Forex Market Analysis

The Forex market was finally formed in 1977 and adopted a system of floating rates. Corresponding to this system, the currencies of different countries no longer tied specifically to the dollar, but had the right to change with respect to each other. The foreign exchange market has always existed, but when the first money-changers appeared, a new highly liquid market with a trillion-dollar daily turnover arose.

All of us are passive participants of the foreign exchange market. And there are people who wanted to take an active part and trade financial assets. Such actions allow you to save passively your savings, as well as they can provide additional income. This income can easily grow into a basic form of earnings and provide a trader to the end of life.

Currency trader - this is the profession that is based on the extraction of profits, based on fluctuations in exchange rates. The trader does not care whether the US dollar is growing or falling, profits can be obtained from any direction. To determine the possible movement of the market, methods of analysis are used. Based on the data, the trader purchases the currency at a low price to later sell more, or vice versa, sells the currency more to buy then cheaper.

To start trading in the Forex market, you need to familiarize yourself with the principles of its work. Beginning Forex traders are now available for any training. Participants in the foreign exchange market are: Central and commercial banks, investment funds, stock exchange offices, individual traders, as well as we exchanging money in exchange offices.

In any market, the object of trade is the commodity. Forex market product is any currency with a floating rate. Trade participants are spread all over the world and do not focus on one site. Therefore, most of the trades are individuals, and the rest - the stock exchange.

Participants in the foreign exchange market are scattered all over the world and trade at different times. This means that trading takes place around the clock. But this does not mean that you need to sit in front of the monitor all the time. Choose a suitable mode - day or night trading.

Like any market, Forex also has the right to a break. Trade stops at one o'clock on Saturday night and starts at one o'clock on Monday night. At this point, the banks and stock exchanges stop working. They also rest on holidays. In these moments, you need to carefully make transactions, since there are not enough participants, and any large bank can change the course dramatically and for a short time.

Now let's analyze the currency. It is basic and quoted. The base currency X we buy or sell for the quoted currency Y from the record X / Y. The price charts show the change in the price of the base currency relative to the quoted price. Therefore, on the EUR / USD chart, if the movement is shown down, then the euro is cheaper, and the dollar is becoming more expensive.

The quotation, unlike the exchange rate, will show more specific numbers. That is, at some point, you will be shown the purchase rate and, at the same time, the sale rate.

See an example: we all saw signs in banks with the difference between buying and selling currency. This value is significant, because it is the earnings of a particular bank. In the Forex market, this difference is very small. That is, quoting EUR / USD 1.3200 / 1.3205 means that the broker is ready to buy from us the euro against the dollar at a price of 1.3200, and sell at a price of 1.3205. The difference is barely noticeable, and is 5 points (0.0005). In the bank, this situation can look like this: 1.3200 / 1.3328.

Get basic knowledge of the Forex market on the SpeedForex.ru website.