Information about Money and business

What is the definition of Forex

Wrong concepts: There are two concepts that lay on the Forex market First, the work in this market resembles the play Roulette - one wins a large amount of money and lose the rest. Of course, the big risk. But Forex is not a game of Roulette, in the changing currency rates play certain laws. First value of the currency depends on the specific indicators of the country's economy designate. Secondly determined by the preferences and expectations of dealers in the market. Although it is difficult to work expectations but possible. Work on the Forex market confirms that the proportion of positives because analyses include more than coincidence. Today we find that the risk and the risk is part and parcel of doing the work actively in market conditions, or simply can say that the real amount for the success of any project or deal could be different from what was expected when the decision. But speculation in the capital market is the most risky and dangerous because it can be the loss ratio of the complexity and difficulty of predicting Conduct market can never guarantee a positive result. That this fact alienated many working in the capital market although it is accessible to all thanks to technology and electronic communications huge base for the analysis of information . Second concept is that the profit wrong person must necessarily offset the loss of others. But speculation in the Forex market is not in many cases at the expense of changing currency rates, because there is a wide range of participants using currencies of change for other purposes (import and export, investment and tourism) did not play the price fluctuations of times short an important role for them. Thanks to the freedom to change currencies core global free floating rate determined by the supply and demand become the process of changing the currency in itself a source of income, namely that the currency is a commodity like any other goods. The fact that the currency market like no other exchange markets never be in balance. The condition can be described as a permanent state of research on the balance slippery slope. What is required for success in the currency market? The basic vehicle access to that may be set up as follows: Predict the correct direction of change currency; Achieve a minimum of loss when the market situation unpleasant; Considered dealing with the funds used in a trade. The prediction depends on the correct prices of deep study of the market. Usually had three forms of market analysis: analysis of news and analysis and technical analysis myself. It would be haphazard, and the correct combination of these three analyses is the guarantee for the correct prediction in the currency market. News analysis includes the study of political and economic factors that might affect the currency market. Example of reports policies Reserve Bank Central American economy and basic transactions, and the statements important statesmen and other important events. The main objective of the analysis is the basic analysis of the key factors and their impact on the dynamics of prices in the currency market. The shops in the Forex market always be familiar with the current situation globally. Technical analysis is the analysis of the market situation changes based on the previous price. Used in this analysis graphs that reflect price changes for a certain period of time. Technical analysis, we also understand the general market situation at the present time, several indicators can predict price changes in the near future. The technical analysis based on the fact that the movement of prices take into account all factors that may affect the market - economic, political, psychological and other factors - were all previously considered in determining prices. And if the market truly market unchanged jolted result of a huge number of participants taken after their analysis of the enormous amount of information when they convene deals. The behaviour of prices is the result of such decisions, and you have to monitor each input information in this market. What need is a few shops fact - to know the direction of the movement of prices. The technical analysis gives a myriad of tools that enable us to extract useful forecasts of graphics prices. Psychoanalysis is to analyse the behavior of traffickers in the market and their psychological and expectations, hopes and fearing. This kind of analysis is very important because the rate of health very high. We must not forget that behind the computer stations that give people and the expectations of prices depends on their actions eventually currency. Kinds of speculation in currency exchanges Currency speculation is divided into several types: 1) immediate speculation: known as the spot where the currency moving between second and the other, which requires that the speculative screens before prices always, the advantage of this type of speculation speed, and that could be a large number of operations per day can be determined or profit the loss. 2) speculation on future contracts Future: the speculation on the currency in the future at the rate of expected future; where it is working according Technique is different from other kinds of speculation, often subject to the expectations of speculators based on the availability of their data and information on the movement of currencies in the current and future economics States. 3) speculative derivatives known as options: It depends on the type of specific plans to market entry and exit, and is determined by the percentage of loss could be incurred prior to the start of speculation, the most important characteristic of this system is that it is processing plans and access to the market, and currently sells consulting firms in this tablets magnetic field or CD by those plans could cost up to 250 thousand dollars per magnetic, and the speculators in this area of major companies in this kind of speculation is the link between exchange rates and other variables, such as oil prices or gold prices, or prices of commodities such as a Wheat and others. 