Forex (FOREX, Foreign Exchange Market) – is the international currency-exchange market of the converted currencies. Oscillations of their courses under the ratio to each other allow to buy currency cheaper and to sell more expensively. Thanks to development of Internet trading millions people all over the world can do the business neo accessible earlier only to banks and large corporations.

Where is Forex?

This market does not have certain location. It represents the huge network of currency dealers united by telecommunications. They are in all leading world financial centers and work round the clock, as the uniform mechanism. Quotations of currencies do not stop for a minute.

What currencies are loved by Forex?

The most liquid currencies are US dollar USD, English pound GBP, uniform European currency EUR, the Swiss franc CHF, the Japanese yen JPY. On their share the main size of all operations in market FOREX is laid.

What is the currency pair?

Currency pair, or cross-country-course, represents the traded tool of market FOREX. At transaction FOREX always trade in currency steams. For example, at transaction on currency pair USD/JPY, you trade in the American dollars against the Japanese yen. Buying dollars at the given cross-country-course, you pay in yens. Selling dollars – you receive the Japanese yens on your account.

What isa pip or an item?

Word “pip”– is an abbreviation of an English word-combination “percentage in point” (the percentage item). Pips – are minimum possible steps of the price. Quotations of the majority of currency pairs are exposed to within the fourth sign after a comma. Therefore, movement of the price of currency pair from level 1.2950 to 1.2951 makes one pips. It is possible to define cost of one pip for a concrete position. For example, knowing that the quotation on currency pair EUR/USD is given to within the fourth sign after a comma, we will increase the position size by cost of one pip which makes for given currency pair USD 0.0001. Cost of one pip under contract EUR/USD 100,000 makes USD 10.

How to earn on Forex?

If for you have 1000 USD on your account, without risking the main deposit, it is possible to conclude the bargain on a prize in 10000 USD (a prize 0,1). Expecting course change USDJPY, we buy 10000 USD against the Japanese yen at the price of 118.00. In some days course USDJPY has grown on 200 items and has become 120.00. We close a position and we sell dollars more expensively. We will define profit (or the loss) from the transaction. We will increase a difference of the prices of closing and opening by size of a prize and we will divide into the closing price. The profit is equal in our example:

(121-118) x10000/121=165 USD (or 16 % to the deposit)

Who are participants of the market?

The main participants of the currency market are central and commercial banks, currency stock exchanges, the corporations which are carrying out the foreign trade operations, investment funds, the broker companies and private persons.

How does Forex involve the private investor?

Operation on Forex is attractive by the fact that a trader operates with the market sums of hundred thousand dollars, without having the big money resources in stock. For example, for transaction carrying out at pledge in 1 % it is necessary to bring only 1000 dollars of pledge in 100 000 dollars.

Why is Forex popular?

FOREX exceeds all existing markets in sizes of the auctions, low cost of spent transactions, speed of movement of funds. It is the unique world market operating of 24 hours a day.

The choice of a foreign currency trading service is not an easy task. And one shouldn’t hurry up to make a decision on such a service.

It is very important that you follow a final piece of advice – today the web technologies give you a truly unique chance to choose what you need at the best terms which are available on the market. Funny, but most of the people don’t use this chance. In real life it means that you should use all the tools of today to get any foreign currency trading info that you need.

Search Google and other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and participate in the discussion. All this will help you to create a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.

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