Lesson 1. Forex brokers. Forex Exchange
Back in the early 1970s, the price of currencies of different countries in the world defined by the gold reserves of the country - in a world ruled by the gold standard. Each had its own currency equivalent, expressed in gold. But that all changed on the gold exchange ruling refused, and people introduced floating exchange rates - currency price is now determined solely by its supply and demand. This is how the international foreign exchange market - Forex.
Forex currency of one country is sold for a certain number of units of the currency of another country. I think is hard to see how the money can be sold for money, so you can think of currency as a security that gives you the right to share in the economy of the corresponding country. The health of the economy is always determined by the stability of its currency. Summing up, trading on Forex, we can say particles are trading economies of the world.
Why Forex is unique? Forex can be compared with the market, which can at any moment to buy or sell anything. You have brought to this market goods and immediately found him a buyer for a mutually beneficial price. This - the characteristics of a good high liquidity of the market. Liquidity just means that you can sell or buy a product at any moment on a mutually beneficial price, or exchange goods for money, and the money for the goods. What is necessary for a perfect market? To begin with - fair competition and the absence of a monopoly, and of course a huge number of participants. Just need round the clock. This is - the basic requirements for an ideal market, although you can list a lot more I could write a thesis on this subject. But this is not important, we just need to understand that Forex - the most highly liquid market in the world!
Forex trading has amazing pace - 3 trillion (!) U.S. dollars a day. Everyone can trade forex. To do this, start-up capital and access to the Internet. Given the huge number of participants is unrealistic none of the banks of the advanced countries of the world can not be for some time alone to influence the supply and demand of the proposed exchange. The processes that affect the supply and demand - it's normal processes in the economy of all countries. There is in them an unexpected and regular. You must learn to understand and at the right time to respond to changes in these processes is an important part of knowledge about the trade - known as fundamental analysis.
Forex does not have a specific location. Forex trading takes place every second. Active trading of certain currencies depends on the time of day, because of the work of the greatest centers of (financial).
In the Forex market has a number of advantages when compared to other markets, such as with stock. Hour forex makes it the most highly liquid market in the world. Internet has led to the emergence of exchange intermediaries that offer individuals an opportunity to earn on Forex. Thanks to a good competition between them to create a very good environment for forex robots. .
First, we need to understand what is - a private investor in the global currency exchange. If we study all types of participants in the forex market, it will help to understand how the changes in exchange rates in the world. In the picture a simple diagram of the interaction of characters in Forex.
The main participants Forex - commercial banks. These banks make the transaction of purchase, sale of foreign currency, both from themselves and from their customers. Or to place orders directly with other banks or through brokerage firms. They work as follows - dealer department of a commercial bank wants to buy the currency they are interested, get in contact with the brokerage firm and find out what the deal offer other banks. Having come to an agreement they conclude the transaction through a brokerage firm. Thus, the brokerage firm is a central place, and they make their mediation.Some of the major players forex, central banks around the world. The central banks of the developed together sometimes when they want to reach a common goal.
There are at foreke and passive participants, they include investors and investment funds. They use their own funds to purchase securities in various countries.Eats and other passive participants in the forex market, it is the participants of foreign trade operations. These companies are responsible for the import and export of currencies. There are also some international companies are also passively participate in the foreign exchange market, the companies that have branches abroad.
Next we consider the role of the private investor in the forex market. Such investors may not participate in the bidding through a brokerage house. For such investors appeared commission house. Margin Trading, private investors may trade in the tens of times greater than theirs capital, while only risking your money. Nowadays, everyone can try to trade forex with a small bag of pocket. Do not rush to open a real account. Open a demo - account where you will be able to begin to learn from and prepare for the robot for real money.
