Foreign Exchange: What is it and how it works?
Foreign exchange market "foreign exchange" is the largest and the world financial market. U.S. $, 1900 average daily volume of million dollars - the amount of money can only imagine! Trillion dollar industry - what you want to join?
Two foreign exchange market by buying. Currencies are traded in pairs Euro / Dollar For example, our (/ dollar euro), or dollar / Japanese yen (dollar yen /). Currency trading on the standard.
There are two reasons for buying and selling currencies.
The other 95% is trading for profit, or what is called speculation.
Satodiyaoni, the largest market with the best business opportunities (and therefore most of the country - convert their liquid assets or cash). By 'Major', today called the biggest companies are more than 85% of daily business transactions.
A real market, 24 - hour working day every day in Sydney and moves around the world each financial center, Tokyo, London and New York starts the first time in the currency trading begins. Actual time of day or night - unlike other financial markets, currency investors to enter the economic, social and political ups and downs for the response.
Foreign exchange market (OTC) OTC market or "interbank" is considered. The phone is due to the company, or through networking conducted between two counterparts. This compared to no change focuses on trading stocks and futures markets.
Understanding Forex Quotes
Currency prices may seem a little confusing to read.
The centerpiece of the common currency of U.S. dollar foreign exchange market and "base" is supposed to supply. "Big" it / USD JPY, USD / CHF and EUR / US dollar includes. For these and many other currencies, quoting a $ 1 dollar coin is recorded in the second pair is shown as a unit. For example, the $ / yen 110.01, which means a price of U.S. $ 110.01 Japanese Yen.
S Enter the basic unit of currency is the U.S. dollar rises, it means the value of the dollar and other weak currencies appreciate. If the USD / price you mentioned for the JPY 113.01, buy yen because the dollar is stronger than previously.
There are three exceptions to this rule, Argentina (ARS) Pound, Australian Dollar (AUD) and Euros (EUR) met with. In these cases means that you / 1.7366 GBP per dollar value, as the British pound and 1.7366 U.S. dollars.
In these three currency pairs, where the U.S. dollar base rate, rising prices, a weak dollar means that U.S. Dollar Pound Euro now, or the Australian dollar will be more consistent.
In other words, if a single currency, high prices, which increases the price of base currency. A low price means that the base currency is weakening.
US dollar currency pairs, including coins, crosses are not known, but the campus itself. For example, / 127.95 EUR JPY or notes at a price equal to 127.95 Japanese yen €.
When trading currencies, often the price of two in a page, a "supply" and "supply", that is to see. Sell the base currency the "offer" price (at time of purchase free money) can do. Prices "demand" that the base currency (currency sold on the switch) to buy.
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