Get Full Knowledge About Forex guide by trade12

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Forex Guidance By Trade12!:

Forex Guidance By Trade12! Forex stands for foreign exchange market. The foreign exchange market is the place where currencies are traded. Currencies are important to everyone in the world because currencies need to be exchanged in order to conduct foreign trade and buisness .

Characteristics of Forex !:

Characteristics of Forex ! One unique aspect of this international market is that there is no central marketplace for foreign exchange. Rather, currency trading is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange.

Characteristics of Forex !:

Characteristics of Forex ! There are three ways that institutions, corporations and individuals trade forex : the spot market, the forwards market and the futures market. The need to exchange currencies is the primary reason why the forex market is the largest, most liquid financial market in the world.

Characteristics of Forex !:

Characteristics of Forex ! Direct currency quote : In which the domestic currency is the base currency . Indirect currency quote : Where the domestic currency is the quoted currency . Spread : The difference between the bid price and the ask price . Pip : The smallest amount a price can move in any currency quote .

Characteristics of Forex !:

Characteristics of Forex ! Bid price : The bid price is used when selling a currency pair (going short) and reflects how much of the quoted currency will be obtained when selling one unit of the base currency. Ask price : When buying a currency pair (going long), the ask price refers to the amount of quoted currency that has to be paid in order to buy one unit of the base currency.

Reading a Forex Quote :

Reading a Forex Quote USD / JPY = 119.35 This is a currency pair. The first currency[ USD ] is the base currency, while the next currency[ JPY ] is called the quote or counter currency. The base currency is always equal to 1 unit, a nd the quoted currency is what that base unit is equivalent to in the other currency.

Leverage:

Leverage Leverage is basically the ability to control large amounts of capital, using very little of your own capital; the higher the leverage, the higher the level of risk. The amount of leverage on an account differs depending on the account itself, but most use a factor of at least 50:1, with some being as high as 250:1

Good and Bad:

Good and Bad Don’t have too much scripts to look up for. Most peoples go with known currency pairs like USD/JPY or USD/EUR and so on. With inclusion of high leverage the profits and loss should be extreme. Either huge profit or huge loss. Market open 24 hours, Five and a half days a week. So no need for rush.

Factors which drives market !:

Factors which drives market ! Economic data Employment data Interest rates Inflation data GDP Political environment And so on.

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