what is a forex ? and why it's important ?
What is Forex?
Currency Trading Forex - FOREX
Forex is a market, but he only market in the world which is being deliberated on the clock. 24 consecutive hours.
And is characterized by rapidly completing the transactions (sale, purchase) and can be any one that works by a very low-cost, and has very high liquidity. All these factors make this market more exciting and attractive, but there are many types of this market is important here is the foreign exchange market (or foreign exchange market), more markets for its clients.
And the foreign exchange market this can not be likened to another market or any markets, stock trading in terms of shape, as there is no exchange here is known in the traditional sense of the word. It is composed of a huge global network linking the simply enormous number of currency traders in the world.
Here are circulation among hundreds of banks over the phone or via the Internet.
But what is bought and sold in this market?
Major currencies that are traded are: the American dollar, euro, pound sterling, Japanese yen, Swiss franc, in addition to all the currencies of the world.
The five largest centers where trading between banks which represent two-thirds of the volume of global exchanges: London, New York, Zurich, Frankfurt and Tokyo.
Who are the players on this arena?
1- global banks. It is no secret to anyone that the banks are the largest and most important players in the arena of global trade currencies. They are conducting thousands of transactions daily around the clock, they exchange among themselves, or with a broker Aoualemsttmaren ordinary, through their Permanent Representatives in this area. It is no secret that the greatest influence in moving the market and to identify and exclusively in the hands of top global banks, as the daily transactions of billions of dollars.
2- central banks. Central banks are transactions in this market, commissioned by their governments, a move often to influence the course of the direction taken by their own currencies, according to the interest that is consistent with monetary policy, and therefore protect its economic interests.
3- investment funds. It was due mostly to institutional investors, or retirement funds, or insurance companies, intervene in the market, according to the dictates of their interests. Recall the most famous of these funds "Quantum", owned by the Fund renowned investor George Soros, who wrote a history in this area and still is one of the biggest investors who are able to extend influence the course of the market.
4- Forex Trading clients. These are the important link between the Permanent buyers and sellers. In other words, they move on the intermediaries between the various banks, on the other hand between the banks and private investors. For their work and see them blow for this commission.
5- independent people. Here we are ordinary people who make a huge daily turnover of currency to finance their trips planned, or to secure access to their salaries, or at retirement, etc..
Today, after the revolution that introduced the Internet on the operations of Global Communications, and after successive collapses in the stock markets, and under the influence of the atmosphere haze seen by the bond markets **** soft world is growing little by little the role of independent dealers who have modest amounts of money in buying and selling operations daily fast growing influence and grow in the foreign exchange market, so that many of them are now profess this work, and spend their days in front of computers bought and sold each according to his vision of the course of today's events. We are them (speculators (
But How can I be one of them and all I know is just how to enter information light and how involved and how to be a merchant in this market wonderful???
All of these questions think of now and I will respond to all these questions and I'll hand step by step even says you go in this field to become a professional with the help of God Almighty.
So far, we know that the area in which we will do is trade or sale and purchase of one currency against another
How profitable?? Achieved a profit when prices change those currencies, the euro, for example I bought with 1 U.S. dollars and increased its price and became 1 dollar and fifteen cents to get the gain difference
But this requires a large capital somewhat so I would bring a high profit, is not it?
No you will not require high capital because we are working with these companies Margin which allows you to work with weak capital is 100 times ..!!
What do you say 100 times my capital to Mamaa??? And how???? And what benefit are they??
This type of work called Margin Margin or margin
I did not find better than the example mentioned in the book Forex4Arab him and to help us understand how to work the system and Margin Saketbh you here
Maalmqsod work on a margin?
To be able to understand the mechanism of the introduction of margin, we easily we shall explain by example will accompany us all the time, a significant
Suppose you want to trade in motor vehicles, however, that you buy a car, then you are selling in the market for buyers at a higher price and how you do it?
Go to one of the agencies and big cars and choose a car that you imagine you will find the applications in the market to assume that the price of the car to the agency car is $ 10,000
All we need is to provide this amount and you pay for agency vehicles and thus the owner of a car worth $ 10,000 .. Since the purpose of buying the car is traded, you will go to the market and hoping that the car was sold at a higher price than the price I bought it.
