FOREX or The Foreign exchange rate market is an international market where various currency exchange transactions take place; this is in the shape of simultaneously buying one currency and selling another. The most commonly traded currencies are referred to as “Majors”; over 85% of daily transactions on Forex trading involve the Majors. These seven currencies are the US Currency (Dollar, USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBY), Swiss Franc (CHF), Canadian Dollar (CAD) and Australian Dollar (AUD). The Forex system in operation today was established in the 1970s when free currency exchange rates were introduced, this period also saw the US Dollar overtake the British Pound as the benchmark currency. Prior to this and in particular during World War II, exchange rate remained more stable.
WHAT IS FOREXForex - The Foreign exchange rate market.FOREX or The Foreign exchange rate market is an international market where various currency exchange transactions take place; this is in the shape of simultaneously buying one currency and selling another. The most commonly traded currencies are referred to as “Majors”; over 85% of daily transactions on Forex trading involve the Majors. These seven currencies are the US Currency (Dollar, USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBY), Swiss Franc (CHF), Canadian Dollar (CAD) and Australian Dollar (AUD). The Forex system in operation today was established in the 1970s when free currency exchange rates were introduced, this period also saw the US Dollar overtake the British Pound as the benchmark currency. Prior to this and in particular during World War II, exchange rate remained more stable.Forex trading in simplest terms is the buying of one currency and the selling of another. Forex trading, also referred to, as “FX” is open to corporations, small businesses, commercial banks, investment funds and private individuals, it is the largest financial market in the world averaging a daily turnover of over $1 trillion dollars, making it a diverse and exciting market. It is a 24-hour market enabling it to accommodate constant changing world currency exchange rates . According to New York time, trading begins at 2.15pm on Sunday in Sydney and Singapore and progresses through to Tokyo at 7pm, London at 2am and reaches New York at 8am. This leaves investors free to respond to global political, economic and social events when they take place, day or night Benefits of ForexThe (FOREX) currency market is the most liquid market in the world having various participants: banks and the investment organizations, corporations and the private speculators using the market not only for realization of speculative operations, but also for insurance upon fluctuation of exchange rates at export-import transactions.High Profitableness It occurs by means of the mechanism of Margin Trade which consists that there is no necessity to have all sum of the contract to make a transaction; it is enough to bring only in a pledge which makes the certain percent from the sum of the contract. That means, you are financed with the missing sum of money for the transaction execution on currency purchase or sale. For example, it is necessary to bring only in 1000 dollars of a pledge for realization of the deal on 100 000 dollars at a pledge in 1 %. So the trader may operate with the market sums of hundred thousand dollars, having small means in stock. For instance, you are a client of Northfinance Ltd and you have a 1000 USD on your account that allows you to strike a bargain on market Lot in 100 000 USD. Assume, that having analyzed change of rate USDJPY by the means of a convergence method - divergence of sliding average MACD (the fast line has crossed slow from top to down), You have made the decision to sell 100 000 USD against the Japanese yen at the price of 124.80. In a few hours when the rate of USDJPY has fallen down to 100 points and became 123.80, You have decided to close a position and have bought dollars much cheaper, than have sold those, so You have received profit.
WHAT IS FOREXForex - The Foreign exchange rate market.FOREX or The Foreign exchange rate market is an international market where various currency exchange transactions take place; this is in the shape of simultaneously buying one currency and selling another. The most commonly traded currencies are referred to as “Majors”; over 85% of daily transactions on Forex trading involve the Majors. These seven currencies are the US Currency (Dollar, USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBY), Swiss Franc (CHF), Canadian Dollar (CAD) and Australian Dollar (AUD). The Forex system in operation today was established in the 1970s when free currency exchange rates were introduced, this period also saw the US Dollar overtake the British Pound as the benchmark currency. Prior to this and in particular during World War II, exchange rate remained more stable.Forex trading in simplest terms is the buying of one currency and the selling of another. Forex trading, also referred to, as “FX” is open to corporations, small businesses, commercial banks, investment funds and private individuals, it is the largest financial market in the world averaging a daily turnover of over $1 trillion dollars, making it a diverse and exciting market. It is a 24-hour market enabling it to accommodate constant changing world currency exchange rates . According to New York time, trading begins at 2.15pm on Sunday in Sydney and Singapore and progresses through to Tokyo at 7pm, London at 2am and reaches New York at 8am. This leaves investors free to respond to global political, economic and social events when they take place, day or night Benefits of ForexThe (FOREX) currency market is the most liquid market in the world having various participants: banks and the investment organizations, corporations and the private speculators using the market not only for realization of speculative operations, but also for insurance upon fluctuation of exchange rates at export-import transactions.High Profitableness It occurs by means of the mechanism of Margin Trade which consists that there is no necessity to have all sum of the contract to make a transaction; it is enough to bring only in a pledge which makes the certain percent from the sum of the contract. That means, you are financed with the missing sum of money for the transaction execution on currency purchase or sale. For example, it is necessary to bring only in 1000 dollars of a pledge for realization of the deal on 100 000 dollars at a pledge in 1 %. So the trader may operate with the market sums of hundred thousand dollars, having small means in stock. For instance, you are a client of Northfinance Ltd and you have a 1000 USD on your account that allows you to strike a bargain on market Lot in 100 000 USD. Assume, that having analyzed change of rate USDJPY by the means of a convergence method - divergence of sliding average MACD (the fast line has crossed slow from top to down), You have made the decision to sell 100 000 USD against the Japanese yen at the price of 124.80. In a few hours when the rate of USDJPY has fallen down to 100 points and became 123.80, You have decided to close a position and have bought dollars much cheaper, than have sold those, so You have received profit.
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