What is FOREX?
B 1970 - x years Bretton - the Vudsky system of fixed rates was replaced with system of floating rates of national currencies. There was the international foreign exchange market of FOREX.
Forex (from English FOREX, FOReign EXchange market) is literally translated as “ international foreign exchange market “. In traditional sense of this word, Forex is not “ " market;. It does not take concrete place of trade as, for example, the exchange. The auction happens by phone or through computer networks at the same time in tens and hundreds of banks worldwide. As in each of time zones, beginning from Tokyo and Hong Kong and finishing with London and New - York, there are people wishing to buy or sell currency, the foreign exchange market works round the clock. Currency exchange does not stop during the whole working week.
The possibility of obtaining the income in the foreign exchange market is based on the fact that each currency is the same goods as steel, gold or oil. Economic conditions of each certain country (labor productivity, inflation, unemployment, etc.) depend on a level of development of other countries more and more, and it, in turn, influences the cost of currency of this country concerning currencies of other countries and is the main reason for change of exchange rates. It is possible to buy currency while it has a low course, and to sell when it “ will get stronger “ having got profit at the expense of a difference in courses.
Unfortunately, for the ordinary person who is not burdened with large sums of money, the entrance on Forex is almost inaccessible. However for those who wish to check themselves and the knowledge of the field of economy, there are firms providing access to so-called pass - to Forex. If not to go into details, then it is possible to tell that distinction of Forex and pass - Forex consists in seed capital of the trader (the person trading in currencies). In system pass - Forex it much lower and makes 1 - 3 thousand rubles, depending on firm - the intermediary. Naturally, the list of services which firms - intermediaries provide to the beginning trader is less favorable to it, however having a good head on the shoulders, it is possible to receive benefit and under such entry conditions.
What image the auction in Forex is conducted? Everything is rather simple. The trader traces a condition of the market by means of the special program which is usually downloaded from the website of firm - the intermediary. When, according to the trader, there comes the right moment - the command for purchase or sale of currency is given. The program transmits the order through the Internet on sale / purchase to the server of firm - the intermediary where this application is registered and executed.
Now about the most important: whether it is worth investing money in Forex? The question is rather difficult. On the one hand, it is quite profitable business - profits can reach 50 - 60 annual interest rates. On the other hand - the market is the market. Nobody ever will give you guarantees that you if do not win then you will remain at the blood savings. To solve everything to you and nobody any more.
If you decided to check yourself, here to you several rules which, in my opinion, will facilitate life of the beginning trader:
1) Begin the career with the training (virtual) account. The majority of firms - intermediaries provide this service, and is free. The educational account differs from real only in the fact that money in it virtual - you will not be able to use them differently as for purchase / sale on the server of firm - the intermediary.
2) Study the corresponding literature. On the Internet the set of sources, but for a start is possible (and it is necessary!) to examine introduction to Forex - trading which is for certain posted on the website of the firm chosen by you.
3) Never spend more than a half of your money (virtual or especially real) for your currency transactions. Even if benefit is so obvious that it is necessary to spend money. It is better to get smaller profit, than to lose at once everything.
4) When opening the real account do not put all the savings there. As practice shows before making profit, Forex demands 2 - 3 “ victims “ in a look pass - bankruptcies when on the account there are zero rubles.
Here actually and all. What else can be added? Only one: good luck!