Trading Forex How

As in the Forex market like any other market, received currency pair (pair), then rises after selling more expensive or after the fall of the currency pair you will earn money by selling more cheaply. Forex transactions are spot transactions, it is Futures. How my forex trading operation is performed on a value in the future as in yapilirvadel market. A physical end of the process there is no exchange of goods. Profit and loss are reflected instantly in the clear as monetary and accountability. Investors can always monitor their account status in real time from the trading platform. Market five days a week, for 24 hours is open, you can take a position at any time in accordance with developments in the world, or you can close your position. Investors in the Forex market buying and selling as well as you can. When he made the purchase of a pair long (long) position is opened. Long positions may be closed with the same amount of sales in the same currency pair. You can start by selling a currency pair to your operation. Your position never before when you sell the currency pair short (short) positions you have open. In the same currency pair, you can close your short position by buying the same amount. The difference between buying and selling prices will create your profit and loss. There is always a pair of two currencies. Get mean or sell a currency pair is always the left of the currency pair (base currency -Basic currency) means buy or sell. Provisions on the right of the pair (Termini currency - whose detractors secondary currency) you have agreed to purchase or sell the currency. For example EURUSD means to make purchases in EUR to USD means get in return. The pair means to sell the same in return receive USD sell EUR. Currency pair (pair) Trading operations performed through the first currency, profit and loss occurs in terms of the second currency in the right side. One of the most important features of the Forex market and the factors that makes it popular is that it is a market leverage. A much larger amount of collateral in the amount of your deposit using leverage (leverage of up floor) you can get position For example, by paying only $ 1,000 deposit to your account, the leverage ratio of 1: 100 (one hundred times) in the $ 100,000 position size if you can open. So $ 1,000 security deposit and $ 100,000 can afford the position you are able to profit from price movements over the position of this magnitude. The possibility of adverse price movements a loss of the same size is also available. Leverage application is a two-edged sword.

INTERNATIONAL COMPANIES

INTERNATIONAL COMPANIES One of the most important parts of this foreign exchange market for the goods and services they receive (foreign exchange) are companies engaged in buying and selling. Compared with international companies, banks often do trades in smaller volumes, mobility on the company acts as a short time to market and market

European Monetary System

European Monetary System In 1972, a resolution to reduce its dependence on the US dollar currency of the European Communities. In the first attempt for the Netherlands, Belgium, Italy, France, West Germany and Luxembourg began with the creation of the European Joint Float systems themselves. Agreement especially in the Bretton Woods system of exchange rates would allow a wider range of fluctuation. The collapse of the Bretton Woods system and Smithsonian Agreement on snakes European countries came together in April 1972 on a range of ± 2.25%, while the tunnel is agreed on a range of ± 4.50%. Various regulations related to foreign currency adjustments were made between the years 1973-80. The European Council of December 1978 agreed to the establishment of the European Monetary Union, to be effective from the date of March 1979. In 1979, the European Currency Unit (ECU - European Currency Unit) was defined. Since January 1, 1999. The euro has replaced the ECU. As a result, variable exchange rate system is provided according to the basic rules of supply and demand money's worth. Today, the forex market is the world's largest and most liquid market. Inter-bank market constitutes a large part of speculative and trade intensity every day. A large banks can process logs billion dollars. These operations are performed for some customers, but a large portion of bank accounts and carried out by its own shareholders. Until recently, forex brokers in large volumes of transactions, inter-bank trading and were made anonymous parties uniting for a small fee for transactions. Today, this system is done with a fully electronic system with an excellent operation. This technology allows traders can perform all operations itself and is able to measure the speed with trading in milliseconds.

Smithsonian Agreement

Smithsonian Agreement: In March 1971 European Council, the Common Market countries will lead towards economic and monetary union agreed to prepare the Werner Plan. Countries covered by Werner Plan, agreed on among themselves to stabilize the European currency fluctuations. Europe is dwindling among themselves and exchange rate movements of currencies (the snake), Dollar (tunnel) against the stay was relatively large. Therefore, this system "snake in the tunnel" (snake in the tunnel) and took his name. In December 1971, Belgium, Canada, France, Germany, Italy, the Netherlands, Sweden, Switzerland, United Kingdom and the United States consisting of (Groups of Ten) countries gathered at the Smithsonian Institute in Washington DC and the Smithsonian agreement. The essence of this agreement with the US Dollar compared to foreign currencies by 8% value has been reduced. But in a very short time it appeared to be insufficient in exchange rate devaluation of the US dollar. Dollar by 10% on February 12, 1973 against speculative attacks was new devaluation. However speculative movements were so busy, they had to be off exchange markets between 1 March to 18 March 1973. When the exchange markets reopened on March 19, the Japanese and essentially peck European currencies against the dollar. Initially it was thought as a temporary arrangement, a new era - began the flexible exchange rate regime period.

Bretton Woods Agreement

Bretton Woods Agreement: Bretton Woods is a region of Carroll town in New Hampshire, a small US state. United Nations Monetary and Financial Conference held here in 1944 and then signed an agreement with this conference, the resulting system "Bretton Woods System" was named. The Bretton Woods, Mount Washington 45 countries attended the conference held at the hotel. The International Monetary Fund with the agreement signed at the end of this conference (IMF) was accepted as central institution. Agreement established with the system, "Gold Exchange Standard" is also called. Set a fixed exchange rate system "Bretton Woods System" also has created a gold exchange standard. Under this agreement because the US dollar was tied to the US dollar or other currencies. $ 35 With this agreement, equal to 1 ounce of gold was fixed values. Countries with American dollars in the hands of the central banks these dollars through turn into gold in the US. The US Dollar is still in the hands of private individuals in them turn into gold, but in the free market. The aim of Bretton Woods, to bring order to ensure stability of the exchange rate in the face of short-term fluctuations, was to prevent the emergence of devaluation in the exchange rate change. According to the IMF agreement, the system was held accountable for implementing these objectives.

Forex History

Forex History Today, the foundation was laid in 1973, the market known as Forex. But be converted from one currency to another currency in the money goes back to very ancient times. The dominant currency in the world before the second world war was the British pound. However, during the Second World War it lost power as a result of the fight with the British Pound in Germany. Which lost power with the 1929 crisis, the US Dollar during the Second World War to the present day with the strengthening of the US economy has been the most widely used currency and the United States have become the world's economic power.

What is Forex?

What is Forex? Forex FX English acronym which is composed of the Foreign Exchange and has proven that word takes its place as the indispensable financial markets. Because daily trading volume of 5.5 trillion dollars in the largest and fastest growing financial markets that people have played an important role in the world closer to the forex market. Which is a foreign exchange market in different countries exchanged their money. Although based on exchange of foreign currency in the Forex market as a result of this market is expected to see more interest from gold, silver, such as processing in different stock market indices on the outside of the oil and precious metals are capable entered. The most traded pair in prices in the days varies more than 18000 times. This is a relatively small price movement of (1 point) through the market, and is working perfectly liquid. Participants of the Forex market, commercial banks, central banks, portfolio management firms, insurance companies, large companies, protection (hedging) are funds and individual investors. Forex market is no general processing center where orders. Because there are geographical commercial centers in different parts of the world. According to the importance of these centers as London, New York, Tokyo, Singapore, Frankfurt, Zurich, Paris and Kong Kong. Operations; banks, institutions, and that can be done during 24 hours via electronic networks among individual investors. Forex day with only an Internet connection today is a very active market for investors of all sizes can access any time.