Now suppose that when you went to the market and found that the demand for high quality car and there are a lot of people would like to buy .. then will be displaying the car at $ 12,000 for example ..
If I sold this price is the net profit from trading this car $ 2000
But what if I went to the market and found that the demand on the quality of your car is weak and that there is no one wants to buy at $ 10 000 and the maximum price one can buy a car is $ 8000?
What does this mean?
Simply means that if you sell you this price, your loss in trading this car would be $ 2000
It's a clear process is much work per day .. and you can do so you also.
But hey ..!!
Prior to conducting the operation then you have to be a belongings of the amount of $ 10,000 from the outset to be able to buy a car buy it .. This is your capital in a trade.
If you were not have this amount will not be able Mnschera car and therefore will not be able to sell in the market ..
This means that in order to be able to trade in cars must be belongings of the entire value of the car I. ..
Is there a way by this process because without that you have $ 10,000?
Yes, there is a way .. This is a method of work marginal Trading in margin basis
Why is told to you and the agency cars: "If you would like to buy a car for trading there is no need to pay me $ 10,000 full value of all that is required of you is to pay me deposit the value of only $ 1000 and I will book the car in your name so that you the opportunity to sell in the market then return to me the rest of the value "
It is a wonderful opportunity and no doubt ..
Note that we said here, "booking" the car in your name .. Any car that the agency will not give you the car but will actually booked in your name and make it at your disposal for the purpose of trading them so that you can sell at the price you want and if you already owned.
But why Atatini car?
You did not pay only a tenth of its value just gave you .. the car was taken and get used ..!!
So it is Atattiyk car but are seized, but your name and the remainder of their ..
So how do I trade them?
Well .. when you know that you have a car reserved for trading in your name and that you can sell at the price you want, you can now go to the market and the search for a buyer at a higher price than the purchase price of the car.
Let's say you found a buyer in the market for the car at $ 12,000 then order an agency to sell the car buyer the car reserved in your name at $ 12,000.
Buyer will pay $ 12,000 and receive the car ..
The agency will deduct the value of a car is $ 10,000 and will respond to you Arbounk paid a $ 1,000 profit plus a full $ 2000
Since you already but I'm not planning to trade in the car it will not differentiate you to get the car or actually rests with the agency and car ..
Important that you had the opportunity to trade a commodity worth ten times the amount you paid and got a full profit and if you have the item physically.
This ensures that agency car access to the full value of the car and you also get full profit.
In this way everyone is happy ..!!
In the previous example once payment of the amount of $ 1000 I managed to get any profit of $ 2000 200% of your capital paid just because you found the company to allow you to pay a fraction of the value of the item you wish to be traded.
It is a wonderful opportunity right?
But how did this happen?
This happened because the agency allowed the cars you the opportunity to leverage your capital to double the $ 1,000 paid to any ten-fold to $ 10,000 thereby giving you the opportunity to trade in a commodity worth more ten times the actual value of your capital paid.
This is called the doubling of capital or leverage, Leverage.
When you get the possibility of doubling your capital ten times means that you return your payment - your investment - the amount of what it is you get your chance to trade a commodity worth more than ten times the value of your capital.
When you get the possibility of doubling your capital to one hundred times means that you return for payment of the amount of what it is you will have the opportunity to trade a commodity worth more than one hundred times the value of your capital.
And you will get full profit and if you have the item effectively.
That is, if we apply it to the previous example, it is against the payment of the amount of $ 10,000 you will have the opportunity to trade car worth $ 100,000, or ten cars once one .. If every car that won the amount of $ 2,000 means that the profit on the deal is complete (2000 * 10 = $ 20,000) will receive in full all of that profit return on investment to the amount of $ 10,000 as a token of a redeemer will return you in the end ..!!
Is this reasonable?
Yes, reasonable .. This is what happens hundreds of millions per day in the financial markets and margin trading system.
Is now learned how to make millions?!
To go back again to our previous example:
At the outset we have regular way trading was as follows:
You make a purchase through the payment of the full value of the car.
You have to go to the market and offer your item for sale.
If you sell your car at a higher price than the purchase price to be profitable, but I sold it at a lower price than the purchase price to be a loser.