4) speculation reciprocity: This type is limited to owners of companies import and export; where speculation on the stability of the currency value, the source of profit and importer of the total change of the exchange rate for import and export operations together. Historical background May wonder why not known FOREX when compared to trade stocks and commodities, which began in its current form since almost more than a century. The reason is the novelty of the Covenant. After the Second World War and in 1947 was signed between the victors Convention on the "Bretton Woods" to arrange conditions Allaguetsad global Among items this Convention was the assessment of currencies against the dollar as a substitute for gold help build the war-ravaged countries in Europe debilitating, and of the most important results of this decision is the stability of exchange rates and with minimum fluctuation against the dollar and against each other. There was no room for trading currencies which are based mainly on the exploitation of currency fluctuations against the dollar. But in the in 1970 as a result of the difficult economic conditions experienced by the United States decided to American President Richard Nixon its famous disengagement between the dollar and the currencies of Europe and Japan, which has been on the currencies of Europe and Japan this decision severely affected, making quick swings up and down under the influence of policy and economy of each State of these States, under the influence of strength or weakness of the dollar and the American economy, and this history emerged this market at one time in the United States, Europe, Japan and other countries. But the result of the recent market weakness on the means of communication other hand, it was impossible for the banks and other major financial institutions trading in this market immense magnitude. But with the continued and accelerated development of the means of communication and the rapid spread of computer use, and with the Internet revolution is enormous, since individuals can no more than the simple trading currencies and benefit from the opportunities to make profits, leader of the fictional and very quickly. As sees the currency market is the most modern markets among other financial markets, which makes it a mysterious and unknown to most people who are accustomed to trading in stocks and commodities for decades as far from the people who originally Aitaamilon any of the financial markets. Why people buy currencies of other countries? When a dealer from Egypt, for instance, the purchase of goods from Japan, it has to pay the value of the goods accepted by the seller Japanese currency, the Japanese often the seller will not accept that the price of goods is happening in Egyptian pounds, but wants to receive the price of his goods either currency (yen), or currency accepted in most countries of the world, such as the dollar or the euro or pound sterling. Here is not only to Egyptian trader to replace its own pounds to the purchase of American dollars sent to the seller against Japanese goods bought by him. If the trader said that the dollar buys and pays an interview pounds. Similarly if a person wants Arabs to travel to one of the European countries for tourism for example, must buy local currencies common European currency (euro) payment to be able to buy the goods and services in European countries, which he will visit. And if someone wants an Arab investment in Britain bought the property or contributed For example, the value of these investments paid must be paid or the value of the pound sterling currency acceptable to the seller quoted the English example, it must be replaced if the local currency and buy sterling. This is the most important reasons that drive someone to buy another currency .. Trade, investment and travel. This applies to the States as it applies to individuals, including exchange States goods and services and perform a sale order that the State could pay for the imports, he should be paid the value of the currency of that State or currency accepted that State, therefore States have always buy because currencies of other countries. As well as for investments States and financial institutions that invest in the State of the value of these investments paid States, which invests in currencies or currencies such as the dollar and accepting the euro and the pound. Is now learned Why is the currency market is the largest in the world? This is because there are millions of trade, investment and travel situations occur every day and everywhere throughout the world, if there is a continuing need for the purchase and sale of currencies every day in all parts of the world, from here it is the circulation daily, fewer than 2 trillion dollars .. !! This figure represents a tremendous value of currencies are bought and sold every day in various parts of the world. As mentioned, the main reason why people and nations who buy and sell currency is trading, investment and travel that are between individuals and nations. The purpose of obtaining work in another State are all past cases of the use of this currency in exchange of goods and services between individuals and nations. People buy another currency is not out of love ..!! But because it enables them to obtain the goods from another country, or that people buy and sell currencies as a tool for the exchange. But how do buy what? And that the pay equivalent of another currency .. Must you have one day to go to shops and Exchange you swap your local currency in exchange for another currency eg dollars. You so you sell your currency and buy the dollar. Of course, to buy something, he should be known as the price .. And also when you want to buy a currency must know that the price of another currency.