foreign exchange market traduccion

Forex and currency market


Forex and currency market



foreign exchange market traduccion, Forex and currency market, Forex


The foreign exchange market (Eng. Foreign Exchange, Forex or FX) is a global decentralized market for the currency market. It represents one of the largest and most liquid financial markets in which central banks, banks, financial institutions, governments, corporations, insurance companies and individual investors involved. The market of foreign money is available 24 hours a day, except weekends, especially due to the large trading volume, high market liquidity, global distribution, due to a large number of different factors influencing price changes of currency pairs and potentiating effects able to use (leverage). In such a market, the profit is made by buying and selling of currencies of different exchange rates.


The foreign exchange market (Eng. Foreign Exchange, Forex or FX) is a global decentralized market for the currency market. It represents one of the largest and most liquid financial markets in which central banks, banks, financial institutions, governments, corporations, insurance companies and individual investors involved. The market of foreign money is available 24 hours a day, except weekends, especially due to the large trading volume, high market liquidity, global distribution, due to a large number of different factors influencing price changes of currency pairs and potentiating effects able to use (leverage). In such a market, the profit is made by buying and selling of currencies of different exchange rates.

The foreign money market is difficult to compare with other areas of global financial markets, mainly due to high sensitivity to a number of factors. Prices in the foreign currency market are constantly changing.


 Changes in exchange rates are usually caused by actual cash flows, ie. This form of exchange rate based on supply and demand, but also exchange rates are very sensitive to news from the fields of economy, politics as well as news of natural disasters. Since this market is not centralized, avoiding the possibility that the impact of central banks. Market purchase of foreign money is available all day, except on Saturdays and Sundays. In our time negotiating rested on Sundays at 22:00 and end at 22:00 on Fridays. The main shopping center is located in London and New York, Tokyo, Hong Kong and Singapore are also important centers through which trade foreign money.


Such an arrangement of shopping centers, to trading 24 hours a day, trade centers begins in Asia, then the market occupies a central place in London and New York, and then Asia.


currency pairs


In the forex market trading currency pairs, ie. the conversion of one currency to another is performed at different prices. Currency pairs are represented as a combination of two three-letter abbreviations as XXXYYY or YYY / XXX where XXX and YYY abbreviations of currencies which are expressed as a three-letter code for the internationalization of the currency (ISO 4217). The first currency (Currency) in the pair is called the base currency, eg EURUSD the base currency is the euro, also known as the first or main currency, and the second or secondary currency is USD. When a currency pair EURUSD price of the euro expressed in US dollars and amounts of 1.5092 it means that for 1 euro 1.5092 dollars can get. The first currency in a currency pair usually has a higher value than the other.


In foreign money Exchange, the price of a currency pair over time changes the value in minutes. In periods of intense negotiations, within a minute, the price may change the value of several tens of times or even a hundred times. Changes in prices in most currency pairs is followed in the fourth (0.0001), and in which currency pairs are traded against the Japanese yen after price changes in the second (0, 01).


Trading in the forex market


foreign exchange market traduccion, Forex and currency market, Forex























Trading on the Stock Exchange of foreign money has specifically by the negotiated amount. Changes in the exchange rate between the two currencies are generally relatively small, in some cases, price changes only in the third, fourth or even fifth decimal place. Therefore, the traded quantities should be high enough to be able to make profits in a small difference in price. The term "batch" refers to the amount of 100,000 units of currency used to conduct commerce, and the amount of the trade (size) generally is performed is expressed in the batch number on investment. When operating in a market like this, it is common for brokerage firms allow investors to trade than the quantities available in the account, that is. To use the leverage (leverage).

Trading in financial markets represents a series of successive operations that are used for the sale or purchase one of the currency pairs available to current market price. The goal of trading on a market is as achieve gains in foreign exchange at different prices. A (commercial) transaction in the currency pair starts opening position (in the direction of buy or sell) and ends the closed position. This type of action starts to say the open position. Exchange a certain amount of one currency for an equivalent amount of another currency in the current c1 (the price at the time of the opening positions). When opening a position, the user selects the currency pair, the type of transaction, ie, whether to make a purchase or sale (buy or sell) and the negotiated amount. This transaction completes the currency conversion in the opposite direction, ie. Closing position when the amount received from other currencies is converted at a price of c2 (the price at the time of closing the position) in the first currency. The difference between the price of c1 and c2 represents the gain or loss on the trade. Besides the differences in price, size of the profit (or loss) depends on the amount traded. Price at the time of opening the position is called entry price. The price at which another interruption of trade is called the stop price.


In the exchanges on which shares are traded, the profit is realized when some of the stocks to buy at a lower price and then sell at a higher price, then that would be a benefit requires high stock prices. Exchange gains on foreign currency when the price growth can be achieved but also when falling prices. This possibility exists because when opening a position of choice on a commercial basis, it is possible to open a position in the direction of buy or sell address. In positions in the direction of purchase, the price difference is calculated as (C2-C1), ie. Profit price at the time of closing the position (c2) must be greater than the price at the time of the position (C1) opening. In positions in the direction of Sale, the price difference is calculated as (C1-C2), ie make a profit, the price at the time of closing the position (c2) should be less than the price at the time the open position (c1).

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