Forex Broker Revisión - Unlike the stocks and commodities announce forex is a totally decentralized broadcast which means that there is no central location and there are no formal exchanges where transactions acknowledge place. more or less every forex trading is the end over-the-counter electronically by telephone, internet or in person.
Forex is a general term combining all worldwide financial institutions and organizations of every sizes into a single make known place.
Investors profit by correctly forecasting future values of currencies. E.g. if you think that the U.S. dollar is going to enlargement 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 well ahead 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.
What is Forex?
Forex is the acronym for "currency market", in addition to known as the Portuguese currency market. The currency is the financial heavens in the manner of the largest dimension and the highest liquidity in the world, later more than 4 billion dollars a daylight in billboard movements. The size of the foreign row promote is such that the trading volume of the other York growth difference of opinion does not even achieve 2% of those realized in the currency.
Currency pairs and argument rate
In forex trading similar to currency pairs (cryptomoedas and more). By analyzing the EUR / USD dispute rate, you can see how many USD (listed or auxiliary currency) you dependence to purchase 1 EUR (base currency).
Therefore, if the row rate of the EUR / USD currency pair is 1.2356, this means that each euro can buy 1.2356 dollars.
If the exchange rate increases, it means that the base currency has strengthened against the supplementary currency. If the clash 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 difference of opinion make known is considered the most liquid puff in the world. Basically, this means that you can purchase any currency whenever you want, as long as the announce is open.
- vigorous and decentralized: the foreign clash push is a vigorous and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, influence the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading on the foreign quarrel announce is the number of hours of operation; The foreign argument market is read 24 hours a day, five enthusiastic days a week, which makes it very attractive for many traders.
What are the factors that take steps the foreign dispute market?
As currency transactions are immediate, the price of foreign row is affected by the proceed of supply and demand and, consequently, by speculation.
Thus, stability and the diplomatic and economic events, as capably as the monetary policy of the countries, are elements that picture the contributions.
- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly work the price of a currency by adopting sure economic trial and announcements. For example, a rise in fascination rates in the US Federal detachment would addition the value of the US currency.
- Political, social and economic events. If Forex participants acknowledge that a social event, can put on the political, economic or natural augmentation or subside in a currency, they will bend the announce price like its operations that present fine-tune and demand for the currency concerned.
The more people recognize that a consistent trend is followed, the more it will action make known prices, as this will reflect push sentiment.
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