What is Forex?

Forex is an international currency exchange. In accordance with the name, one can immediately determine that the main «products» here are the national currencies.

The structure of the market is somewhat similar to the exchange office. Currency units are sold or bought, taking into account the value positions that exist at the current time. Due to the difference in exchange rates, you can make a significant profit if you buy or sell a certain currency at the appropriate times.

At the same time, when the demand for a certain currency decreases and the cost becomes minimal, it is rational in certain cases to carry out the acquisition process since there is a high chance that significant growth will be provoked in the future.

Who and how can work on Forex?

If earlier only large companies and banks could trade on the exchange and could do it only through brokers who had specialized offices, today the situation has changed dramatically:

There is quite a significant number of brokers - intermediaries who have specialized Internet resources, through which the process of remote trading is carried out;

For trading, you can use the minimum financial capital, as brokers provide leverage level, as a kind of element to increase basic capital (for example, you have $ 10 on your account, using leverage in the ratio of 1:10, you can operate on the amount of $ 100. This amount is somehow provided by the broker but is not credited to the account, but only used in the calculation of profit or loss);

Everyone can play wherever he is at the moment. Access to trading is carried out with the help of special trading platforms - programs that allow you to open and close orders, to monitor the movement of currency pairs.

Accordingly, nowadays Forex has become available to everyone. Anyone can try himself in this type of currency business, learn all the nuances of betting, get a substantial profit.

Basic definitions

Forex – is an international currency market;

Broker – an intermediary between the trader and the exchange;

Trader – a person who has the ability to purchase or sell a currency with the help of a broker in order to obtain a certain profit;

Leverage level is a service of the broker that increases the client's main deposit by a clearly defined number of points, finances are not credited to the account, but are activated when an order is opened.

Bids could be opened on the rise or fall of the currency cost value. The growth of the rate in the right direction (or in the fall) provokes the formation of profit.

There is such a thing as a currency pair. We are talking about the fact that a trader buys one currency for another, which provokes the opening of an order.

The main features of the Forex market

Functionality. The main objective of this market is to conduct exchange operations in various currencies. Naturally, market relations, the determinant of demand and demand contraction provokes an impact on the value of the exchange rate.

Because of this value, traders have the opportunity to use this exchange for serious earnings. It should be noted that almost all the Central banks of the countries in this market systematically carry out interventions to stabilize the parameters of exchange rates on the national currency;

Complete lack of geographical reference of the geographical plan. Through this aspect, a twenty-four-hour operation is formed. Various operations are carried out throughout the day and night. The trader can work around the clock, and it does not matter where he lives. Access to trade is provided through a specialized programme. This program must necessarily be installed on a computer or other personal device;

Variety of market participants. There are majority shareholders - large commercial organizations, investment companies, Central banks. Different companies and ordinary traders – all of them can trade. And all are put in the same conditions.

How to make a profit on Forex?

The profit is formed solely by the difference in rates if the order was opened for the growth of the currency value, and it actually increased in price, then the trader makes a profit depending on the amount of the deposit and the chosen leverage. But if contrary to all expectations, the currency began to move in a different direction, the trader goes into the negative in the amount of his deposit. When loss options reach the sum options of the deposit, an automatic closing operation is provoked.

To get a significant profit, you need to get the maximum information about the currency parameters, the features of the formation of profit on Forex, as well as to study the various financial instruments of trade, which are provided today in a significant abundance.

Remember also that an important aspect of normal operation is a competent choice of broker. When looking for a trading platform through which you can enter the market, you will assess the reputation, the time of existence, the response when opening/closing orders, as well as the conditions and speed of input and output of funds. Based on the information received, you will be able to correctly identify the broker. After that, it is necessary to study the features of the fundamental analysis, which is considered fundamental by many traders.