Why work in the currency trading market?
As you know, there are many types of commodities that can be traded such as stocks, commodities, bonds and many more.
Each example of a commodity has its own lineage, where one chooses one or more of these cases to sell.
On that point is a mass of reasons why the currency trading market is better than trading other types of markets and the most significant of these causes:
- The currency market is open 24 hours a daylight
For direct exchanges, a limited period of time is used every day as the bourse opens at the dawn and closed in limited time.
For instance, if you require to trade US stocks, you can exclusively buy and sell when the New YorkStock Exchange pens at 9 am (EST) to 4 pm at the same time.
This implies that you are restricted at this time to monitor the securities industry, which requires full-time, and this gives to all other stock exchanges, each according to the timing of the state-affiliated to it.
If you turn in a Gulf nation and desire to trade on the New York Stock Exchange, you are restrained to run between 4 pm and 11 pm, which corresponds to the timing of the opening of the New York Stock Exchange for most middle eastern countries.
Such a divergence in working hours causes many troubles and difficulties in the long term.
On the exchange of the currency market and because there is no specific central office, and because operations are transmitted out by computer networks, work along the exchange does not stop the currency 24 hours.. Just market has just been off two days a week (Saturday and Sunday).. !!
Banks and financial institutions open in Japan at 12 am GMT (8 am Japan time), buying and selling begin and the Japanese institutions are closed only at 9 am (5 pm Japan time).
But the work will not stop because once the Japanese and Asian institutions are shut down and the most important ones are in Tokyo, Hong Kong and Singapore so that the European institutions and the most important in London, Frankfurt and Paris have opened their doors. , And when the American institutions close their doors to state psychiatric hospitals in Australia and New Zealand in circulation, and before closing the last doors of the Japanese institutions have begun a new day at work.. !!Thus and depending on the timing of each state it will be for you to trade continuously for 24 hours.Except on Saturday and Sunday.. Because it is a holiday in all nations
When US institutions close on Friday at about 10 pm GMT it will be Saturday morning in Australia and New Zealand which is a holiday as you know so work stops until Sunday evening at 10 pm GMT, where Monday morning in Australia and New Zealand will be back for the next week Behind the daylight. In each country and granting to its timing to the close of the following week and so on.
Of course you will not mete out with all these introductions in all these countries separately but will distribute with the forex broker company, which will unite you in turn with all other establishments across the universe.
What we are interested to know here is that currency trading
goes on 24 hours a day, and this gives you the opportunity to take the time that suits you best without fear of "arriving late" in the currency market cannot get too late, Because opportunities are many and round the clock.Working in currency trading on the international exchange of currencies
You are today learning how profits are realized in currency trading in principle.
The principle of currency trading is non-dissimilar from the principle of trading any other good.
The selling and buying of currencies between the various banks and financial institutions linked to each other through the nets, where these institutions and around the world exchange all day and night currencies, each sells and buys for his clients, which may be States or transnational corporations or people.
This is the international exchange of currencies, which we have supposed it is a stock exchange through the networks of communication, data processor and Internet OTC.
You will also be linked to this market and will be able to buy and sell currencies by contacting the brokeryou choose to trade with, which will in turn receive hundreds of establishments around the globe.
Of course, you will be affiliated with the brokerage company through a special platform will provide you the currency rates and you will be able to purchase or trade these currencies through the brokerage company - through this program - to sell or buy the currency you want At a price you deem appropriate.
Now learn that there are two cases of entities that buy currencies from other nations
The first case is buying currency to be utilized as an exchange tool for trade, investment, and travel.
And the second case are those who buy currencies using them as a commodity, IE to sell them and to claim advantage of the difference in price between buying and selling. These are the speculators, and you will be one of them.
In front we move farther into this exciting field, we will draw on some central concepts
Every bit, you know, each country possesses its own currency and the international market gives each currency a special symbol known to ease the interaction between traders without mistakes,
For lesson, may be similar to several countries dealing with the dollar, is the name of the currency of the United States of America and the currency of Australia and the currency of Canada and many nations.
Thus to avoid mistakes in trading, it is internationally agreed that the currency of each nation will be thrown its own symbol known worldwide.
For instance, the US dollar symbol is USD
The Canadian Dollar Symbol is CAD for Canadian Dollar
The Australian Dollar symbol is AUD for Australian dollar
Thus, for each currency a country follows its own symbol.
In principle you can perform currency trading of any nation in the world. But trading in the currency market is mainly focused on four currencies:Euro: a single European currency and EUR symbol.JPY: The Japanese currency and the JPY symbol for the Japanese yen.British Pound (GBP): British Pound (GBP) short of Great Britain pound.CHF: Swiss currency and CHF symbol for Confidralic Helevitica Franc.
In the currency market, 80% of the currency trading takes place in previous four currencies.
But for what?
When you want to buy the yen what you will pay for it?
Dealing with previous currencies is all against the US buck.
Remember, currency trading takes place in the form of pairs when you buy a currency, you must sell - pay - against it another currency, and frailty versa.
In the currency market, when you buy the euro, you will sell the dollar against it, and when you sell the euro, you will purchase the dollar against it.
You may wonder: Why do most transactions take place in these four currencies? Can not buying and selling other currencies?
Answer: Have you ever remembered about moving to a cashier and asking for Thai bat? !!
If you examine it you will find it hard to get a cashier selling you Thai Baht
Because few people are able to use the Thai currency in your land.
If you proceed to the cashier to buy or sell the US dollar or the pound sterling, for instance, you will get them easily, because there are many people dealing with these currencies are acceptable not only in the United States and Britain but from different countries in the Earth, that the demand for them is high.
Because the euro, the yen, the pound sterling and the US dollar are the currencies of the countries with the largest saving in the globe, and because most transactions between states and individuals are in one of these currencies.