International currency market FOREX (FOReign EXchange) – the largest circulation of money world financial market, covering all the major developed economies. FOREX Market allows its participants to perform the exchange of one currency for another. Exchange rates determine the relative amounts of each currency in this exchange. FOREX and now has a turnover of 3 trillion. Dollar a day
We (the traders) can make a profit by buying the currency at a lower rate and selling at the higher, or vice versa – at the higher selling and buying at the lower. The share of speculative trading accounts for most of the transactions of foreign exchange market FOREX.
FOREX market is the OTC market, and operates around the clock in various financial centers around the world. Early morning trading starts in Asia, then as the opening of financial centers is moving to Europe and finally America. Hours of work are overlapped, so the foreign exchange market operates around the clock. Every second of the FOREX occur hundreds of sales transactions currency.
The currencies that are involved in the transaction, usually identified by three-source, which is used in the payment system SWIFT for example: USD – U.S. dollar, JPY – Japanese yen, GBP – pound sterling, EUR – Euro, CHF – Swiss Franc, CAD – Canadian Dollar, AUD – Australian dollar.
WORKPLACE Trader
Computer and internet access
It has long been the subject of the first computer is necessary for the trader. Now we can say that the trader’s computer must be connected to the Internet. In addition to online trading and information systems, the Internet gives the trader a lot of other opportunities.
Among them: the conference for traders, news and analytics, software as well as libraries, bookstores, a collection of useful links and much more. Many Web sites offer analytical articles, forecasts of economic indicators, calendar of economic and political developments, technical analysis carried out by well-known experts.
Software
To work in the market forex trader need software for graphical analysis of the market and directly to the transactions (or trade-terminal analysis). We offer our clients the best of the most popular commercial and analytical Terminal: MetaTrader and FXDD Trader.
METHODS OF ANALYSIS OF FOREX MARKET
Fundamental Analysis
Fundamental analysis is an analysis of economic and political status of countries, currencies are traded in the market of Forex. The objective of fundamental analysis is to assess the possible impact of events on the movement of exchange rates. Fundamental analysis includes the analysis of economic indicators.
Technical Analysis
The basis of technical analysis is based on an analysis of graphs. They say that the schedule – an embodiment of the impact of fundamental factors on the market.
The analysis takes into account the following postulates:
Inside the graphics are absolutely focused all the information about the market;
market has a memory and, consequently, on the assumption that in the past, it is possible to predict the future.
Based on these assumptions to develop a wide range of indicators of technical analysis, the objective of which is to help with the “prediction” of future movements of exchange rates.
Technical analysis is based almost entirely on an analysis of prices and volume. Below is given the interpretation of the various fields, determining the price and volume of currency trades.
Opening price (open): price of the first transaction of this period (for example, the first transaction of the day). In the analysis of daily data opening price especially significant because it reflects the unanimous conclusion reached by all market participants by the morning – but it is known, «pillow evening».
Maximum (high): the highest price of the currency in a given period. This is the level at which sellers have been more than buyers (ie, willing to sell at a higher price is always a maximum – this is the highest price at which buyers agree).
Minimum (low): the lowest price of the currency over the period. This is the level at which buyers have more than sellers (ie, willing to buy at a lower price is always, but at least – is the lowest price at which sellers agree).
Closing price (close): last price of currency over the period. Thanks to its wide availability of information, this price is often so used in the analysis. Most analysts believe it is important the relationship between the opening price (first price) and closing (last price).
The amount (volume): the number of contracts that were entered into transactions for the period. The relationship between prices and volume (for example, price increases on the background of the increasing volume) is of great analytical value.
The price of demand (buyer) (bid): the price of the market maker is willing to pay for the currency (ie the price at which you can sell).
Price Proposal (the seller) (ask): price at which the market maker is willing to sell the currency (ie the price at which you can buy).
These simple values are the basis of literally hundreds of technical tools used to examine the price ratios, trends, patterns, etc.