- このトピックは空です。
-
投稿
-
The forex market is the world’s largest international currency trading market operating non-stop through the working week. Most forex trading is performed by professionals such as bankers. Generally forex trading is done by way of a forex broker – but there is nothing to stop anyone trading currencies. Forex currency trading allows buyers and sellers to buy the currency they need for their business and sellers that have earned currency to exchange what they have for a more convenient currency. The world’s largest banks dominate forex and in accordance with a survey within the Wall Street Journal Europe, the ten most active traders who are engaged in forex trading account for almost 73% of trading volume.
On the contrary, a sizeable proportion of the remainder of forex trading is speculative with traders building up an investment which they wish to liquidate at some stage for profit. While a currency may increase or decrease in value relative to a wide variety of currencies, all forex trading transactions are based upon currency pairs. As such, however the Euro may be ‘strong’ against a basket of currencies, traders will be trading in just one currency pair and may simply concern themselves with the Euro/US Dollar ( EUR/USD) ratio. Changes in relative values of currencies could be gradual or triggered written by Community Clover specific events for example are unfolding during the time of writing this – the toxic debt crisis.
Because the markets for currencies are global, the volumes traded every day are vast. For the large corporate investors, the good advantages of trading on Forex are:
Enormous liquidity – over $4 trillion on a daily basis, that’s $4,000,000,000. It means that there’s always someone ready to trade with you
Every among the world’s free currencies are traded – consequently you might trade the currency you want anytime
Twenty four – hour trading through the 5-day working week
Operations are global which mean that you may trade with any a part of the world anytime
From the viewpoint of the smaller trader there is lots of benefits too, for example:A rapidly-changing market – that is one which will be changing and offering the possibility to make money
Well developed mechanisms for controlling risk
Ability to go long or short – this means that you can make money either in rising or falling markets
Leverage trading – meaning that you can take advantage of large-volume trading while having a relatively-low capital base
Numerous options for zero-commission tradingHow the forex Market Works
As forex is all about foreign exchange, all transactions are made up from a currency pair – say, as an example, the Euro and also the US Dollar. The basic tool for trading forex is the exchange rate which is expressed as a ratio between the values of the 2 currencies such as EUR/USD = 1.4086. This value, which is referred to as the ‘forex rate’ means that, at that specific time, one Euro could be worth 1.4086 US Dollars. This ratio is always expressed to 4 decimal places meaning that you might see a forex rate of EUR/USD = 1.4086 or EUR/USD = 1.4087 but never EUR/USD = 1.40865. The rightmost digit of this ratio is referred to as a ‘pip’. As such, a change from EUR/USD = 1.4086 to EUR/USD = 1.4088 would be generally known as a change of 2 pips. One pip, therefore is the smallest unit of trade.
With the forex rate at EUR/USD = 1.4086, an investor purchasing 1000 Euros using dollars would pay $1,408.60. Should the forex rate then changed to EUR/USD = 1.5020, the investor could sell their 1000 Euros for $1,502.00 and bank the $93.40 as profit. If this will not appear to be big amount to you, you should put the sum into context. With a rising or falling market, the forex rate will not simply change in a uniform way but oscillates and profits may be taken often times everyday as a rate oscillates around a trend.
When you’re expecting the value EUR/USD to fall, you might trade the additional way by selling Euros for dollars and buying then back in the event the forex rate has changed to your great advantage.
