What's Forex Trading

The term "Forex" foreign exchange market or the global stock of foreign money, and is speculative it by buying and selling major currencies, namely the U.S. dollar, euro, pound sterling and Swiss franc and the Japanese yen.

As is the buying and selling of those currencies to the dollar or other currencies among themselves, so-called dual currency or any other currency versus another approach in value.

The speculation in the currency most profitable in the stock exchanges, and up the volume of currency trading in the forex market to $ 3 trillion a day.

The forex market is not a market in the literal sense of the word, it is not a center and not a place to exercise trading, but by telephone and the Internet, and sold hundreds of millions of dollars and purchased every few seconds, and this so-called currency trading.

And established the Forex market for financial transactions between banks in 1971 when it turned transactions in world trade of using fixed values ​​of currencies to the values ​​of flotation, and this is the result of a financial transactions carried out by agents of financial markets, to convert a certain amount of money currency one country for the currency of another country worth Agreed advance for a specific date.

Forex (mini foreign exchange market) is a real-time buying one currency and selling another. It is one of the largest markets for trading in the world, Forex trading permits for people from one currency to another profit when calculating the value of the currency, which will increase at the end of the specified time (fifteen minutes, for example, after the investment mode). Example, you can choose that the value of the U.S. dollar will rise more than the value of the euro when the time comes fourth in the afternoon). Forex is one of the biggest economic markets in the world., And usher for people over eighteen years of age to enter.

Forex Trading will seem difficult at first, but easy rules. To start, remember that the first recorded currency is called the base currency. The base currency is the U.S. dollar usually. People who traffic usually incite the dollar against another currency - Say, for example, the Japanese yen.

The U.S. dollar is considered normal base currency to give a price, meaning to give the U.S. dollar / Japanese yen 2.34 means that one U.S. dollar is equal to 2.34 yen. When the U.S. dollar is the basic unit and give currency price goes up, it means that the value of the dollar has risen and other currency has fallen or weakened. If, after the allotted time, the dollar / yen give rate became 2.50, If the dollar becomes stronger because the dollar can buy more Japanese currency. There is an exception to the rule, where the British pound or the euro that will be the base currency against the U.S. dollar. In this case, the U.S. currency is the "weakest".