With the development of technological progress, many peoplethey found it convenient to earn remotely by working at home in front of their personal computer. Today you can start earning without even having special knowledge or large money capital.
A popular Forex exchange provides anyone who wants to start trading with just a few dollars in a personal account.
Forex: what and how it works
To different world organizations constantlyit is necessary to change the currency for international transactions. In this they are helped by the Forex market, which is by right the largest of the existing world markets. On its sites, more money is exchanged daily than in the markets of the whole world combined. The daily turnover of Forex is more than five trillion US dollars.
The name of the Forex exchange came fromexpressions "forex exchange", which means "foreign exchange". Money on this site is traded at free quotes. The price of the world currency is constantly changing, and traders timely sell and buy it. This whole process is the Forex market.
Forex trading takes place only in online mode, because this market is completely virtual.
Forex Appearance
Forex appeared as an international platformin 1971, and since then has been expanding rapidly. In 1977, daily transactions were made on Forex in the amount of 5,000,000 US dollars. According to experts' forecasts, in 2020 the market will gain a daily turnover of 10 trillion.
Traders from all over the world participate today in Forex trading, their number is constantly growing.
Forex Contributors
The main participants are, of course, banks. It was created at the time for interbank trading. Over time, the list of participants has changed and now they include:
- central and commercial banks;
- investment companies;
- traders;
- Insurance companies;
- pension funds;
- international companies engaged in import and export;
- dealers and brokers.
All participants can participate actively or passively in the Forex market.
Active participants are those who influence the formation of prices. These are banks and brokers.
Passive participants are those who enter into transactions forthe prices offered by active participants. These are investment funds, companies related to import and export, as well as private investors who work through dealing centers.
Forex market relations
Since Forex works continuously, then to itsEveryone can join the work at any time of day or night. On this site, market trade relations are regulated, both between large companies and between states. This is due to the trading participants.
Understand the principles of Forex is not difficult.However, in order to deal with all the nuances and versatility of this trading system, it will take years to learn how to fully use the financial tools of the site. The guarantee of successful earnings on Forex is only a clear and clear understanding of all processes occurring on the site.
The difference between Forex and Stock Exchange
Many know what it means to trade stocks and what a stock exchange is. Crypto-currency trading is somewhat different from buying / selling shares, but not everyone understands what Forex is.
For shares on the stock exchange requires constantfollow. In Forex, the same is traded mostly in the most popular currencies. You can, of course, deal with rare, more exotic currencies. But the biggest bets are made on the world's leading currencies. These are the euro, the dollar (USD), the British pound (GBP), the Japanese yen (JPY), the Australian dollar (AUD), New Zealand (NZD) and the Canadian dollar (CAD), Swiss franc (CHD).
Unlike Forex, on the stock exchange, you cancarry out transactions at a certain time only on a particular exchange (such as Nyse), and the most uncomfortable - only for several hours a day. You can trade Forex in real time on a 24x7 basis. At the same time, there is no need to even think about exactly which exchange is trading each lot - the Forex system itself selects the most profitable sites and in this sense it is very convenient and comfortable to trade in this market.
Since at the conclusion of trading transactions Forexuses loans, then investing even a small amount, for example $ 100, a trader can count on the purchase of specific currency pairs in an amount up to 2000 units. This is the principle of margin trading.
In practice, this is expressed by the fact that if the priceof the selected pair changes by only 0.0001, the result can be a very solid profit from the investment. At the same time, buying / selling is very fast, and volumes are incredibly large.
Forex Exchange receives its commission from all transactions. It is the difference between the prices of sales and purchases. Naturally, the purchase price is always at least slightly higher.
Thus, the Forex exchange does not ownphysical shares or other documents accompanying currency trading. The system supports the status of purchase / sale of each trader and receives a reward for it.
Unlike the stock market, Forex is not managed by the participants.
Main advantages of the exchange
- The Forex market has a high volatility, which is convenient and gives everyone an opportunity to earn money.
- To start earning, no specific skills are required. You can always try your hand at a free demo account, go online or make real exchange trading on the stock exchange.
- Forex exchange does not depend on crisis situations inworld. And even in such a situation, when one currency grows, and the value of another falls. Forex is working with currencies, and since they can not fall in price to a minimum, then the exchange can be earned regardless of the world economic conditions.
How to start working on the stock exchange
At the first acquaintance with Forex there is a lotquestions about what Forex is, how to make money on it and not lose your money. How to reduce the risk of losing balance to a minimum? This is the main issue of trading on any exchange. In this regard, the main recommendation is not to start trading immediately for real money, but first to practice on a demo account and learn training courses on the stock exchange.
When there is an understanding of the work of the tradingsite and develop its own strategy - you can move to trading on a real account. Naturally, in order to successfully trade, you need to know the main terms, the history of the development and emergence of the foreign exchange market, understand the principles of analysis and learn how to use trading tools. A significant role in understanding the trading situation is played by forex forecasts, which are found in brokers and experienced traders.
