|
| |
What is Forex ?
Page
2
News analysis includes the study of economic and political factors that may
affect the currency market. For example, reports the Central Reserve Bank of
policies the U.S. economy and basic transactions, and statements important and
other important events. The main objective of the analysis is the basic analysis
of key factors and their impact on the dynamics of prices in the currency
market. The shops in the forex market always be familiar with the current
situation in the world.
Technical analysis is an analysis of the market situation changes based on the
previous price. Used in this analysis graphs that reflect price changes for a
certain period. Technical Analysis and we also understand the general market
situation at the present time, several indicators can predict price changes in
the near future. Technical analysis is based on the fact that the movement of
prices to take into account all the factors that could affect the market -
economic, political, psychological and other factors - are already taken into
account when setting prices. And if the market truly market Vsttkon movement as
a result of a huge number of participants taken after their analysis of the
enormous amount of information when they contract deals. The behavior of prices
is the result of these decisions, and you have to monitor each input information
in this market. What is needed is the fact that few shops - to know the
direction of movement of prices. And technical analysis, gives a tremendous
amount of tools enable us to draw useful forecasts of graphs of prices.
Psychoanalysis is to analyze the behavior of traders in the market and their
psychological and expectations, hopes and fears. This type of analysis is very
important because the rate of health is very high. We must not forget that
behind the computer stations that give human beings and the expectations of
prices depends on their actions in the end rates of exchange.
Kinds of speculation in the currency exchanges
Currency speculation is divided into several types:
1) Speculation China: known as the spot and move the exchange rates between the
second and another, which requires that speculative prices are always in front
of screens, and is characterized by this kind of speculation, quick, and it can
be a large number of operations per day, can not determine the profit or the
loss.
2) speculation on future contracts Future: a speculation on currencies in the
future based on the price of future expected; where they are working according
to the technique is different from other kinds of speculation, and often subject
to the expectations of speculators based on the availability of their data and
information on the movement of currencies in the current and future and the
economies of countries.
3) speculative derivatives, known as options: a type depends on the specific
plans for market entry and exit, is to determine the percentage of loss that can
be incurred prior to the start of speculation, the most important feature of
this system is that it is processing plans and access to the market, and
currently sells consulting firms in this field magnetic disks or CD for those
plans and can cost up to $ 250 thousand, one ROM, and the speculators in this
area of major companies in this kind of speculation is the link between exchange
rates and other variables such as oil prices or gold prices or the price of a
commodity such as wheat and others.
4) speculative reciprocity: This type is limited to owners of import-export
firms; where it is speculation on the stability of the currency value, and be a
source of profit for the importer of the total change of exchange rates for
exports and imports together.
Backgrounder
You may wonder why not known FOREX when compared to trade stocks and
commodities, which began in its present form almost since more than a century.
The reason is the novelty of the Covenant.
After World War II and in 1947 was signed between the victors of the Convention
on the "Bretton Woods" to rearrange the world Allaguetsad Among the provisions
of this Convention has been a process of exchange rate against the U.S. dollar
substitute for gold as a way to help build the war-ravaged countries in Europe
debilitating, and of the most important outcome of this decision is the
stability of exchange rates and the minimum level of fluctuation against the
dollar and against each other.
There was no room for trading currencies, which are mainly based on exploitation
of currency fluctuations against the dollar.
But in 1970, and as a result of difficult economic conditions experienced by the
United States decided to President Richard Nixon's famous decision to break the
link between the U.S. dollar and the currencies of Europe and Japan, which led
to the impact on the currencies of Europe and Japan this decision severely
affected, becoming a quick swing up and down under the impact of policy and
economy of every country of these countries and under the influence of strength
or weakness of the U.S. dollar and the U.S. economy, and this history of this
market grew at the same time in the United States, Europe, Japan and other
countries.
But as a result of the novelty of this market on the one hand and poor means of
communication on the other hand it was impossible for non-banks and major
financial institutions trading in this market is huge.
But with the continued development and rapid means of communication and the
rapid spread of computer use, with the Internet revolution, individuals can
become huge and since no more than a simple trading currencies and take
advantage of the opportunities for endless imaginary earnings, and very quickly.
As you can see the currency market is the most modern markets, the rest of the
financial markets, which makes it a mysterious and unknown to most people who
are accustomed to trading stocks and commodities since decades away, as well as
people who originally Aitaamilon any of the financial markets.
Why do people buy currencies of other countries?
When a dealer from Egypt, for example by purchasing goods from Japan, it has to
pay the value of the goods accepted by the seller the Japanese currency, often
the seller will not accept the Japanese to get the price of goods in Egyptian
pounds, but wants to receive either the price of goods in the currency of his
(Allen's) or currency accepted in most countries of the world such as the U.S.
dollar or the euro or pound sterling.
Here is not only to the Egyptian merchant to replace its own pounds for the
purchase of U.S. dollars to the Japanese sent to the seller for goods bought by
him.
If the trader said that the dollar buys and pays an interview pounds.
Similarly, if an Arab wanted to travel to one of the European countries for
tourism, for example, must buy its own currency local common European currency (euro)
to be able to pay what they are buying goods and services in European countries
to be visited.
Similarly, if there is someone who wants an Arab investment in the UK to buy
property or shares, for example to pay an astronomical value of these
investments must be paid or the value of the pound sterling currency accepted by
the seller England dollar, for example, whether to replace the actual local
currency and buy sterling.
The most important reasons that drive someone to buy another currency ..
Trade, investment and travel.
This applies to the States as it applies to individuals, States, including
exchange of goods and services widely bought and sold can order a State to pay
the value of imports must be paid the value of the currency of that country or
currency acceptable to that State, so States have always because you buy
currencies of other countries.
As well as for investments States and financial institutions that invest in the
state pay for these investments in currencies of countries which invest in
currencies or accept such as the dollar and the euro and the pound.
Do you know now why is the currency market is the largest in the world?
This is because there are millions of trade, investment and travel situations
occur every day and everywhere all over the world, if there is a continuing need
for buying and selling of currencies every day and throughout the world, from
here it is day trading at least $ 2 trillion .. !!
This staggeringly large figure represents the value of currencies are bought and
sold every day in various parts of the world.
As we have stated the main reason why people and nations who buy and sell
currency is trading, investment and travel between individuals and nations.
The purpose of obtaining another currency in all these cases is to use this
currency in the exchange of goods and services between individuals and nations.
People buy another currency not out of love ..!!
But because it enables them to obtain goods from another country, that people
buy and sell currencies as a tool for the exchange.
But how do we buy currency?
So that we pay the equivalent of another currency ..
You must have you ever go to one exchange and you replace what you have local
currency in exchange for another currency, for example U.S. dollars.
You do have to sell your currency and buy the U.S. dollar.
Of course, in order to buy something, he should know that the price .. As well
as when you want to buy a currency should be known as the price in another
currency.
| |
|