So what does that such conversion operation? This is a bargain between the parties Forex exchange a certain amount of currency of one country's currency for another country. These operations on Forex vary the value date. Therefore, conversion operations, we can divide into two categories (see figure)
Operations such as the (spot) on the forex market, account for the largest obem.I we will consider the work on Forex is for the transaction. Value date spot transactions (spot) is on the 2nd business day after the transaction is concluded. Thus quality is very convenient for contractors (those who are involved in the transaction) because there will be times during the first and the next day to do all the necessary documentation for the work. This type of settlement (spot) is only suitable for large parties forex. Private investors have the advantage ihni transactions are made instantly, with one click. Therefore, for private investors such term as the value date is not needed and is losing its meaning.
There are also conversive operation called forward, futures, options and swaps. In obscheh all of them can be called - derivative - financial instruments (derivatives). All of these tools have been developed for business, thanks to the fact that they reduce the risk of changes in quotes in the forex market. They have little value to a private investor who wants to make money on forex, but we still consider them to understand the full picture of forex trading.
And so it is for contracts (forwards) and who concludes from? It's very simple. If you simply put, that are concluded between parties who have agreed to exchange certain amount of currency (agreed in advance). After the exchange of the contract will be accomplished in spite of changes in the prices in the currency market. Contractors can come to any agreement on these points: the amount of the transaction, quotes, and of course the date "valyutirovaiya".On the one hand forwards contracts may reduce the percentage of risk, but also because it is possible to miss a profit.
Operations such as (futures), forwards differ from those that have standardized maturities and fixed size and the amount of currency. This gives them the opportunity to be Bartered as a valuable paper. Operations (futures) have their own store called (futures market).
Operations (options) are very similar transactions (futures), only one of the parties to the transaction have weakened commitment. In the (futures) you have to bring the deal to the end, and in the (options) you can reject it. Operations (options) have their own market called (options market).
There is also a type of operations as (swaps) - in this part of the operation as well as in the rest of bargain purchase / sale, but this time they undertake to enter into a reverse transaction after a certain period of time. Swaps have its own market as they are not standardized.If you are self-employed, the highest priority should be given to you as the transactions (spot) on the spot market (spot market). And that is what we are going to do in our next lessons.
Back in the early 1970s, the price of currencies of different countries in the world defined by the gold reserves of the country - in a world ruled by the gold standard. Each had its own currency equivalent, expressed in gold. But that all changed on the gold exchange ruling refused, and people introduced floating exchange rates - currency price is now determined solely by its supply and demand. This is how the international foreign exchange market - Forex.
Forex currency of one country is sold for a certain number of units of the currency of another country. I think is hard to see how the money can be sold for money, so you can think of currency as a security that gives you the right to share in the economy of the corresponding country. The health of the economy is always determined by the stability of its currency. Summing up, trading on Forex, we can say particles are trading economies of the world.
Why Forex is unique? Forex can be compared with the market, which can at any moment to buy or sell anything. You have brought to this market goods and immediately found him a buyer for a mutually beneficial price. This - the characteristics of a good high liquidity of the market. Liquidity just means that you can sell or buy a product at any moment on a mutually beneficial price, or exchange goods for money, and the money for the goods. What is necessary for a perfect market? To begin with - fair competition and the absence of a monopoly, and of course a huge number of participants. Just need round the clock. This is - the basic requirements for an ideal market, although you can list a lot more I could write a thesis on this subject. But this is not important, we just need to understand that Forex - the most highly liquid market in the world!
Forex trading has amazing pace - 3 trillion (!) U.S. dollars a day. Everyone can trade forex. To do this, start-up capital and access to the Internet. Given the huge number of participants is unrealistic none of the banks of the advanced countries of the world can not be for some time alone to influence the supply and demand of the proposed exchange. The processes that affect the supply and demand - it's normal processes in the economy of all countries. There is in them an unexpected and regular. You must learn to understand and at the right time to respond to changes in these processes is an important part of knowledge about the trade - known as fundamental analysis.
Forex does not have a specific location. Forex trading takes place every second. Active trading of certain currencies depends on the time of day, because of the work of the greatest centers of (financial).