Training courses are being studied not only by beginners inexchange trade, but also professionals turn to them periodically to improve their skills and to keep pace with trade trends. Quality courses provide for its users the brokerage companies Alpari and Insta-Forex. Typically, these courses are divided into levels and are designed for traders with different knowledge and experience.
A way to earn income without working on the market personally
In Forex, maybe even this.It is not necessary to trade yourself, if there is no self-confidence. The Forex exchange gives an opportunity to invest their funds in the accounts of other users of the exchange, who have proved themselves to be experienced traders. For them, trade is not a hobby, but a profession.
Such investment is also good becausethis service is completely transparent. Every day, all those who invested their funds in the accounts of other traders, come reports on the account manager's trading. In addition, it is possible to withdraw your money at any time.
Forex Basics for Beginners
Forex - one of the supports of the movement of financialinvestments between states in world trade. With his participation, the international process of buying / selling (exchanging) currencies is much easier, and this mainly attracts large banks. Different companies constantly pay imports to other countries by the currency of these states. For such an operation, it is required to translate (convert) the national currency into the required one.
Individuals working on Forex at their own periland risk only with their own funds, can only take part in transactions carried out by major players. However, their personal contribution is not so significant. That is, the market provides an opportunity for those who wish to understand what Forex is, to trade in currencies at the price that is most profitable at the moment.
When a private trader sellscurrency, for example the US dollar, it is exchanged for another, for example, the Japanese yen. The components of this procedure are called "pair". So, GBPJPY is a pair that sells British pounds in exchange for Japanese yen. Because Forex uses credit tools, then with such a trade the trader sells or buys this pair at a price equivalent to 1.5000 for GBPJPY (pair).
That is, the similarity of Forex with the stock exchange is that there is trading in stocks, and here in pairs.
How to earn trade in Forex
To start earning on Forexcreate an account with one of the forex brokers and replenish the account. Usually, most brokerage companies provide the right to make cash to trading accounts through many popular electronic payment systems (PayPal, Yandex Money, WebMoney), from a credit card or through bank transfer. If none of these methods is suitable, you can replenish the account through the exchange offices on the Internet, indicating on the service's website, where to withdraw the money and the purse number of your trading account received from the broker. Thus, the money immediately transferred to the account for trading.
No matter how simple it was to replenish the account,it is recommended that you first trade in demo accounts to understand the principles of the market, learn to place orders and follow the trend, using the Forex rate charts. After all, one seemingly insignificant mistake is enough to lose all your money in a matter of seconds.
Forex Concepts and Tools
- Base currency - This is the currency in which the trader is interested, he usually trades with it. For example, in the pair USDEUR - USD the base currency, and EUR - the quoted ("counter currency") currency.
- Leverage (or leverage) is a loan frombroker, through which you can trade funds that exceed the balance hundreds of times. For example, having only 100 dollars you can buy 10000 EURUSD, using the leverage of the right amount.
- Indicators are special tools that help to conduct technical analysis. Forex indicators can be: trend, oscillators and auxiliary ones.
- Lot - the so-called unit of trade. There are: Standard lot in 1000,000 points; A mini lot in 10,000 points; Micro-lots in 1000 points.
- Open positions are orders that are not yet closed.
- Point or Pip (mark) - the minimum price applicable to the quotation of a currency pair. Most currencies have a pip equal to 0.0001.
- The selling price (rate) is the price at which a pair can be sold.
- A short position is an option meaning that the order is placed in the hope that the price of the currency pair will drop.
- The margin is the difference between the sale price and the purchase price.
- Stop-loss - undesirable in its direction of the price, upon reaching which the order will be automatically closed to avoid further losses.
- Spread is one of the important concepts.This is the difference in points between the selling and the purchase price of a pair over a period of time. Spreads are fixed - constant value; fixed with the possibility of expansion - under certain conditions can expand; floating - a variable value, depending on the state of the market.
- SWAP is the transition of an unclosed trade position tonext trading day (day). Can be both positive and negative. There are trading accounts for which SWAPs are not accrued. Sometimes there are days when trading companies establish triple SWAPs. It is necessary to learn this in advance on the sites of brokers with which the trader works. Understanding the meaning of SWAPs, you can trade in the so-called SvOvovym Forex strategies. With this trade, orders are opened and kept open for days, months and even years. Of course, for this it is necessary to choose currency pairs, in which the most profitable positive results.
Expert Advice on Forex Trading
- Start trading should be small, until it is absolutely clear what is Forex and how it works. Do not immediately invest large amounts.
- It is mandatory to use stop-loss.
- Do not immediately use a large leverage. It is better to use shoulders from x5 to x25.
- To invest real money only after sufficient practice on a demo account.
- To start earning on Forex is better with trading on gold and silver than on currency pairs.
- Do not allow yourself to control your emotions. If the deal becomes loss-making - it's better to get out of the auction than to try to win back.
In order to quickly achieve success in trading on Forex experts advise:
- Be aware of the advanced ways of investing.
- Listen to consultations and forecasts of trustworthy brokers.
- Continually study the graphs and indices for technical analysis.
- To pass special courses on trade in the market.
- Regularly review reviews about forex brokers, because the opinion of users is sometimes the most objective.
