What is Forex and what is hidden just behind the forex trading?
The term Forex should now be well known also each trading beginners. But what exactly is meant and what is behind it, perhaps nevertheless opens not equal to each in detail. Therefore we are taken into account and explain in this guide, what exactly does Forex and want www.onlinescam.net to simultaneously address the question of what is behind the forex trading actually is hidden and how it works. Trade is always associated with a risk. Traders can lose their invested capital.
A Forex Trader achieved yields, provided that the price of one currency against the other currency behave as he expected. Does he expect, for example, that the rate of the euro appreciates against the dollar DU, he enters into a long position. A short trade he uses when he assumes that the euro against the US dollar is experiencing a price decline. So a trader can make a profit from both falling and rising price trends.
In forex trading, so-called lever can be used for trading. This means that with a minimal capital investment, which is deposited as a guarantee in the corresponding forex broker, more trade can be moved. This also yields a multiple of invested capital are possible – but also high losses. With a leverage of 1: 100 it is sufficient to store only one percent as margin. Up to 100 percent can be achieved so now gains but also losses.
Is that enough on the trading account paid-up capital to cover losses not, calls the broker dealer by a margin call on, nachzuschließen appropriate funds. Further information on the forex leverage and forex operation stand on our shopping guide pages.
Here you can trade Forex: market participants in the overview
After the question “What is Forex?” Has now been clarified, taking a look at the market participants in forex trading offers. Who makes really for this huge trading volume per day? The main players in the Forex market are certainly large banks, but also industrial companies, trading companies and private currency traders provide a highly liquid market. but a significant impact on the currency market practice, the central banks whose monetary policy can strongly influence the exchange rates between currencies.
it was mentioned already, there are lots of forex trading for many traders also due to its flexibility in time. Unlike the trading hours of the stock market, which is usually enough only until the evening, forex trading participants can virtually around the clock. From Sunday evening 22.00 until late Friday night at 23.00 can be traded forex without interruption. This situation results in part from the global onlinescam.net/binary-options/ time differences and OTC decentralized trade, which is not related to opening times of stock exchanges also due to electronic trading systems. Basically, however, the trade would also be at the weekend. But since, at this time to adjust many institutional market participants, such as banks, insurance companies or trading companies market their acts, was missing a large part of the otherwise available market volume.
Since the forex trading takes place directly between the world all market participants, the currency exchange is carried out with virtually no temporal interruptions. While currency trading in Australia and New Zealand starts on Sunday evening, the forex market in the US has just closed. So the trade is with foreign exchange continued across all time zones and ends on Friday evening 23.00.
Forex trading is booming
Unlike the securities trading exchanges never played in forex trading a particularly important role, as the essential part of trade over the counter in any case takes place in the interbank market. Thus, most still existing exchange markets were also consequently abolished. Trade plays nowadays almost exclusively electronically, so that the market is open and highly interesting to private traders.
Forex trading is booming. The figures from the Bank of England show impressive 17% growth in sales from October 2010 to October 2011 for the UK, the largest foreign exchange market in the world, is carried by more than 35 percent of global trade. The much acclaimed Triennial Central Bank Survey shows an increase of forex Online Scam direct trade (spot FX) by incredible 67 percent between 2007 and 2010. Our ECN broker compared with an overview about the increasingly popular ECN broker.