Global currency market and money exchange
Trading is the largest decentralized financial market in the world. The rapid development of this market has a trade volume of more than three trillion dollars a day. Foreign Exchange, often abbreviated as Forex, or even simpler FX, is a unique world money market where currency exchanges every day. For those who like to invest and manage themselves with their money, avoiding brokers who often take large commissions and often show insufficient professionalism in their profession, this is an ideal place to invest. The commodity goods, which they are selling, are the foreign currency of various countries.
Money can be traded with other world currencies, but also with gold, silver and platinum, i.e. value metals, and some trading platforms are available to customers and trading with oil. With global development and the capillary spread of the Internet, and especially since the introduction of ADSL technology, Forex became more accessible and gave an additional boost to market development. In fact, it is an ideal currency trading tool because today’s complete management of this market is computerized. And another special feature of this stock market: it can be traded continually, 24 hours a day. So, interested person can do the trading activity whenever he gets time of do.
It witnesses the great instability of world currencies, sometimes within a couple of days, if not even in a few hours, they lose or gain value. Thus expressed price variability leads to very high profits, so investments in this market can be considered as speculative case for almost every other market. The high level of financial leverage commonly offered by financial operators, i.e. brokers, enables investors to achieve very high earnings with relatively small capital. Forex trgovanje offer their customers leverage to a ratio of 1: 200 in an instant you can find 1: 1500 and in such cases the client should invest only half a percent of the desired investment. In practice, this means giving a client a loan, and it only covers the risk of a financial operation, it is a presumed percentage of the currency variability in buys or sells.
In English term it is widely used in many of the world languages, it is the difference between the purchase price and the selling price of a particular currency. This difference in the price with which they sell and buy the currencies of the finishing operators and intermediaries is in reality their margin, i.e. earnings on each performed operation. For convenience, in Forex, the spread differs in points or points instead of percentages. This difference is very small, as opposed to that of our exchange offices, and usually has a value of 3 points (0.0003). One point corresponds to one hundredths of a hundred, or ten thousandths.
Various Platforms Online:
In the past days, people don’t have any source to forex trading. But, these days such kind of things is much possible easily as we are living in the technology world. Today, with the most common Internet connection, it’s better if it’s an ADSL connection, we can directly link and use then so-called Forex Online, simple software user friendly platforms that allow us to buy or sell foreign currency online in a couple of easy steps . These applications provide us with real-time information currency exchange rates and their historical charts and news from the world such as interest rate changes decided by some central bank, the trend of spending in a country, etc. needed to make the decision to whether we will buy or sell a pair, and also provide us with a technology that allows us to currently make the desired purchase sale operation. All this makes money trading very simple today.
Using the Stop Loss Order:
In certain situations, when the flow of currency with which we are trading is favorable, we can use a well-known Forex technique to earn a real high earning and which is the most beautiful of all, virtually without any risk. This technique applies, in favorable circumstances, shifting the value of the “Stop Loss” in “positive” field where even when this command is executed realize gain. In parallel with this operation can be moved and the value of the “Take Profit”, if we set up, to greater profits. I would also like to point out here that when opening a position it should always besets the Limit Stop Loss automatically closes the position at the default value when the flow rate is unfavorable, thus limiting the negative outcome. It is also advisable to set up the Take Profit order, which automatically closes the position when the profit reaches the desired limit that we set.
Let’s repeat a well-known rule that Stop Loss must have a greater margin at the opening price than the Take Profit, to avoid the operation being shut down automatically due to normal, this is a small change in price. In addition, it must also have a large margin to sustain these oscillations. Many traders maintain that the minimum value should be 100 points from the opening price. If it is a leverage of 1: 100, this in reality means risking the entire invested capital.
It is really very much important to always keep a certain margin to stop the loss so small changes do not cause automatic closing. The same applies to the value of the profit margin limit that can be left with a broad margin compared to the current price if we are in front of the computer and control the situation in real time. In fact, in this situation we cannot set a limit that can often be an advantage because the flow has changed so fast that two limits cannot be changed in a very short time. With this technique, we reiterate that it can only be applied when the flow is very advantageous, and earning a few hundred points in just one day can be realized. By achieving broad operating management margins, the position can be kept open for a long period, thus exploiting the ongoing trend of some currency.