Forex (Foreign Exchange Operations) is an international currency market where millions of transactions for the sale and purchase of currencies are carried out every day. At the same time, currency rates are used, which are constantly changing, and you can make good money on their change if you know how.
Instructions
Step 1
There are many players on the currency exchange: professional (central and commercial banks, investment funds, brokerage companies) and private (individual individuals or their small associations). All of them are participants in one big game called "currency exchange", and trading non-cash currency is called dealing (from the English "deal" - a deal). That is, the task of a currency trader (player) is to make the most profitable deal possible. This requires some knowledge, at least basic terminology. With this baggage, you can start the game, but do not forget to stock up on the initial capital of at least a few hundred dollars.
Step 2
Contact a special organization called a dealing center. In the modern world, this can be done via the Internet. There they will organize a study process for you (most likely for an additional fee) and open a trading account. The banks where your trading account will be located are called brokers. When making a deal, the broker issues a targeted loan to a private trader, the so-called leverage. This amount is 100 times the size of the account. Therefore, when you make a deal, you can earn an amount a hundred times greater than this difference on the difference in cents, but also lose it.
Step 3
The direction in which the foreign exchange market moves is called a trend. It is easier to represent this concept in the form of a graph, which reflects all changes in exchange rates over certain periods of time. It is these charts that currency exchange players study, analyze and predict where the rate will move in the near future. How a trader will conduct a transaction depends on this. In order to understand the technology of charting, to learn how to predict the direction of the trend, it is desirable to gain deeper knowledge than is given in the courses of dealing centers. You need to constantly improve them yourself, applying constantly growing experience. Intuition is not the least in this matter.
Step 4
You can earn money by buying and selling and selling and buying currency. That is, the game is carried out in two stages. The first stage is called "open a position", the second, respectively, "close a position". In the case of buying and selling currencies, you play for a rise in the rate: you buy cheaper, sell more expensive. This trend is called bullish (the market is growing up). If you sell and buy currency: selling is more expensive, buying is cheaper, then such a trend is called bearish, you are playing for a fall in the rate.
Step 5
Of course, basic terms alone are not enough to start working with the foreign exchange market, but this is a good start in forming a big picture. There are two main types of analysis that are used to assess the trend: technical (or mathematical) and fundamental analysis. In the first case, the trader uses mathematical knowledge when calculating the direction of the trend, in the second - economic and political summaries, changes in personnel (dismissals of high-ranking managers) in financial and analytical firms, as well as psychological changes (the impact of other traders on the market). The main elements of both analyzes are indicators, that is, indicators of change.
Step 6
Each trader must develop a specific trading system for himself. It should take into account the indicators used, types of currencies, credit ratings of firms and agencies that provide them, and so on. In many organizations, such systems can be created on the basis of off-the-shelf software, which significantly speeds up the work process.
