Forex game, Forex market

Игра на форекс, валютный рынок форекс

Forex game for someone remains just a gambling game, and for someone becomes a way of investing money. Forex comes from the English word Forex or foreign exchange, that is, currency exchange. This is the largest in the financial world market. Really, Forex in the strict sense does not apply to investment. But it includes all currency exchange transactions in the course of international trade.

Forex market

Forex market






  • Easy access to the market, a well-developed segment.
  • No money in rubles.
  • If you wish,, There is a chance to divert profits from taxation.


  • Most brokers are not transparent, There is a great risk of counterparties.
  • Profit not only is not guaranteed, but under the big question, depends on literacy and luck trader.

Overview of the instrument

What is the Forex game

To date, most currencies of the developed countries are freely navigating relative to each other. Selling goods abroad, the exporter goes to market and sell their earnings. At the same time, importers need to buy currency for, to purchase imported goods. They are the main participants of the Forex market.

But if the Forex market only participants in foreign trade transactions, they would be forced to spend hours, and the days of waiting for each other, yet to meet suitable counterparty, ready to make a deal. In this situation, come to the aid of intermediaries-banks.

Credit organizations, serving the international trade, exhibiting firm quotes for the purchase and sale of one or another pair of currencies in relation to each other. As competition in the market is very great, It spreads-the difference in price-comes on most liquid pairs, such as the United States dollar/euro only until one item.

But the possibilities of each individual bank not unlimited. Therefore, they transmit their positions to each other, selling assets, where there excess, in Exchange for those, required. Thus operates the interbank currency market.

In addition to banks, seeing an opportunity to capitalize on changing courses, participation in trade takes and another class of buyers and sellers are speculators. For them, and invented the game of Forex trading. Economic entity to market speculators is primarily providing liquidity. And Furthermore, they assume the risk of price changes on one or another currency, Let frequently and for a short time while open position.

There is also another class of participants in the international currency market Forex, Perhaps, the largest volumes of transactions. This central banks, made arrangements for the stability of national currency. As well as conducting economic policy.

That affects the Forex market

Forex Exchange rates reflect the economic situation. Since currency Forex is an ordinary commodity, then its price affects supply and demand ratio, that, in turn, depends on the balance of trade. The more the goods sold in a country, the higher sales of exporters. The more of it is imported, the higher the demand for the national currency. In addition, In addition to the goods and services in the world is the movement of capital. If the economy river flow investment, the most likely, This increases the demand for her money. And vice versa, the outflow of capital reduces Exchange rate.

Other factors, not less than, and even more significant, are inflation and interest rates. If inflation is high, This leads to an outflow of funds. Vice versa, high interest rates with low inflation makes the economy attractive, a currency is in demand.

There are a number of macroeconomic indicators, in which you need to understand in order, to play on Forex profitably. For example, rising unemployment reflects the slowing economy. And the rapid rise of GDP attracts investments, increases export potential, and, Accordingly,, increases the demand for national currency.

What currencies are traded on Forex

Theoretically, the Forex game can be any freely convertible currencies, that is such, on sale which imposed minimum restrictions. However, the most liquid currency pairs are considered to be euro-dollar United States, dollar to Japanese yen, British pound to us dollar, dollar to Swiss franc.

Currencies "second Echelon", with a large spread between the sales price and purchase, can be attributed to Canadian dollar, Australian dollar, a number of currencies in the Asia-Pacific region, as well as several European countries, not in the euro zone.

Lot size for Forex

Each other banks conduct transactions mainly in large amounts-standard is considered for example lot 5 million euros or United States dollars. At the same time for customers to volume can be divided into smaller size. An even smaller amount of transactions for small dealing centers, where the game takes place on Forex. It should be understood, that such companies can hardly get the same favorable conditions, as when requesting quotes from the world's largest solid markets. Thus, more often than not they don't spend on international market every client transaction, and close only the common position.

