الأربعاء، 17 أكتوبر 2012

What is Forex

Currency marketThe word "Forex" refers to the foreign exchange market or the global stock of foreign currency, an abbreviation of the term economic Foreign Language "Foreign Exchange Market" any "foreign exchange market", a market extends across the world, where the disposal of currency by several participants, such as international banks and international institutions and financial markets and individual traders.
Date currency marketSome researchers say that the Forex market is due to the Babylonians of the foundations and principles of hand. In those times traders were exchanging their goods compared to other materials. And when he entered the world into the age of metals, gold and silver became the most heavily traded commodities. With the entry of regimes and governments that made coins, mineral-commerce has become the most important economic means by States. Because of the magnitude of the metals market and the participation of governments which have enacted laws Fadt traders in this market which was Refine the causes of the American economic crisis in twenty and thirty years of the twentieth century.In these years (1931 in particular) Born the foreign exchange market or Forex is known today. Despite the passage of so many years but the word Forex FOREX)) still does not mean a lot of people in the world and particularly for traders and businessmen, and ignorant they fall under the branch of stock trade in the global economy.Stock markets exist in all countries of the world, and each specialization Stock Exchange and its field. In addition to the currency market there are other types of exchanges such as: gold and silver, Petroleum Exchange, stocks, bonds, agricultural and energy.There are two types of exchanges: Exchanges direct exchange Exchange
Trading and trading in the currency marketIs the buying and selling of different currencies in U.S. dollars or other currencies among themselves so-called currency pairs and against the U.S. dollar or any other currency against another currency in value. The currency trading earn from trade on the stock market

The large currency changes, multiple which helps to do some business operations in a single day. It is known that the large declines influence on financial markets, which could lead to the collapse of stocks or bonds. The forex market decline in the U.S. dollar (for example) means the price rise second currency and there is no breakdown such as stock markets or bonds.
Forex market combines four regional markets: Australian and Asian, European and American. And continue trading operations which every working day and the market closes on Saturday and Sunday, and market works around the clock 24 hours a day. The relative calm of the notes at 20:00 until 01:00 GMT, due to the closure of the New York Stock Exchange in the eighth pm and the start of the Tokyo Stock Exchange work at one o'clock in the morning. With the entry of technology and the Internet has become possible to use open accounts and trading in international markets with companies and banks did not go to them, even in all countries of the world including London and Hon Kong and the United Arab Emirates and Dubai.
Of the most important advantages of trading in the forex market as well as for rapid variability is trading on margin or aspiring Margin trade. That this trade deal with so-called (trade margin) ie you book a small amount of your account (1000 dollars) for the purchase of (100000) dollars and called Purchasing Unit (Lott) and win or lose by the movement of currency or commodity or metal you have purchased or sold it and this kind of trading (though it sounds simple) is profitable types of trading where you can earn a substantial profit within a few seconds as a result of economic news or upload and download rate of interest or a natural disaster or other causes and other economic.
One of the important characteristics of the currency market is a property of balance despite the fact that this seems strange. Everyone knows that the fundamental property of the financial market is the sudden decline. But the forex market is different from the stock market in that it does not fall. When stocks lose value this collapse. If the dollar collapsed, for example, it means only that another currency has become stronger - for example the Japanese yen, which has become in just a few months of 1998, the strongest quarter almost for the dollar. This has reached the falling dollar for some days in that period of tens of per cent. Although it did not happen the collapse of the market transactions continued as usual, in this confined to the stability of the currency market and its associated work. This is because the currency is a commodity full liquidity can be bought or sold at all times.
Some terms
- Per unit of goods Unit: a minimum can be traded item. Called "Lute" Lot- Dealing institutions that operate the system with marginal things can be traded and fixed units each unit called Lute lot.- The size of the contract Contract Size: is the actual value of the commodity company that allows you to trade him.- Double Leverage: a ratio between the value of the item that you want to be traded between the value of the bond that asks you to pay (used margin) to allow you to trade this item.The multiplier can be calculated by the following formula: multiplier = number of contracts * contract size per / user margin- Used Margin Used Margin: an amount that is deducted from your account temporary token Recovered from the item that you choose to be traded, this amount represents a small percentage of the value of the item you temporary institution Bhdzh to until the completion of the transaction. The obligation to return to your account after completion of the transaction, regardless of the result of the deal, both ended with a profit or loss.
 
Used margin is calculated according to the following equation: Used margin = number of contracts * the value of the contract / multiplier ratio -
 
Margin Usable Margin: an amount that is left in your account after the deduction used margin of it,Which is the maximum amount that allows you to defeat the deal.

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