Differences between forex and the stock market.
Differences between forex and the stock market.
All those who are tired of the volatility of stocks, surges in oil prices, precious metals and futures should pay attention to the Forex cash market.. The turnover of funds in the foreign exchange market is at the level of approximately two trillion dollars a year. Stock exchanges operating in the global securities market cannot boast of such figures..
Forex functions by exchanging currency rates and making international payments. You can trade on this exchange only by performing a double exchange of currencies, buying one currency, selling another. Any currency can be exchanged, of course, the most popular currencies are the dollar, euro, yen, British pound and Swiss franc.
No commission is charged for Forex trading, there is only a certain entry cost. The volume of liquidity has no boundaries. Trading on the currency exchange is always open and does not depend on the time of day, days of the week and holidays, which is very convenient. Uncontrollable losses are very rare.
Work better in a trending market, currency trends are long-term and can be extended for several years. Basic tools -technical analysis, human behavior, currency movement. In order to trade successfully, you need to remember about the fundamental points that have an impact on this market.:
• The first is the change in interest rates by central banks, the size of government debt and the budget deficit, which lead to an increase in interest rates.. An increase in interest rates has a positive effect on trading and is a positive factor for the currency, which also fundamentally distinguishes Forex from other stock markets..
Forex for beginners 09.06.23
• Next is a log of tracking the Gross Domestic Policy of the country.
• And also everything related to world politics and economics also has a huge resonance on the currency exchange..
Any trader working in the stock market has his own individual tools and his own approach to work. Only the basics remain unchanged, which become available to anyone who has completed the introductory course.. The introductory course allows you to assess your capabilities, decide whether it is interesting to you and gives you the opportunity to get acquainted with the peculiarities of the foreign exchange market. The exchange has created many educational tools that can be found on the Internet..
Companies working in this direction create schools for traders, organize distance learning, open demo-accounts where you can try yourself as a trader. The most important thing in choosing training is to correctly determine the criteria of the training itself. You need to know that theory and reading literature will not give you much chance of becoming a successful trader.. You need to choose your guide - a practitioner who is ready to share his experience, teach the sequence of actions.
There are a lot of absolutely incredible rumors about the Forex market.! Information is distorted and sometimes it is not easy to understand what is true and what is fiction. Reliable information can be obtained only from active analysts and traders working in the market.
Forex (FOREX) — foreign exchange - meeting point of currencies
There is an opinion that trading on Forex through a dealing center and trading directly seven days a week - same. This is not entirely true:
Forex trading through DC - these are currency exchange operations, which include margin trading. There is an opportunity to use trade "with shoulder" when dealing with money. Exchange in progress (not trade) currencies. The price is not limited by anything, it is formed due to demand. On the currency exchange there are registered transactions in which international currencies are involved.
Market, operations
Forex history
For quite a long time, Forex was closed to the world from-for financial insufficiency, since the minimum lot was 70000 dollars. But time does not stand still, and with the development of information technology, with the advent of the Internet, the number of bidders has increased. Although this increase was not large, and even then only among people with large capital, everything can be solved.
Experts just found such a solution and suggested using margin trading. Such trading makes it possible to take out a loan for a short period of time, and the trader s security deposit was given against bail.. It turned out the following: the trader s deal could be credited, and it 5, or even in 300 times exceeded the trader s own savings. Below is the following scheme for such a trade..
1. An account is opened in a dealing center or in a commercial bank.
2. The account was given the opportunity to quickly lend with financial leverage.
3. Access to quotes was provided in real time.
4. Trader (speculator) makes a deal on the exchange of any currency pair with a forecast for a decrease or increase in the rate.
5. After closing the deal, the difference between the rates is the profit.
Features of the Forex market
1. Forex market-world interbank foreign exchange market. Created by a network of large banks that exchange currencies at free quotes. Formed in 1971 year after the adoption of the refusal for fixed exchange rates by groups of countries and they also adopted floating rates of these currencies (the floating rate is as follows: demand/sentence).
2. No bigger market than Forex. The trade turnover of this market surpasses all others in 10 once. Also, in terms of liquidity, it surpasses all others.. on the currency exchange, the commodity itself is money and contracts.
3. Forex has its own peculiarity, it is not a market as such in our understanding, because there is simply no specific place for trading.. All operations go through terminals around the world.
4. Forex can be traded 24 hours and 5 days a week. Weekend - Saturday and Sunday as well as world holidays such as Christmas and New Years.
5. Forex gives complete freedom of action, traders opportunities are greatly expanded. That is why there is margin trading on the market and thanks to it anyone can start trading even with a small capital of several dollars..
