EASY WAY OF MAKING MONEY ONLINE FOREX TRADING
The foreign exchange market also referred to as “FOREX” or “RETAIL FOREX” or “FX” or “SPOT FX” is the largest financial market in the world, with a volume of about $3.2 Trillion a day. If you compare that to the $25 billion a day volume that the New York stock Exchange trades, it actually equates to more than three times the total amount of the stocks and future markets combined.
WHAT IS TRADED ON THE FOREIGN EXCHANGE?
The simple answer is money. Forex trading is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker or a dealer. They are traded in pairs. For example, the Euro against the US dollar (EUR/USD).
In general, the exchange rate of a currency versus other currencies is a reflection of the condition of the country’s economy compared to the other countries’ economies.
Unlike other financial markets like the New York Stock Exchange, the Forex spot market has neither a physical location nor a central exchange. The forex market is considered an “ Over-the-Counter” (OTC) or “Inter bank” market due to the fact that the entire market is run electronically within a network of banks, continuously over a 24-hour period.
WE HAVE TWO MAIN KINDS OF EXCHANGE RATE SYSTEM
Fixed Exchange Rate System (Convectional forex trading)
Free Floating Exchange Rate System (Open market trading)
Fixed Exchange rate System: This is the system adopted by the Central Bank of any country to regularize the exchange rate of its currency over other currencies. The exchange rate of a currency to other currencies can be adjusted through the instruments known as revaluation and devaluation in order to enhance steady domestic growth and keep pace with the global economy. The exchange rate of a currency over other currencies per time is directly proportional to the growth in gross Domestic Product (GDP) which ultimately determines Trade Balance (Surplus/ Deficit) and the demand on its currency.
Free Floating Exchange Rate System: On-line forex trading under free floating exchange rate system is regulated by the body known as “CFTC” (Commodity Futures Trading Commission). This is an open market where exchange rates fluctuate under market forces )the law of demand and supply). The exchange rate of a currency to other currencies experiences appreciation or depreciation as a result of the technical and fundamental factors affecting its economy.
WHAT DO YOU NEED TO TRADE FOREX?
Quality training
Computer with Internet connection
Start-up capital (minimum of $100)
UNDERSTANDING CURRENCIES AND QUOTE
email us
[email protected],skype felix3caps
web site
www.fxswis.comphone number 00306950293909
Posted: at 13-10-2010 11:14 AM (13 years ago) | Newbie |
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