Forex for Beginners

Forex for Beginners

What is Forex? Forex is short for Foreign Exchange; ie exchange, international currency exchange (currency). The Forex is the most liquid market in the world. It is estimated that are traded daily contracts representing total volume between 1 and 3 trillion dollars. This is a value many times greater than that of all the bags together world. About 5% of the movement are due to companies and governments, and the other 95% are due to banks and other financial institutions such as investment firms, brokers, pension funds, etc .. Today, with the technological development and the increasing globalization of financial flows, anyone can trade currencies in the Forex market, the Internet. Before, only governments, companies and financial institutions participating in this market. Posted by carlosonlinerio at 19:26 A comment: Send by email BlogThis! Share on Twitter Share on Facebook Share with Pinterest

What should I do to start trading in Forex?

The quickest and easiest way for the average investor, "trader" - term inglês-- start negotiations in Forex is through a broker (broker), the Internet. Simply access the website of a broker and sign up to get login and password and make the minimum deposit. Most offer free platforms, which you must download to your personal computer or notebook and some also offer applications for Pocket PCs and smart phone version. In some, you can also negotiate the site. Through the platform, the investor can follow in real time the price of the currency pairs viewing charts, receive news about the economy, and other features. Before you start trading with real money, it is advisable to train with virtual money account in order to get some experience in this market and become familiar with the platform of the broker. Often brokers also offer virtual account training.     The deposit amount for you to start trading in Forex depends on each broker. The most common is the value of $ 100. However, some brokers allow smaller values. The form of more practical deposit is through international credit card (in some cases you can use national card). Using this medium, within minutes the money will be available in your account and you can start trading on the Forex. Brokers, however, provide other forms of storage. The Forex is not an activity regulated in Brazil, but there is no illegality in operating in this market, as well as foreign exchange or purchase goods abroad. How are located abroad, Forex brokers are subject to the regulations of the country of origin. Some have websites in Portuguese - usually (.uk) - and even telephone service with number in Brazil, which makes it much easier. In many, you can order through the website or e-mail, the broker call for you, and also service via chat. Consider all these options when making your choice. A profit, just ask sending the money to your checking account. * Warning: Keep in mind that investor (trader) Forex is who operates directly in the market through a broker or other financial institution. Some people try to raise money by promising a certain profit for them to operate in the Forex. What these people do is to pass on part of the profits, which might have. It turns out that they, rather than profit, come to take losses, as will hardly compensate investors. It is illegal and unsecured business. The Forex is a market with high profit possibilities and also losses. profit or loss results depend on the investor's ability and market behavior. As the Forex work? The Forex is an OTC market. There is no physically structured based anywhere in the world. There is no centralized operation, but a network of institutions operating in it. Transactions are conducted directly between the parties by telephone, electronic systems and Internet. The Forex is operated 24 hours a day, so almost uninterrupted, about 22:00 (GMT) on Sunday until 22:00 (GMT) on Friday. The period of greatest activity, however, occurs during operation in Europe, a period also increased volatility of this market. Each currency has, at any time, its exchange rate, a price against other currencies. In Forex, currencies are presented in pairs, the first being the base currency and the second, its counterpart. The operations are defined in terms of the base currency. Take for example, the EUR / USD (euro / dollar). So, if you think the EUR will appreciate against the US dollar, you enter a buy position; if, on the contrary, believes that the EUR will fall against the USD, comes with a short position. The interesting thing about Forex is that you can profit from both the appreciation of a currency, as well as its devaluation. Just keep in mind that when a currency has appreciated in price pair, the other has decreased price. Also, it is not necessary that you have to sell before, as with the stock. Although your account at the brokerage is, for example, in US dollars, you can get in a sale of trading in EUR / USD, ie sell euro. As can also enter a trade in EUR / CHF, EUR / GBP or any other currency pair. Posted by carlosonlinerio to 17:16 A comment: Send by email BlogThis! Share on Twitter Share on Facebook Share with Pinterest Major currency pairs in the Forex. EUR / USD ....... euro / US dollar USD / CHF ....... US dollar / Swiss franc USD / JPY ........ US dollar / Japanese yen GBP / USD ....... sterling / US dollar USD / CAD ...... US dollar / Canadian dollar AUD / USD ...... Australian dollar / US dollar EUR / CHF ....... euro / Swiss franc EUR / JPY ........ euro / Japanese yen EUR / GBP ....... euro / sterling Posted by carlosonlinerio at 16:59 No comments: Send by email BlogThis! Share on Twitter Share on Facebook Share with Pinterest How much is a pip? The value of a pip in a negotiation varies depending on the traded currency pair and the value of trading. Below is the value of a pip in US dollars, the main currency pairs considering the amount of $ 100,000. EURUSD USD 10.00 USDCHF USD 8.00 USDJPY USD 9.06 GBP TO USD USD 10.00 USDCAD USD 7.92 AUDUSD USD 10.00 EURCHF USD 8.00 EURJPY USD 9.06 EURGBP USD 17.98 Note that a trade of $ 100,000, the value of a pip in EUR / USD is 10 US dollars. Then, opening a purchase negotiation with this amount, this pair to 1.3546 and close the position when the price reaches, for example, 1.3556, you will have obtained a profit of 100 US dollars. With this same variation the amount of money involved in trading was 10 thousand US dollars, each pip worth one US dollar and you would have profit of 10 US dollars.       * To facilitate understanding not consider the value of the spread in the examples above. 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