What is Forex trading?
Forex is the foreign exchange market that registers the highest number of transactions worldwide, moving an amount of money of 5 million dollars. Not only it’s the largest financial market, but it has more liquidity in which more times are exchanged in a different way than other business people, individuals or even organizations that carry out their business activity globally. Forex operates 24 hours a day from Sunday night until Friday night, which is not based on a central stock exchange.
The FX Trading is nothing more than carrying out the buying and selling of currencies, being the largest financial market worldwide, with more active users and a great diversity of currencies operated in pairs. That is, the Forex market simply refers to the simultaneous purchase of one currency and the sale of another.
Performing Forex operations, allows the user to benefit from variations and / or fluctuations in the exchange rates of a wide range of currencies. As mentioned above, the transactions in terms of the parties were carried out in pairs, being the most common example of EUR / USD. With this, you can arrive at a specification with respect to whether the price of this currency is available in its price or failing with respect to the price of the currency of another country and in this way, operate for your own benefit.
The first online Forex trading services were thanks to the company CMC Markets, being the first online trading services in the United Kingdom. For that reason, it’s possible to trade with the main crossed currency pairs, with the exotic pairs, the common ones and even with CFDs on currencies.
How does FX Trading work?
When transactions are made with the different currencies the first thing that the trader does is specific to the behavior of the price of the currency base, if this will rise or fall against the price of the quotation division. For example, with the EUR / USD, if the trader speculates that the value of the EUR will rise with respect to the value of the USD, then this will remain with a long position in the currency pair, that is, it will buy the pair. On the other hand, if the subject believes that the value of the EUR will fall before the value of the USD, it will remain in a short position in the currency pair, which means that it will choose to sell it.
If the trader has and maintains a long position in the EUR / USD pair and the value of the EUR rose against the USD, then the USD will make a profit. But if on the other hand, the operation flowed in the opposite direction, the merchant will get a loss. It is possible that the subject has the possibility of operating with the use of a leverage, which will give him the opportunity to proliferate his potential gain but it must be taken into account that the possibilities of
What is a trading system?
A trading system is nothing more than a series of mathematical accounting rules in which a large number of people wish to invest in investment operations. Great benefits that the creation of a different trading system that operate with computer programs brings, is that it allows buying and selling operations in any of the wide variety of markets that exist today are automatic.