Forex Broker Platform Comparison | J Athens Forex
Examen Forex Broker - Unlike the stocks and commodities spread around forex is a agreed decentralized shout from the rooftops which means that there is no central location and there are no formal exchanges where transactions resign yourself to place. about every forex trading is curtains over-the-counter electronically by telephone, internet or in person.
Forex is a general term combining every worldwide financial institutions and organizations of all sizes into a single make known place.
Investors profit by correctly forecasting progressive values of currencies. E.g. if you think that the U.S. dollar is going to accumulation in value adjoining the Canadian dollar you can buy the USDCAD currency pair. If you are right and the value of the U.S. dollar increases you can sell the pair for a cutting edge price.
Your profit is the difference amid the purchase price and the sale price multiplied by the number of lots traded - trade size - or vice versa if you sell the pair short.
What is Forex?
Forex is the acronym for "currency market", in addition to known as the Portuguese currency market. The currency is the financial circulate later than the largest dimension and the highest liquidity in the world, later than more than 4 billion dollars a daylight in want ad movements. The size of the foreign row shout from the rooftops is such that the trading volume of the new York growth argument does not even accomplish 2% of those realized in the currency.
Currency pairs and clash rate
In forex trading subsequent to currency pairs (cryptomoedas and more). By analyzing the EUR / USD disagreement rate, you can look how many USD (listed or additional currency) you need to purchase 1 EUR (base currency).
Therefore, if the quarrel rate of the EUR / USD currency pair is 1.2356, this means that each euro can purchase 1.2356 dollars.
If the squabble rate increases, it means that the base currency has strengthened adjacent to the subsidiary currency. If the quarrel rate eventually decreases, it means the opposite.
The characteristics of the Forex or Forex market
- Liquidity: Because of the $ 5 billion that circulates daily, the foreign dispute spread around is considered the most liquid puff in the world. Basically, this means that you can buy any currency whenever you want, as long as the promote is open.
- enthusiastic and decentralized: the foreign clash push is a on the go and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, involve the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading upon the foreign difference of opinion market is the number of hours of operation; The foreign exchange publicize is door 24 hours a day, five on the go days a week, which makes it unquestionably handsome for many traders.
What are the factors that play the foreign squabble market?
As currency transactions are immediate, the price of foreign argument is affected by the do its stuff of supply and demand and, consequently, by speculation.
Thus, stability and the embassy and economic events, as capably as the monetary policy of the countries, are elements that portray the contributions.
- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly play in the price of a currency by adopting clear economic trial and announcements. For example, a rise in interest rates in the US Federal superiority would bump the value of the US currency.
- Political, social and economic events. If Forex participants bow to that a social event, can upset the political, economic or natural strengthening or decline in a currency, they will change the push price considering its operations that offer modify and demand for the currency concerned.
The more people undertake that a consistent trend is followed, the more it will law market prices, as this will reflect make public sentiment.
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