What is Forex trading ?
History of Forex Before we start explaining what is trading in the Forex market, we would like to give you a brief history of Forex.
The Forex market was created in 1875 with the birth of monetary system by the gold standard.
This was a system in which each State registration of their currencies with gold to indicate their value.
The gold price was fluctuated between currency and the currency exchange system. The second world war ended the monetary system of the gold standard and the Bretton Woods system. This new system was applied in 1944, where the us dollar as a reserve currency countries. This system does not work so much, and ended in 1971. In 1976, the Forex market has been established with the introduction of floating exchange charges. In the mid1990s, the Forex trading high on huge electronic markets are used to today.
Forex market talk The Forex market is decentralized, international financial market where currency is exchanged for another. Individuals and institutions can purchase a quantity of currency and payment in another currency, where a company in London that imported products from a company in Rome and pay for these products Commission euros rather than sterling.
This Exchange from one currency to another easy to facilitateglobal trade and investment companies.
The Forex market is not restricted by geographical boundaries, working 24 hours a day, 5 days a week. And its also the most liquid market in the world. When trading in the Forex market there are simple philosophy followed by rolling, when trading a currency against another currency, the currency in which the price is high (long position), and sell the currency expected to lower prices (short position).
You can do this by using the famous trading tools, but there is always a portion of the risk. If the currency you bought on price as I expected, you can sell it and get profits, but if priced reverse forecast, it will be offset by losses. You don’t need to be an expert to good trading, the Forex market is easy to learn if you want to.
When you need us? The median is the link buyers and sellers together. We search for the best buy and sell prices available in the market and traders. We are mediators of this market, and we carry out operations you. The three trading sessions.
The Forex market never sleeps, not for continuing activities at all times and throughout the world.
This is done through three meeting system which allows traders the ability to trade whenever they want, regardless of time or location. Asian meeting 22:00 GMT – 09:00 GMT After the weekend, activity is recorded in Asian markets first.
Australian market trading starts at 22: 00 GMT and ends at 20: 00 GMT. And of other States in this period also China and Russia, New Zealand and Japan. European meeting 08:00 GMT – 17:00 GMT Towards the end of the Asian meeting starts working at European and interfere with the meetings.
The most important market for this meeting is in London, but there are important markets are the European meeting, such as Germany and France. European meeting activity starts at 08: 00 GMT and ends at 17: 00 GMT.
A United States 13:00 GMT – 22:00 GMT In the middle of the European meeting activity starts at America, at 13: 00 GMT and 22: 00 hours GMT. The most important participants in this session is New York City.After the meeting and before the start of the Asian meeting will calm down for a short period.
THE END
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What is Forex trading ?
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