In the Forex market has a number of advantages when compared to other markets, such as with stock. Hour forex makes it the most highly liquid market in the world. Internet has led to the emergence of exchange intermediaries that offer individuals an opportunity to earn on Forex. Thanks to a good competition between them to create a very good environment for forex robots. .
First, we need to understand what is - a private investor in the global currency exchange. If we study all types of participants in the forex market, it will help to understand how the changes in exchange rates in the world. In the picture a simple diagram of the interaction of characters in Forex.
The main participants Forex - commercial banks. These banks make the transaction of purchase, sale of foreign currency, both from themselves and from their customers. Or to place orders directly with other banks or through brokerage firms. They work as follows - dealer department of a commercial bank wants to buy the currency they are interested, get in contact with the brokerage firm and find out what the deal offer other banks. Having come to an agreement they conclude the transaction through a brokerage firm. Thus, the brokerage firm is a central place, and they make their mediation.Some of the major players forex, central banks around the world. The central banks of the developed together sometimes when they want to reach a common goal.
There are at foreke and passive participants, they include investors and investment funds. They use their own funds to purchase securities in various countries.Eats and other passive participants in the forex market, it is the participants of foreign trade operations. These companies are responsible for the import and export of currencies. There are also some international companies are also passively participate in the foreign exchange market, the companies that have branches abroad.
Next we consider the role of the private investor in the forex market. Such investors may not participate in the bidding through a brokerage house. For such investors appeared commission house. Margin Trading, private investors may trade in the tens of times greater than theirs capital, while only risking your money. Nowadays, everyone can try to trade forex with a small bag of pocket. Do not rush to open a real account. Open a demo - account where you will be able to begin to learn from and prepare for the robot for real money.
So what does that such conversion operation? This is a bargain between the parties Forex exchange a certain amount of currency of one country's currency for another country. These operations on Forex vary the value date. Therefore, conversion operations, we can divide into two categories (see figure)
Operations such as the (spot) on the forex market, account for the largest obem.I we will consider the work on Forex is for the transaction. Value date spot transactions (spot) is on the 2nd business day after the transaction is concluded. Thus quality is very convenient for contractors (those who are involved in the transaction) because there will be times during the first and the next day to do all the necessary documentation for the work. This type of settlement (spot) is only suitable for large parties forex. Private investors have the advantage ihni transactions are made instantly, with one click. Therefore, for private investors such term as the value date is not needed and is losing its meaning.
There are also conversive operation called forward, futures, options and swaps. In obscheh all of them can be called - derivative - financial instruments (derivatives). All of these tools have been developed for business, thanks to the fact that they reduce the risk of changes in quotes in the forex market. They have little value to a private investor who wants to make money on forex, but we still consider them to understand the full picture of forex trading.
And so it is for contracts (forwards) and who concludes from? It's very simple. If you simply put, that are concluded between parties who have agreed to exchange certain amount of currency (agreed in advance). After the exchange of the contract will be accomplished in spite of changes in the prices in the currency market. Contractors can come to any agreement on these points: the amount of the transaction, quotes, and of course the date "valyutirovaiya".On the one hand forwards contracts may reduce the percentage of risk, but also because it is possible to miss a profit.
Operations such as (futures), forwards differ from those that have standardized maturities and fixed size and the amount of currency. This gives them the opportunity to be Bartered as a valuable paper. Operations (futures) have their own store called (futures market).
Operations (options) are very similar transactions (futures), only one of the parties to the transaction have weakened commitment. In the (futures) you have to bring the deal to the end, and in the (options) you can reject it. Operations (options) have their own market called (options market).
There is also a type of operations as (swaps) - in this part of the operation as well as in the rest of bargain purchase / sale, but this time they undertake to enter into a reverse transaction after a certain period of time. Swaps have its own market as they are not standardized.If you are self-employed, the highest priority should be given to you as the transactions (spot) on the spot market (spot market). And that is what we are going to do in our next lessons.
Комментариев нет:
Отправить комментарий