Trading currenciesCurrencies Trading
Why work the forex market?
As I learned, there are many possible types of goods traded equities, commodities, bonds and other a lot, and each type of these commodities bourse where people choose to own one of these types of trading or some of it.
There are lots of reasons why it is trading in the currency market is better than other types of trading markets and most important of these reasons: to work on throughout the day
In direct exchange stock exchange is working for a limited period each day where the stock market opens in the morning and close in the evening.
For example:If you want to trade in shares of U.S. companies, you can not buy and sell only when the stock market opens its doors within Naiuyork at 9 am (EST EST) pm to 4 pm the same timing.
This means you are limited this time to monitor the market, which requires a full-time, and this applies to all other exchanges, each according to the timing of the state affiliates.
If you work in an Arab country and want to trade shares in the New York Stock Exchange, you are restricted to working between the hours of 4 pm to 11 pm which corresponds to the timing of opening of the New York Stock Exchange for most Arab countries.
Such a difference in working hours caused a lot of problems and difficulties in the long run.
As on the stock exchange and because it does not have a central location specific, and because the operations are done by computer networks, the work foreign exchange does not stop for the past 24 hours .. only in the last two days a week (Saturday and Sunday) ..!! Banks and financial institutions to open its doors in Japan time 12 pm GMT (8 am Japan time) begin buying and selling or closing institutions of Japan, but at 9 am GMT (5 pm Japan time) ...
But the work will not stop because it is to close institutions Japanese, Asian and most important in Tokyo and Hong Kong and Snghafforhany the European institutions, most notably in London, Frankfurt and Paris have opened their doors, and that the convergence of the European institutions to close so that American institutions have begun to work, most notably in New York and Chicago, and American institutions to close their doors until you start institutions in Australia and New Zealand in circulation, and the last before closing its doors are Japanese institutions have started a new day at work ..!!
Thus, depending on the timing of each state would be for you to handle a continuous 24 hours.
Except on Saturday and Sunday .. because they are on holiday in all states.
When shut down American institutions closed on Friday at 10 pm GMT almost would be a Saturday morning in Australia and New Zealand, a day off, as you know, so stop work to the Sunday evening at 10 pm GMT, where Monday morning in Australia and New Zealand to return the ball for the week of the next day behind the day. In each country and depending on the timing to the end of next week .. And so on.
Of course, you will not deal with all these institutions in all these countries separately, but will deal with the brokerage firm, which in turn Stervtk with all other institutions across the world.
What is important here that the learned, is that the work in the currency market continues 24 hours a day throughout the week, and this gives you the opportunity to choose a time that suits you best to work it without fear "that come late," In the currency market can not come too late, because the work is continuing throughout the day and because the opportunities are many and the clock.
High liquidityHigh liquidity
When you want to sell shares that they must find a buyer for him, and when you want to sell a commodity that must be there who wants to buy from you.
In some circumstances when there is news of what causes a sharp drop of the shares owned by all the holders of shares that you like her want to sell them, too, becomes the supply of stocks much more than demand and this causes a drop massive share price and extremely rapidly, so in some circumstances you may find it very difficult to sell your stocks at a reasonable price, but you may have to sell your stocks when a great loss to Atjd there who wants to buy.
This is called cash liquidity the ability to convert their existing securities into cash and this also applies to the commodity commodities in the circumstances of economic and political changes is important.
In the currency market, Vldkhama this market which, as we have the largest market in the world, you are always able to sell the holdings of currencies at the time you see fit and you will always buy from you before it is too late and this feature reduces the risk that you may encounter in other financial markets.
Fairness and transparency of the marketFair and Transparency
The currency market is the fairest market in the world ..!!
Why?Because it is a huge market so it can not be limited to the category of hand or what affect it easily.
For example, if you compare the stock market, if you own shares in a company once a simple statement of one of these officials, the company is liable to affect the share price down, which is owned or upwards.
In the currency market and that market huge magnitude can not be an individual or entity that affect it, are not affected by exchange rates, but moves the huge economic and estimated billions, and are not affected only the data of official government is not of any state but from the larger States economically, such as the United States or Japan or the European Union. Or statements of finance ministers and central banks of these countries.
This avoids "movements" manipulation that often suffered by the owners share the young and by the executives and senior shareholders, which may - say may - have a personal interest in the raising or lowering stock prices, there have been a lot of these stories even in the shares of international companies Despite the stresses and control procedures.
Magnitude of the currency market and they do not only affected by the official data for the largest countries in the world economically and with officials of these countries the official exchange market makes it more transparent, there are no secrets and manipulation.
This avoids the forex market stores a lot of bumps "hidden" that would face the traders in other markets.Take advantage of emerging market and the market bearish.
As we can in principle trade and get a profit in a commodity market, whether bullish or bearish.
Although, most dealers do not stock markets for example, traded only in the emerging market.
What does this mean?Means that the majority of dealers stocks are looking for stocks that they expect to increase their prices in the near future to do to buy these shares in the hope of selling them at a higher price, but when they know that the shares of a company will fall fail to take advantage of, it does not sell these shares to re-buy them again at a lower price of the sale price and keep the gain difference of the two rates.
Why?Because trading in bear market shares is characterized by complex and frequently restrictions, making it the area of danger, because the States and the stock exchanges impose special regulations for trading in the market downward in stocks for fear of being deliberately executives or those with an interest reduction of share prices to their advantage, so there are a lot of restrictions that make of shares traded in the market bearish complex issue does not deal only with professionals and owners of extensive knowledge.
