Forex Tutorial
Market Forex (from the English. Foreign Exchange - exchange) - the international OTC market, which is formed from a variety of foreign exchange transactions around the world. The main market participants are both major players - the central banks of various countries, large commercial banks, multinational companies and private investors, whose access to the market exchange provides companies brokers. At the time, as the big players entering the market Forex, most often for the sake of exchange (banks, TNCs) or through foreign exchange intervention as part of the country's economic policy (central banks), individuals seeking access to the market for the sake of speculation, and receive these operations with foreign exchange earnings. Throughout the world there are many brokers market Forex, in the 1990s, they began to appear in Russia. Brokers provide individuals access to the Forex market by making transactions on their behalf and at their expense by order, which gives an individual. Transactions are carried out on buying and selling currencies. In Forex trading so-called currency pairs. After the abolition in 1978, the gold standard for currency taken to calculate the rate of national currency against the currency of another country. Sometimes, though, the dollar is calculated in national currency, such as in Russia and Japan.
The simplest example - this is the usual exchanger in which the dollars and euros sold for rubles. When people talk about what a dollar is worth thirty rubles, which means that the currency pair exchange rate USDRUR = 30. At the same time in any exchanger selling rate of dollars and buying dollars do not match. So, often you can see USDRUR = 30/31, that is, the exchanger is ready to buy dollars from customers for 30 rubles and sell dollars to customers for 31 rubles. Sale price is the price of dollars exchanger Bid, the purchase price in dollars is the price of the exchanger Ask. The difference between these two prices is called the spread. Spread - this is the main profit as heat exchangers, brokers and the market Forex.
The market attracts more investors, as it is characterized by:
Liquidity: the market operates the enormous amounts of money and provides complete freedom in opening or closing a position of almost any size at current market quotation;
Accessibility: Thanks to e-commerce systems, currency transactions, which were the privilege of large banks in recent years have become available to individuals, and is now trading on the FOREX market can be almost anyone, including those with all kinds of mobile devices;
Hours of operation: the ability to trade 24 hours a day, while trading in the stock market was suspended at the end of the day and resumed only next morning;
Much of leverage: the ability to purchase and sell foreign currencies in the presence of only a portion of the amount needed for operations. The volume of transactions can be several times the amount of contributions received. The bank or broker requires only a partial guarantee for operations;
Cost: FOREX market unlike other markets traditionally do not have any fees, except for the natural market difference bid / ask (between the purchase price and sale price, the trader offered by the bank);
A small start-up capital: The minimum amount to open an account for currency trading, tend to be much less than the stock and commodity markets;
