Understanding the Forex Market
60
FOREX (Foreign Exchange Market) is the market exchange of foreign currencies. In Brazil it is known as inter-bank negotiations, where money is sold and bought freely via the internet.
Forex is the largest and most liquid financial market in the world. According to various assessments, the money market today comes at a daily average of $ 1 to $ 1.5 trillion dollars in trading volume. Transactions are conducted all over the world online 24 hours a day, starting at 17:00 PM EST (New York) Sunday until 17:00 PM EST (New York) by Friday, operating in virtually all areas (ie, Frankfurt, London, New York, Tokyo, etc. ..)
Advantage and bargaining power of the FOREX market are;
• Highest number of participants and volume of transactions.
• Liquidity and gear on the market. The transactions are conducted within a few seconds.
• The market works 24 hours (20.00 pm GMT Sunday until 20:00 pm GMT to Friday).
• Power to do business at any time of day or night anywhere in the world.
• The investor can open a position for the entire period.
• No fee to be charged, except the difference between purchase prices and sales (3 to 5 pips).
• An opportunity to acquire a larger profit on their investment.
• The skilled work in the FOREX can turn this into a new career.
For the beginners in the FOREX market, the following guidelines cover some of the main foundations of currencies.What is FOREX.
A - Account Statement is designed to help investors to gain familiarity with the speed, technical, analysis, indicators and movements in the market.
B - Îstude, study, study% D. Investors use the FOREX Fundamental Analysis, Technical Analysis, Quantitative Analysis and sometimes a combination of all three to take the decisions.
Fundamental analysis involves the use of economic news, financial policies and to determine some decisions.
Technical analysis involves the study of charts to predict future price movements based on past price patterns and trends.
Quantitative Analysis is the use of pre-specified statistical models and properties in quantifying price formations such as averages (retracements) and also identifying signs (overbought or oversold).
C - Manage your money wisely. You must always watch the amount of money in your account before placing it in trading. If you think a long-term trend is developing, then you should check whether you have sufficient funds to maintain its margin and can resist any move against their position that will occur. Make some basic questions before they open or close a position:
1) How can I risk?
2) How can I earn?
3) What direction will the market take?
4) What is the market condition? (The market is volatile or calm?).
D - Stay connected with the market, acquiring information and daily results.
E- Open a real account, when you feel ready and safe to invest in this market.
PrintShare it! — Rate it: up down flag this hub