But when you margin trading in a manner that is what happened:
You buy a car agency you to double your capital by ten times that you pay the amount of $ 1,000 as a token of a redeemer and you temporarily so the owner of the car until it is sold and re-value.
When you pay the $ 1000 provided you a car agency the possibility of trading the car that was worth $ 10,000, which it Mkntek to trade ten times your capital.
I went to the market and offered your item owned by the temporary sale.
I sell, however, that ordered the agency to sell auto car owned temporarily - and they already have in your name - to the buyer that you found in the market at a price that you specify.
The Agency for the implementation of the cars it has sold the car to the buyer, and then deducted the original value - which Batk car - that is $ 10,000 and gave You the rest part of the gain net you re-deposit you paid at the beginning.
Note here ..
That when the agency cars to double your capital ten times, they have done so to allow you the opportunity to trade the value of a car (good) worth more than 10 times the value of what they paid to the payment of the rest of the value of the car after you sell, or when you paid the amount of $ 1,000 and became the owner temporarily for the car you become indebted to the Agency the amount of $ 10,000 cars until you have paid the full value of the car, where the amount of $ 1000, which are paid just a token redeemer when paid.
If I have ordered the agency to sell auto car at $ 12,000, she would carry it and will deduct the $ 10,000 value of the car and you will return the deposit paid plus the first $ 2,000 is profit in trading.
But what if you sold the car at a price less than the purchase price?
What if I sold the amount of $ 8000, for example?
You will be required to complete the value of the car from your pocket, which will be required to pay the amount of $ 2000 in order to complete the value of the vehicle and then recovered Arbounk paid in advance.
Just as the agency cars do not share your profit they do not share your loss as well.
Whether you win or lose is not only asking you to pay the full value of the car after the sale, if ordered to sell the car at a higher price of the purchase price will be implemented and it deducted the value of the car then you are fully Arbounk plus profit.
If ordered to sell the car for less than the purchase price, it will be implemented also Stelzmk be paid from your pocket completes the full value of the car, and this amount is your loss in this transaction.
In the previous example, when I sold the car the amount of $ 8,000 you need to add it from your pocket amount of $ 2000 for the amount becomes $ 10,000 and is reimbursed for the car and be told you from bearing the loss and not an agency cars, and in all cases recovered Arbounk paid in advance.
But why not fool agency car?!
Well: When we first started dealing with agency vehicles that allow us to double the capital ten times what we paid is the amount of $ 1,000, and when ordered agency cars to sell the car at $ 12,000 - after he found her on the buyer at this price - the Agency to sell the car at the price we have set and returned to us the full deposit plus the profit.
If: If you ordered the agency to sell the car at $ 8000 will not add anything from our pocket all that the agency car is $ 1000, so the agency will make cars that bear the loss ..
So you will not pay anything ... We'll run away ..!!
So it really does not happen, dealing with an agency vehicles on margin carries a special system that we can Nkhtzareth one sentence:
Must deposit the maximum amount to be lost in the deal in advance with the agency cars.
In order to provide you the opportunity to margin trading system, which allows you to work most of ten times the size of the agency vehicles that will demand the following:
To open an account that has deposited the amount of $ 3000, for example.
This amount will be deposited in advance with the agency cars.
Agency vehicles will return to double your capital ten times leverage and will allow you to trade a commodity exchange to pay only a tenth of its value as a token redeemer only.
Will you buy a car, and since it does not you only have to pay the tenth of its value, since the value of $ 10,000 it does not you only have to pay $ 1,000 as a token of a redeemer.
When you buy the car will be deducted from your deposit any will deduct $ 1000 will call this "used margin used margin".
Will remain in your account is now $ 2000 unused badge "the margin available usable margin". This will be the amount is the maximum amount you can afford to lose the deal.
Thus ensuring the agency you were the car will bear the loss that occurred and are not, and will not be afraid to escape because there have in your account the amount you can afford to lose.
When you order the agency to sell the car the car the amount of $ 12,000 Agency will implement it and the car will sell $ 10,000 and deducted the value of the car and would Arbounk plus profit fully and will it add to your account with bringing your account has = $ 5000.
