Tuesday, November 5, 2013

Forex Basics

1. What is Forex?
currency trading market, "Forex" or foreign exchange trading is the largest financial market in the world, where they are trading more than $ 3 trillion a day. And does this on the basis of market trading in global currencies.

2. How to trade in the Forex market?
Forex trading process is done by buying or selling a "currency pairs", where the rolling trading one currency against another. Examples of major pairs of currencies: EUR / USD, USD / JPY, EUR / JPY, GBP / CHF, the husband of the Canadian dollar / U.S. dollar, and others. 
When you opened a package (position) in the Forex markets, you are the status of "long" on a particular currency, and the status of "short" on the other currency. Indicated that there is no specific central location of the Forex market, and that it is one of the most flexible types of trading and available online for all investors from around the world.

3.  Is the process of trading in Forex dangerous?
The short answer is "yes." However, there are many means and methods that can be used in order to minimize the risks. Among those things that must be taken into account to reduce the risk: according to the analysis of the markets trading ( currency technical analysis and fundamental analysis of currencies ), choose an appropriate trading systems, the use of signal providers and Forex Signals , Forex software trading mechanism.However, the best way to reduce risk, which is a long and difficult way, is that you in the Forex adequate education on the Forex markets, before you start trading operations on a real Forex account. But most experts recommend using a demo forex account for a certain period of time Before you Baltdoual the real money.

4. What are the working hours of the Forex market?
Forex market that features a 24-hours. Begins "Forex Day" in the city of Sydney in Australia and travels around the world via the "Tokyo" and then "London" and then "New York," according to Time calculation works.

5.  What is the difference or similarity between the forex markets and stock markets or mutual funds?
There are a lot of things in common between the Forex markets and the stock markets or other trading markets, but in general, we can say that the Forex markets are where trading operations with a shorter life of the processes that take place in other markets. Does not most traders in the forex markets to leave their positions open throughout the night, where it includes a fee called "extension fee". The stock market is much smaller than the currency market, which makes the learning process harder.

6.  How long are maintained positions Forex?
This depends mainly on the willingness of rolling, but statistics show that 80% of trading in the Forex lasts for 7 days or less, and that 40% of them end in less than two days. In general, the traders in the forex markets to close their positions when investigating the profits from these deals. While working "stop loss point" when the loss reaches a certain threshold, or when there are other status code and rolling decides to transfer funds to it.

7.  frequency trading the Forex markets?
including that most Asamasamarh do not they impose a fee for opening new positions, and the market is open almost around the clock, the traders are opening multiple positions throughout the day. Based on recent studies, the rate of asanas that opened by rolling the day is between ten and twenty and status.
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