or stocks. The utility converts the mechanical condition of your account after each change in the pricing of financial instruments, allowing you to get all the time departed the profit and loss account and make quick decisions based on the current market situation. The program also provides the possibility of independent conduct technical analysis of price fluctuations, using a holistic series of charts and indicators.

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