But if he ordered the agency cars to sell the car at a price below the purchase price for the transfer of $ 8,000 will be agency auto executing the warrant and sell the vehicle and then deducted $ 2000 from your account have to complete the rest of the price of the car, then would you Arbounk to your account and will become your account with only $ 1000.
Did you know why it's called this method of work, "margin trading system"?
This is because it is dealing and trading on the margin of profit and loss in trading commodity without having to pay full value, where the added profit from the deal for shops and set off against the loss margin account stores.
What do you understand as well?
It is understood you can not in any deal to lose more than the amount in your account with the company that allow you margin trading system.
What are the goods that can be traded on a margin?
There are countless numbers of goods possible by the introduction of margin trading, buying and selling these commodities in international stock exchanges for each of them:
Most important of these commodities:
And we'll talk about each of them in some detail:
Stock market Stock market is the most famous and most markets ahead
And equity markets are simply stock exchanges in which they are buying and selling shares of companies.
Process is essentially that you open an account with a brokerage firm brokerage, then you choose your shares on the basis of what you expect the stock price will rise after a period of time, whereupon the request of a brokerage firm that buys you a certain number of shares of this company .. And then wait to be high shares of this company is already selling what you have contributed so you get the profit.
Is the follow-up shares of companies on the stock exchange allocated to it, if the company would like to buy shares is a U.S. company listed in the New York Stock Exchange Vstracb the price of this company in the New York Stock Exchange, although the company would like to buy shares is a local company in your country Vstracb price of the shares of this company your local Stock Exchange - Stock Cairo or Amman or Kuwait, for example - and so on.
Of course, is the high and low price of the company's shares, according to the performance of this company, if the performance of the company well will want a lot of people buy their own shares and would increase the price, and if performance is poor will want a lot of people to sell shares of this company - to get rid of them - and thus reduce the price of the shares of this company.
To make money trading the stock market and your task is very clear:
Is looking for a company that you expect in the near future - or remote - that share prices will rise, whereupon buy now and wait some time if your expectations come true, share prices will rise this company already, then will sell the purchased shares at a higher price and thus be profitable.
As to how you can expect that the price of shares of a company will rise or not?
This is precisely the point ..!!
The expectation these need to be careful study of the many things difficult to talk about here, and this analysis is the company's performance and the performance of the state of the economy this company and a lot of other things ...
What is important here to know that the trading in stocks can be the path of the traditional, so that pay the full value of shares and thus actually owned and then sold in a timely manner.
It is also possible to trade stocks on a margin to pay a certain part of their value to possess it temporarily, as happened with you in the example of cars before.
Would be interested to know that the majority of traders dealing in shares rather than the traditional system because the margin trading in stocks on a margin in some cases is complex and different rules and regulations according to each country.
If there is a modern way of trading stocks on a margin called CFD short inter contract for difference, a method are more prevalent in the recent period is characterized by simplicity.
What is important to learn now that the trading in stocks on a margin as possible, although not common lot.
Commodities commodity markets are markets (stock market) that is where the buying and selling of commodities, these commodities:
Food: wheat, corn, soybeans, barley ... Etc..
Energy resources: crude oil, heating oil, natural gas ... Etc..
Industrial minerals: iron, copper, chromium, aluminum ... Etc..
Precious metals: gold, silver, platinum ... Etc..
Each type of goods, the former market of its own, the goods are traded on a margin so as to choose a good think that the price will rise in the near future, whereupon buy to sell after the price rise actually maintain a full profit to you.
Sold these goods in the form of units fixed as mentioned above for each item by a special unit, for example, with its gold unit equivalent to approximately 16 kg each unit called Lott lot.
When you buy "Lotte" of gold that you buy 16 kilograms of gold price in the hope that it sells at a higher price later, you will pay a fraction of the price of the gold margin user to be booked in your name exactly as stated in the example of cars.
Will then and now that there are 16 kilograms of gold with your name .. Will follow up the gold prices in the international stock market in gold when you find that the price is up to order your carrier to sell the name Lout current price the company will implement the order and deducted the value of the lot of gold and add to your account balance after the gain margin to return to you the user.
good luck 2 all in a worled of forex