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Investors profit by correctly forecasting forward-looking values of currencies. E.g. if you think that the U.S. dollar is going to increase in value neighboring the Canadian dollar you can purchase the USDCAD currency pair. If you are right and the value of the U.S. dollar increases you can sell the pair for a highly developed price.

Your profit is the difference amongst the buy price and the sale price multiplied by the number of lots traded - trade size - or vice versa if you sell the pair short.

Examen Forex Broker - 

Unlike the stocks and commodities announce forex is a categorically decentralized broadcast which means that there is no central location and there are no formal exchanges where transactions tolerate place. virtually every forex trading is ended over-the-counter electronically by telephone, internet or in person.

What is Forex?

Forex is the acronym for "currency market", in addition to known as the Portuguese currency market. The currency is the financial melody with the largest dimension and the highest liquidity in the world, once more than 4 billion dollars a hours of daylight in classified ad movements. The size of the foreign row push is such that the trading volume of the extra York hoard squabble does not even accomplish 2% of those realized in the currency.

Forex

Currency pairs and difference of opinion rate

In forex trading once currency pairs (cryptomoedas and more). By analyzing the EUR / USD squabble rate, you can look how many USD (listed or subsidiary currency) you habit to purchase 1 EUR (base currency).

Therefore, if the dispute rate of the EUR / USD currency pair is 1.2356, this means that each euro can purchase 1.2356 dollars.

If the row rate increases, it means that the base currency has strengthened adjoining the auxiliary 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 puff is considered the most liquid shout from the rooftops in the world. Basically, this means that you can purchase any currency whenever you want, as long as the announce is open.

- working and decentralized: the foreign quarrel promote is a working and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, change the price trend of a pair.


- Political, social and economic events. If Forex participants recognize that a social event, can have an effect on the political, economic or natural clarification or subside in a currency, they will amend the publicize price in the same way as its operations that allow bend and demand for the currency concerned. 

The more people take that a consistent trend is followed, the more it will discharge duty present prices, as this will reflect present sentiment.

- 24/5 hours: A key factor that characterizes trading upon the foreign exchange make known is the number of hours of operation; The foreign row announce is get into 24 hours a day, five working days a week, which makes it certainly handsome for many traders.

What are the factors that function the foreign row market?

As currency transactions are immediate, the price of foreign squabble is affected by the achievement of supply and request and, consequently, by speculation.

Thus, stability and the diplomatic and economic events, as with ease as the monetary policy of the countries, are elements that characterize the contributions.

- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly operate the price of a currency by adopting sure economic measures and announcements. For example, a rise in immersion rates in the US Federal coldness would buildup the value of the US currency.
2019-03-22 10:07:09 * 2019-03-21 21:28:07
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