The Foreign Exchange Market (Forex) is the largest financial exchange in the world. The amount of money vomume traded on the Forex market every day even reaches trillions of US dollars. The actors involved with this currency trading include big banks, central banks, currency speculators, multinational corporations, financial institutions and sometimes governments also play a role to stabilize the value of the currency.
Currently, a lot of retail traders (individual traders) who also participate in this forex market with the help of online brokers - commonly called forex brokers.
There is no exchange or place where buyers and sellers meet in the Forex market. All trades are done through computer network among traders in various parts of the world. In addition, unlike the stock market, the forex market is open 24 hours per day, as it is a global market. A market player in Hong Kong may be trading with a market player in Australia, while American market participants are sleeping.
There are several market systems in the Forex exchange system. First, there is a spot market. Spot market transactions are based on current currency values (real time prices).
In addition there are two types of other forex markets, namely forward and futures markets. In the forward market, the buyer and seller agree on the exchange rate and the date of the transaction that has been set for a certain time in the future.
In the futures market, the currency price is bought and sold on the basis of contract size and due date. Futures trading occurs in public commodity markets.
Unlike stocks, currencies are traded against each other. If the stock price is quoted (quoted) from the price per share. While the exchange rate is pegged with other currency exchange rates.
So if you look at the exchange rate of a currency on a television show or other media that says USD / IDR = 13,000, it means that the value of $ 1 equals 13,000 rupiah.
Forex market is generally considered less stable than the stock market because in one day trading can reach 100 pips, even more. However, currency movements in the forex market move in line with demand and supply from market participants. In addition, economic news released every day to make the price movement becomes very high.
If you are interested in a flexible investment, with the opportunity to earn a profit per day, why not try to start investing in forex trading?
No comments:
Post a Comment