Speaking of foreign exchange markets, they usually mean the FOREX market - the daily trading volume on it reaches several trillions of dollars! For those who want to try their hand at trading currencies, understanding the mechanisms of Forex is crucial.
It is necessary
- - access to the Internet;
- - trading terminal.
Instructions
Step 1
On the international currency market, a wide variety of national currencies are exchanged. The market operates five days a week: it opens on Sunday evening at 23:00 GMT and closes on Friday evening at 22:00.
Step 2
Currency exchange on Forex is carried out by a variety of organizations and individuals. State and large private banks can be noted among the leading players, they set the main dynamics of the movement of currencies. In particular, state banks maintain their currencies in a certain corridor.
Step 3
Private banks, as a rule, buy and sell currencies at the request of their clients - commercial enterprises. In addition, they often carry out their own speculative operations in order to make a profit. Finally, there are many companies operating in the foreign exchange market that make money solely on changes in the exchange rate of currencies.
Step 4
There are also private speculators in this market, a good example is George Soros, who once collapsed the banking rate of the British pound and earned billions of dollars on this speculation. In addition, there are hundreds of thousands of small traders on Forex who are also trying to make money on the change in the value of currencies.
Step 5
Forex is often called the interbank market, because initially transactions took place between banks. But with the advent of the Internet, the circle of its participants has expanded significantly. Nowadays, anyone can work in Forex without leaving home, it is enough to have access to the network. Trading is carried out through brokerage companies or banks that provide brokerage services.
Step 6
For direct trading, a trading terminal is used - a special program installed on a computer. In the terminal, you can see the graphs of the movement of currencies of interest to the trader and in a few moments carry out buy and sell operations.
Step 7
During the day, there are periods of growth and decline in activity on the foreign exchange market. This is due to the fact that at different times certain regions are connected to trade. So, the Pacific session starts first (at 23:00 Moscow time), then Asia joins the trade (Asian session, 3:00). Then Europe enters the trade (European session, 10:00). Finally, America enters the market at 16:00 (American session). Adjacent sessions may overlap - for example, from 16:00 to 20:00 Europe and America are present on the market at once. After 20:00, when Europe closes (London is the last to leave), America reigns in the market - until the next offensive of the Pacific session.
Step 8
Working in the foreign exchange market requires very serious knowledge acquired over the years. Many people, attracted by the information that it is possible to make very good money on Forex, start trading without experience and knowledge. As a result, they lose their money. It is necessary to understand that in speculative trading there is a simple principle - in order for you to earn, someone must lose. Money in Forex does not appear out of nowhere - someone loses it, someone wins. The vast majority of newcomers entering this market lose their money.