Recently in fashion in the financial markets entered the so-called mini-Forex, When the size of the operation and does little, What makes this segment available for everyone. But if with large lots can still be talking about some kind of investment option, the microscopic amounts are really the most suitable process definition – This is the game of Forex trading

Leverage in the Forex market

In order to carry out transactions on the Forex market, no need to have the entire amount. The basis for such an opportunity lies in the very heart of the trade. Suppose, party bought 1 million euro. But it should not enumerate the corresponding quantity of dollars immediately: transactions are made with next day delivery, two days or longer. Thus, If he, for example, during the same days to sell the, that bought, It makes no sense to transfer money to someone first, and then back. In order for the, that the parties were in the calculation, It is only fair to list each other the net difference between buying and selling.

This is exactly what the game is built on Forex. And actually happens: There is no need to have the entire amount of the desired currency – enough to close a position opposing the deal on time.

But where is the assurance, that the investor will fulfil its obligations by means of difference? In order for the, to ensure that a system of guarantee fees. To open a position requires a certain percentage of the total transaction amount. The relationship to the amount of allowable operations and there are so-called shoulder. For example, for purchase 100 th. Euro security deposit is 5 th. Then leverage effect or shoulder as well 5 divided into 100 or 1 to 20.

How are transactions on the Forex market

On the international market of currencies accepted access specialist – Professional party, that declares a firm quotation on purchase and sale – calls the two prices. That proposal was honest, client in advance not announced, whether he wants to buy or sell. The difference between the two prices is called the spread. As a rule, for the most liquid currency pairs it can be equal to the total 1-2 items. They constitute income intermediary, Commission on Forex market more often, no fee will be charged..

Specialist, organizing an opportunity to Trade Forex correctly call dealer, as the Foundation of its activities – billing firm quotes, that is, the offer. But in Russian practice more stick title “foreksnyj broker” or “Forex broker”. Maybe this happened because, that many small companies operate as brokers-intermediaries and further applications – currency dealers.

After, as the price listings are named, in order for the, the transaction took place, should be made as soon as possible declare the purchase or sale of. It is considered bad form to stretch the decision point. The point is that, that foreksnyj broker-dealer can no longer change the price, but in the meantime, the market is in motion. If the client is constantly “thinking”, the result prompted a wider spread in the future, such, to cover possible loss.

Of course, such hard, but no written rules apply to transactions between banks. Forex game is governed by its own laws and procedures. Widespread practice of so-called “requotes” – When the broker changes the quote at the very last moment interaction with the client.

At present, the procedure for conclusion of transactions is simplified to the maximum: everything is done via computer, through the introduction of applications for purchase or sale. Nevertheless,, basics “live” trade should know: and suddenly have to operate in manual mode in the event of a network failure?

Additional information on the market you can get in our article Forex.

How to start trading in the Forex market

The game of Forex trading must start from learning the basic terms and concepts. Next you should understand at least the basics of fundamental and technical analysis. Only then it is possible to determine the amount of investment.

In spite of the fact, that Forex market is potentially one of the most profitable, at the same time, Forex game is considered one of the most dangerous, Therefore, one should never invest in it last, that there are, and the more credit money.

The next step – Choose the Forex broker. The best way to do it, comparing proposals the rating of Forex brokers our site.

Example of use

An example of successful trading at Forex market

Most active game of Forex trading is conducted on the currency pair EUR/USD, then there are the euro against the dollar United States. Suppose, the trader sold euro (see. Schedule) costs 1,1405. Suppose, the size of the operation – 0,1 89lot, or 100 th. United States dollars. And costs 1.0805 the position was closed, i.e. EUR, Vice versa, bought against the dollar.

Thus, profit will be: 100,000 * (1.1405-1.0805) = 100,000*0.02 = 2,000. With this size of attachments, It should be noted, will be a standard shoulder 1:200, total 500 United States dollars. Forex game failed.

An example of a botched trade in the Forex market

Forex market, Unlike operations with securities, has no profitability, related companies, interest for the loan, and other things. Forex game is, that earned one necessarily plays another. So while trader kept its winning position for (in practice not very real) 200 items, market – not important, one player, or more, passing each other position – suffered a loss at exactly the same 200 items. Forex game this time failed.

Forex market, the euro-dollar chart



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