BASICS OF FOREX TRADING

This article gives an introduction on the fundamentals of trading Forex online, a brief explanation of the markets and the major advantages of Forex trading online. Currency or Forex, all terms used to describe the trade in the world of many currencies. On the foreign exchange market is the biggest market in the world, with trades amounting to more than 1.5 trillion dollars every day. On the foreign exchange market has no center or courses and is considered to be excessive over (OTC) market. Forex traders make incredible wealth day after day from the comfort of your home. Foreign currency, usually traded on margin. A relatively small deposit you can manage many more positions in the market. Foreign Exchange Trading takes place directly between the two partners to a transaction, whether by phone or e-broker network throughout the world. This trade, which involves the simultaneous buying of one currency and selling another.

There are two reason to buy and sell currencies. About 5% of daily turnover, and governments that buy or sell goods and services in foreign countries must convert profits into foreign currency in their national currency. The remaining 95% of trading for profit, or speculation. Currency combinations used in the trade is called a cross (for example, euro / dollar or GB pound / Japanese yen).. The market is called the spot market, since the trades are solved immediately, or? On the ground ". One of the key benefits of Forex trading is the ability to trade 24 hours a day, on Sunday evening (20:00 GMT) on Friday evening (22:00 GMT). Unlike stock trading currency on the Forex market does not snap off at the "close" each trading day. Advantage Forex time 24 hours a day, the market is that there is little or no gaps in the market, ie there is no chance that prices will close one day, and again the next day. The fact that Forex is often traded without commissions makes it very attractive as an investment opportunity for investors who wish to do business on the basis of.

Because the market is constantly moving, always trading opportunities, whether a currency is strengthening or weakening in relation to other currencies. When you trade currencies, they literally work against each other. Different Rates of payment of interest rates.

The interest rate differential, as a rule, do not affect trade considerations unless you plan to hold a position with a large differential for a long period of time. This is one of the main drivers of currency trends. You can have both positive and negative interest rate differential, so it can work for or against you when you make a trade. This is indeed attractive to the buyer's currency that pays a higher interest rate during a short currency, which has a lower interest rate. Fortunately, there is daily limits on currency transactions, and no restrictions on trading hours, except weekends. This means that almost always is the opportunity to respond to movements in currency markets and a low risk of getting caught without the possibility of exit. A Forex trading method with a high percentage of victories pay psychologically, keeps morale high, and enjoyable to trade. A string of profits will build your confidence. The losses should be small and wins should be larger than losses.