As well as in commodity markets despite that you can trade and get a profit when you expect that the price of a commodity will drop it in practice, most dealers commodity markets also tend to work in the market rising, that is just looking for the goods that they believe that prices will rise, while in the markets falling commodity Few are dealing with.
This is because the goods likely to be traded in a special way called derivatives derivatives as mentioned a method is difficult to explain here makes the trading market, the falling of risk of high and therefore does not deal with, but with experience and capabilities and know-how high, but the vast majority of traders from ordinary people, they and the principle of safety they deal only in the emerging market.
The various currencies, where he told her that the market is bullish and bearish market faithful Sian..!!
And to all that can be traded in the currency, whether the expectation that its price will rise or fall without the risk or increase revenue, but at least it all the same in both cases.
Why?If you want to interpretation it is because the currencies are bought and sold in pairs and not individual pairs.
When you push the dollar and buy the Japanese Yen it means that you sold the dollar and the yen, I bought, and when you pay to buy the yen and the dollar, you practically have to sell yen and buy dollars.
What is important to understand that now in the currency market and unlike the other markets can be traded in the market bearish bullish market Kalmtajerh completely, which gives high flexibility and much greater opportunities for trading and getting profit.
It is another advantage of the currency market to the rest of the other markets.
The clarity of the currency market and the relative simplicityIt is the result of the magnitude of this market, making it not only affected by the data of the macroeconomy.
When you are trading equities That task as clear as we have mentioned: the search for a company that expects share prices will rise in the near future.
But the search is not a trivial issue ..!!
There are dozens of companies, but hundreds and thousands of them and this requires a study of hundreds of companies and their performance so you can see which ones will increase its stock price, and this requires time and effort immense, and although there are modern methods of scanning and filtering and that there are specialized institutions to provide advice you need, but that the matter remain tired of the large number of companies.
In the currency markets, and despite the fact that there are dozens of currencies can be traded, but that 80% of the deal market, currencies are the four currencies only, the euro and the Japanese yen and the pound sterling and the Swiss franc and all of these currencies against the U.S. dollar, and if you want to expand there are 8 coins only is of interest to traders that are 90% of operations restricted to them.
Any options that you are limited, which makes the issue easier and more focused and this undoubtedly helps you to succeed without that reduces the revenue compared to equities.
This on the one hand ..
But on the other hand just as we talk about the fairness of the market equity markets are affected by dozens of factors, some obvious and some subtle.
Before you buy shares must have studied the performance of this company for a long time earlier and be familiar with the performance of competitors and to know in no country's economy, which belongs to this company and its position in the global economy .. Etc. .. Etc..
Such studies require shops to have the background of economic and accounting and wide so that the evaluation and judgment correctly, in spite of the existence of houses of expertise and advice, but that these services not offer free of charge but a fee is often high.
But if you want to do so on your own it must prepare yourself to years of research, study and training to enable proper assessment of corporate performance.
In the currency Vldkhama this market and because it is not affected essentially only macroeconomic data of the matter is much easier and including the Aigas.
In spite of that currency trading also requires a lot of research and practice, but it does not require shops to have that background of economic and accounting required by stock markets to be successful shops.
So find a lot of successful traders in the currency market belong to the backgrounds are not necessarily linked to the economic domain, there are basically Mtagron engineers, doctors or staff or students.
Do not wish to be understood that currency trading is quite easy, of course not.. But we mean that everyone, even they have no significant economic background and experience they can practice and learn to be reasonably successful traders Unlike other markets.
Double high High Leverage
You know now that the multiplier is the ratio of the amount that ask you to push a token for every unit of the commodity to the value of the item in full.
As you know, that the basis for the introduction of margin based on a multiplier that enables you to trade in a commodity worth more than what you pay tens of times while retaining the full profit and if you actually have the item.
The higher the percentage multiplier that gives them a company that was able to deal with trade worth more than material goods without having to pay the large sum as a token of a redeemer, and this gives you access to more than profits by increasing the proportion of double.
For example:When you allow the company to double by 1:10 will be required you to pay $ 1000 for trading commodity worth $ 10,000.
But when you allow the company to double by 1:20 will be required you to pay $ 1000 for trading commodity worth $ 20,000.
As we mentioned, you can calculate the required amount of down payment as margin user the following equation:
Used margin on each lot= Contract size / ratio multiplier.
As you know, can be traded on a margin in all financial markets, whether you choose to trade stocks or commodities or currencies, you will find a lot of brokerage firms that open the way for you to trade more than several times the size of your size.
The proportion of double granted by brokerage firms depending on the type depending on the market and the company that will deal with it.
The currency market is the market which has the largest percentage increase among the other markets of up to 200 times ..!!
That is, you return for your payment of $ 1000 margin user will be able to buy and sell currency worth $ 200,000 ..!!
Which is the rate prevailing in the currency market is a much larger proportion of the multiplier which can be obtained in other markets.
For these reasons we believe that the previous trading the forex market the international system provides the best chance marginal and least risk for the stores is far from the normal economic specialization and accounting, it is the area most open to the majority of people.
So we will set aside the rest of this book to learn how to trade and the foundations of the international currency market and which, if granted what you need to practice and learn will be the fastest way to get a huge return on physical Whether you choose to work full-time or in part.
