1 What is foreign exchange market?
Forex is acronym of the phrase in English Foreign Exchange, which means foreign exchange or foreign exchange, sometimes simpler is squeezed off fx.
The Forex market is the currency market between banks was established in 1971 when floating exchange rate are specified. The market is a range of activities in which each country's currency is exchanged, and where to do international business.
2 Characteristics of the Forex market
Forex market operates continuously throughout the day and night (24/24 hours);
Forex market is international;
The exchange rate is determined on the basis of supply and demand of foreign currency.
U.S. dollar (USD) was seen as instrumental in the currency pair cross rates.
3 Goods What is forex market?
Goods of the forex market is money. Foreign exchange trading is the trading operations purchase an amount of money and sold a number of other currencies takes place at the same time. Funds are traded through a broker or directly in pairs, for example: EUR / USD, USDJPY, USD / CAD, GBP / USD ...
4 Participants in the foreign exchange market
Banks including central banks acted organization, control, operation and stable foreign exchange market; commercial banks and investment banks involved with business goals, provide services to clients as a broker.
The broker is an intermediary entity in the transaction market.
The import and export business.
The financial institutions include non-bank investment funds, insurance companies ... risk.
Multinational companies.
The individual, the business includes domestic and foreign citizens wishing to buy and sell foreign currencies.
5 The basic business transactions on the foreign exchange market
Transactions in spot foreign exchange (spot): the buying and selling of foreign currency or that the transfer is done immediately or no later than 2 days after the contract of sale agreement.
Business professional foreign exchange (swap) is based on the professional level of the exchange rate difference between the forex market to profit through trading activities.
Transactions in foreign currency futures (forward): the buying and selling of foreign currencies in which the delivery will be done after a certain period of time at rates agreed upon contract signing.
Professional forex futures (futures) is conducting a business purchase agreement a known amount of foreign currency at the exchange rate fixed at the time the contract is in effect, the transfer is done in foreign currency a future date.
Professional Forex Trading choose the right (option): the business conducted on the basis of option contracts to buy or sell options. Option allows the buyer has the right but not obligation to buy a certain amount of foreign currency. Option allows the sale shall be entitled but not required to sell a certain amount of foreign currency. The buyer can sell the option or cancel the contract if there is no benefit. But the seller the option to perform the contract if the buyer requests.
6 What do you need to be able to participate in the forex market?
All you need to participate in the forex market trading is a computer with Internet connection and stable transmission (PC or laptop as well for ease of movement, you can sit sipping in cafe with a laptop and monitor market), you should have a basic knowledge such as knowledge about forex fundamental analysis, technical analysis. The most important thing is you have to understand yourself. Also you need to have a minimum amount of capital to invest in forex, minimum capital amount can start from 1 USD, 10 USD or 100 USD.
If you do not want to engage in a risky forex, you can learn forex and investment knowledge demo (3 months); Once you build up enough baggage to the job, you can begin to actually engage in forex market step by step before becoming a professional forex investors.
The brokerage firm where you register for an account forex trading mostly use VISA card and electronic payment systems like Paypal, Liberty Reserve, Perfect Money, WebMoney, MoneyBrookers so you can join a forex trading easily.
