Forex Xe | Forex Card
What is Forex?
Forex is the acronym for "currency market", plus known as the Portuguese currency market. The currency is the financial circulate similar to the largest dimension and the highest liquidity in the world, subsequent to more than 4 billion dollars a morning in want ad movements. The size of the foreign disagreement push is such that the trading volume of the further York deposit quarrel does not even achieve 2% of those realized in the currency.
Currency pairs and clash rate
In forex trading in the manner of currency pairs (cryptomoedas and more). By analyzing the EUR / USD row rate, you can look how many USD (listed or secondary currency) you compulsion to purchase 1 EUR (base currency).
Therefore, if the difference of opinion rate of the EUR / USD currency pair is 1.2356, this means that each euro can buy 1.2356 dollars.
If the quarrel rate increases, it means that the base currency has strengthened neighboring the subsidiary currency. If the dispute 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 quarrel promote is considered the most liquid publicize in the world. Basically, this means that you can purchase any currency whenever you want, as long as the promote is open.
- full of life and decentralized: the foreign exchange make public is a working and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, upset the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading on the foreign squabble shout from the rooftops is the number of hours of operation; The foreign difference of opinion puff is approach 24 hours a day, five lively days a week, which makes it unconditionally attractive for many traders.
What are the factors that discharge duty the foreign argument market?
As currency transactions are immediate, the price of foreign dispute is affected by the action of supply and request and, consequently, by speculation.
Thus, stability and the political and economic events, as competently as the monetary policy of the countries, are elements that describe the contributions.
- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly produce a result the price of a currency by adopting sure economic procedures and announcements. For example, a rise in assimilation rates in the US Federal reserve would enlargement the value of the US currency.
- Political, social and economic events. If Forex participants recognize that a social event, can fake the political, economic or natural further details or grow less in a currency, they will change the spread around price as soon as its operations that provide tweak and request for the currency concerned.
The more people bow to that a consistent trend is followed, the more it will undertaking shout out prices, as this will reflect present sentiment.
Recent major happenings such as Brexit or the US elections directly and quickly influenced the value of currencies.
Reports of economic and social organizations. Debt analysis later the IMF, large loans from the EU or the health of the industry in a given country (especially the big powers), as with ease as data on unemployment and inflation, yet pay for a more translucent vision of what might happen on the markets and in the economy, consequently it along with has a rather accentuated weight below the currency.
What should I reach once I trade in the currency?
Forex Trading always involves trading afterward a currency pair. For example, if you think the pound sterling (GBP) will value neighboring the dollar, you should purchase the GBP / USD currency pair.
If, upon the contrary, we expect a devaluation, that is to tell that the dollar will strengthen, he will have to sell the currency pair he has.
The first deed is called the buy position, which means that the trader wants to purchase the base currency (GBP) and sell the supplementary currency. In the second, the operator would open a sales viewpoint to sell the pound sterling (GBP), the base currency.