The foreign exchange market is the interbank foreign exchange market. The term forex only stands for the exchange of currencies and does not denote all transactions involving currencies. Market operations are trading, speculation and hedging. Thanks to the rapid development of global Internet services. The Forex market offers real opportunities for everyone of all ages. It will require internet access and a trading platform.
About the forex market:
In August 1971, US President Richard Nixon expressed dissatisfaction with the ease of converting dollars into gold, and in December 1971 the Smithsonian Accords were signed in Washington, which included changing the volatility rate against the dollar from 1% to 4.5% % (and 9% for empty pairs). This ended the system of fixed price pairs. These reforms aimed to liberalize the price of gold. Before these changes, exchange rates were set according to the gold price standard, but after these reforms, volatile gold prices caused the various pairs to fluctuate inevitably. This led to the emergence of a new activity, currency trading, so currency prices did not depend on the price of gold, but on supply and demand in the market for different currencies. In January 1976, during a meeting of the ministers of the countries of the International Monetary Fund in Kingston, a new agreement on the world monetary system was concluded in the form of amendments to the Articles of the Monetary Fund Agreement. A number of countries refused to peg currencies to the dollar and gold. However, in 1978 these terms were approved by the International Monetary Fund. From that moment, currency fluctuations became the principle of trading on the foreign exchange market.
The new monetary system is not based on determining the purchasing power of money based on its gold value. The money of the countries – participants in the agreement – was no longer tied to the official value of gold. The exchange began on the foreign exchange market at flexible rates. The establishment of a variable interest rate system led to the authority of central banks to influence exchange rates and influence the country’s economic situation through the application of certain measures. Importers, exporters and banking institutions participate in and control the price of currency liquidity as currency liquidity now reflects the company’s financial condition, whether positive or negative.
Daily trading volume on the Forex market:
There are no exact figures, this market has become more than a recipe, and there are no mandatory conditions for the collection and publication of transaction data. In 2005-2006, the daily trading volume on the forex market was monitored at about $2-4 trillion. Some of this money is put back into margin trading, which allows contracts to be made for amounts that exceed the real funds of either party. Regardless of the type and goals of transactions, the large trading volume guarantees high liquidity in the forex market.
Making profits from the forex market:
There are many ads on the Internet about ways to raise money in the foreign exchange market, but it is necessary to take into account that this work is not a regular job and does not have a fixed salary. Only you can determine your reward based on your wins and losses.
This business is about starting your investment with the inevitable risks. Margin trading in Forex has several characteristics:
There is no job gradation, you do not need huge capital, the procedures are similar, you do not need continuous training, the ability to adjust the win and loss rate.
These special characteristics make margin trading attractive for entering the forex market with a small budget.
You can familiarize yourself with the forex market through demo accounts.
All you have to do is select the desired brokerage company, download the trading platform and then register a demo account.
Every business brings profit or loss. In order to increase the size of your profits for your losses, you should study the Forex market.
Once you are fully aware of the rules of forex trading, you can become a successful trader.
What are Japanese candles?
Candlesticks are one of the most popular technical analysis methods in the forex market. The beginnings of Japanese candles go back to the 18th century and are still in high demand from traders today. Japanese candlesticks get their name from their shape on the chart, where the chart is represented by what looks like candles. The Japanese candlestick chart clearly reflects the relationship between the open and close price, showing the highest and lowest price reached by the pair during a given period. The coordinate system of the candlestick chart depends on a cylinder, called the body of the candle, which shows the range between the open price and the close price.
The lower horizontal line represents the opening price while the upper horizontal line represents the closing price. The top and bottom horizontal lines show the highest and lowest price over the period. Depending on the direction of currency price movement, the body of the candlestick takes on a specific color, usually black or white.