Exchange is the world's largest market, with a volume close to 2 billion dollars a day.
Listing rules Forex:
Currencies are traded in pairs, the first coin (Listed on the left) is recognized as the base currency, while second currency is called compensation.
The quotes are using a five-digit number whose last decimal represents a value dixmillieme currency. Dixmillième This is called "Point" or "Pip" …
For example: For the pair EUR / USD is a "Pip" difference between 1.2512 and 1.2513 …
Spread:
Unlike the stock market, there is no commission. "Spread" is applied between the purchase price and the sale of price.Spread the value can vary depending on the pairs, the size of your account and brokers.Spread generally held 2-10 pips.
Margin:
The forex trade is discovered by the recruitment of a game in the form of "lots". The "margin" or the minimum cover required for 1 lot of EURUSD between Coutier utils Metatrader platform is $ 1,000 …
The change in the price of currency 1 pip in parity EUR / USD, leads to a gain or a loss of $ 10 .0.01 to the plot, the gain or loss is 0.1 per pip.If account the margin is insufficient, some brokers automatically close all or part of the current position. Some other close all or part of the current position of negative equity.
Equity is the net asset value account.
Dynamics of Forex:
Financial analysis:
The currency market is influenced by changes in interest rates applied to each central banks of each country …
These same rates are under the direct influence of macroeconomic data, the most important are those of the USA …
Technical Analysis:
The practice of trading in this market shows that it is also strongly influenced by notable figures associated fondametaux of technical analysis …
Pivots Point – Thresholds and resistance – Fibonacci etc.
Dangers of Forex Market:
1.Very strong potential volatility.
2.It is essential to test their strategies before go to virtual reality!
3.Profitable trade is done with the money market!
4.Major advantage forexyou not have loss of Bif.
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About the Author:
I am a Forex Trader.I love currency trading.
Article Source: ArticlesBase.com – Important Factors Of Forex Market
11/05/09 – Daily Forex Market News from cmsfx.com
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