What is Forex?
The FOREX, also known as FX, is the global market for buying and selling currencies. ALARA are Currences Foreing Exchange.
This is the market that most capital movement recorded daily, over a trillion dollars greater than the sum of all other markets together amount. We say it is a global market, because it is available to investors 24 hours a day and 5 days a week. There are approximately 4,500 institutions active in FOREX, and millions of investors that make it through these institutions.
Main centers forex trading
The main centers forex trading worldwide are the Tokyo Stock Exchange, the New York Stock Exchange and the London Stock Exchange, so that as they open and close in stages according to time zones, global investor is open 24 hours a day market. So you can respond to socio-economic changes or news affecting the quotes instantly.
Currency pairs in FOREX
In the FOREX, all movements and quotes are expressed in currency pairs. A purchase of one currency involves selling another simultaneously. For profit, buying a currency with the expectation that the exchange rate with the base currency to rise. When this happens, we have to make the purchase-sale reverse for profit (for example, bought $ 10 to 10 euros when the type is 1/1, the rate rises to 1.2 / 1, which means that $ 10 I have now I would get 12 euros, sell my dollars and buy euros, and as I started with 10 and now I have 12, I won 2 euros in the operation).
gains or losses
Investor expertise to anticipate changes in exchange rates, resulting therefore essential to generate profits or losses in its portfolio.
We think that being a continuous market in time (24 hours a day) and huge liquidity, volatility is huge. This means that quick and immediate changes will occur in opposite directions.
Therefore, it is a market that requires dedication to follow him. There are numerous applications for this, that allow us to take advantage of the technological age and to have at home, in our own computer, a center of personal control currency market. These programs allow you to set a test mode or training, in which investments are fictitious, and we must master before moving on to invest with "real" money.
Factors that may influence changes in exchange rates
Factors that may influence changes in exchange rates are innumerable, so just a tremendous experience and expertise allow us to extract maximum performance to FOREX. In fact, it may seem a contradiction, expert investors act almost automatically, without being influenced by the emotions of the moment, and that can only be achieved with a long involvement having experienced situations of all kinds.
Ways to analyze possible variations in the FOREX
There are two ways to analyze possible variations in the FOREX. First we have the fundamental analysis, based on the experience of how any event or news affecting exchange rates, and technical analysis, based on studies of the historical evolution of exchange rates.
A savvy investor will use both tools to decide their strategies, even to have clear guidelines on their investment.
A good plan that includes limits both increases (excessive greed can be bad) as the descents (a withdrawal time is beneficial) will maximize our profit opportunities.
On day to day, in the case of speculative investments, constant monitoring of changes and experience will be our greatest allies.