The foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world. Some of the participants in this market are simply seeking to exchange a foreign currency for their own,like....
Actually the existence of forex trading has long been available since the discovery of techniques to convert a country's currency into another country's currency. However, the new institutionally there after an arbitration body set up futures contracts (futures). An example is the IMM...
Make the trend as your sidekick (Trend Follower). Do not fight the market trend (though not including mandatory rules). If prices are rising, you can install Buy position and vice versa if the price is down then you can install Sell position. Most people often take the opposite (counter trend) and often wrong - though there is also often true...
is an investment that trade one currency with another currency. Is an abbreviation of Foreign Exhange or exchange foreign currency. If the transactions in the money changer or bank for the sale and purchase between the U.S. Dollar to Rupiah, so-called Forex transactions 'Spot' (buying and selling occurs in place - the handover takes place)...
Actually the existence of forex trading has long been available since the discovery of techniques to convert a country's currency into another country's currency. However, the new institutionally there after an arbitration body set up futures contracts (futures). An example is the IMM (International Money Market, founded in 1972) which is a division of the CME (Chicago Mercantile Exchange-specific product handling perishable commodities). Another example is the LIFFE (London International Financial Futures Exchange), TIFFE (Tokyo International Financial Futures Exchange).Turnover that occurs in the forex market reaches U.S. $ 5 trillion per day (survey BIS-Bank for International Settlements, in Sept, 2008). This amount is 40 x higher if compared to the velocity of money on such commodity futures exchange or any other stock market in each stock exchanges of any developed country! This means that the trading volume of that size, this market is very liquid (liquid), and control of trafficking can not be held by only a few parties who have big capital. Currency movements are entirely dependent on the market. There are many large and small players in forex trading, but none of them are able to control the movement of foreign exchange rates.
Frequently traded currency is the currency in the developed countries like the U.S. dollar (USD), Japanese Yen (JPY), Swiss Franc (CHF), British Pound (GBP), Australian Dollar (AUD) and Euros (EUR). All currencies are traded in pairs (called a pair), for example EUR / GBP, CHF / JPY etc.
Then from where I obtained a benefit from this investment? In simple, the benefits of this investment is obtained from the value of the difference when we buy and sell back the currency of the country concerned. For example, in April Amir purchase Dollars with the exchange rate of Rp. 8500, - per dollar of U.S. $ 1000. So at the time of purchase this currency Amir to pay as much Rp. 8500, - x 1000 = USD $ 8.5 million, - Then in May, the dollar strengthened against the rupiah to Rp. 9500, - per dollar, the net profit that Amir got when he sold the dollar return is: (9500-8500) x 1000 = Rp. 1.000.000, - Easy and simple is not it? And because the average time it takes to buy and sell back the currency in question is usually no more than one month, then the forex trading are classified as investments with short-term.
Perhaps such questions will arise from you: "Then what's the difference with buying and selling of forex trading at money changer?" There are some striking differences between forex trading with money changer. In addition to the trading partner is a foreign currency with foreign currency (at the money changer is usually paired with the amount), forex trading does not involve physical trade. And more importantly because it does not involve physical trading, forex trading can be run with system margin or collateral (margin trading).
For example if I want to buy U.S. $ 10,000, then the margin trading system with me enough to spend just 1% amounting to U.S. $ 100 as security. But the benefits I get from the appreciation (increase) the U.S. Dollar is equal in value to U.S. $ 10,000 which I bought. Very simple and because it does not involve trading in physical form (investors do not hold the currency bought or sold, only evidence of the transaction only), then the guarantee given to very small: only 1% of the amount that would be purchased.
Source : belajarforex.com
1 Comments:
Wow..thanks for that information. happy blogging guys,succes for us :)
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