FOREX stands for Foreign Exchange and is the mechanism by which you determine the value (price) of one currency in terms of another.
This is called the exchange rate (exchange rate) and the FOREX market is the market where currencies are traded several. The FOREX market arises because any economic transaction involving two operators of different nationalities must pass, receiving the poi, through the purchase and sale of foreign exchange. Over the past twenty years, however,, the role of pure speculation on FOREX has become increasingly important, to the point that today some 90% of transactions in this market are speculative in nature.
The FOREX is a market “Over The Counter” (O.T.C.), not established in a precise physical. Trading on the FOREX occur on a bilateral, between two counterparties independently establish the terms of the exchange contract. Every day there are no transactions for more than 2 trillions of dollars. All U.S. equity markets together do not reach the 3% of the total volume traded on the Forex market.
HOW IT WORKS
The FX market allows you to buy or sell currencies with each other, and to speculate on the differences in exchange rates. Perform a transaction on the foreign exchange market (forex) is simple: the procedures are identical to those of any other market and, then, go to the buying and selling of currencies will be extremely simple for most of the negotiators.
Buy / Sell – A / V If you want to open a position (eg: place a sell order to make a profit in the case in which the exchange rate collapses) you will have to first decide the amount (eg: 100.000 EURUSD) selecting it from the drop-down menu on the online platform and present, then, click your mouse button on the sales of the currency: PLACE (instead if you want to place a purchase order, you will have to operate in an opposite way, clearly).This will open a position within the market and to the computer that the user is using for the transaction will be instantly notified. To close an open position, you will have to proceed in the opposite way than the initial operation - in our case, it will buy again 100.000 EURUSD. How does the A / V system? As happens in every market, exist 2 prices for every currency pair. The difference between them is called the spread (the scarto) The spread is measured in points or pips - that is the lowest decimal place of a currency exchange rate. For a transaction EURUSD a pip equals 0,0001(or 10 Dollars on 100.000), for a transaction EURJPY a pip equals 0,01 (or 1000 If Su 100.000)..
Banking through electronic platforms, with the opening of the Beneficiary of your bank account at an institution chosen, by bank transfer. The paid-up capital will normally be referred to as collateral, paid in respect of the collateral will be prompted online forex, which normally will have a leverage, with this line forex foreign exchange operations will be carried out electronically indicated by the Advisor, and carried out electronically enabled platform chosen by the intermediary, Beneficiary or by a person or company appointed by him as a Trader currency of his / her account / s.
The feasibility of the creation of liquidity, is to be referred to a Financial Engineering on the forex market (currency market).
The buyer acquires a canon of information exchange by the Advisor, with which operations will be realized in the Forex market which will provide an income. The Company will release the information exchange will sign a contract with the buyer for the information exchange.
The buyer, appropriate to open a foreign exchange account at your Bank or Bank operations enabled by telematics platform forex currency; the account is in his name, on the same side will pay a sum. The bank of your choice in the face of these payments provide an online forex is usually multiplied by a leverage, this line with the account holder or anyone appointed by him as trader, making use of the trading platform currency, conduct foreign exchange operations indicated by’ Advisor.
All transactions in the account are summarized with reports, or simply extracts the audited accounts.