Forex
is abbreviation of foreign exchange. The exchange of foreign currency
is call foreign exchange. For example Eur in to USD dollars. Forex
market established in 1971. This is the market where we can sell and buy
international currencies. This market is the biggest market of world.
The daily investment of this market is 4 trillion US dollars according
to a survey. Forex market opens 24 Hours. This is possible due to the
different time zone of different countries in the world. When European
market is closed. Then Usa market opens. Asians market stats the works
before Usa market close. And when Asian market close then European
market opens for next day. In this way this market opens 5 days in a
week.
HOW DOES FOREX MARKET WORKS:
As
we know the exchange of international currency is called foreign
exchange. This works according to its name. In forex market Each
currency is sell and buy . For more explanation I explain you with a
example.
For example
As
you know the money exchange business. This business is very common on
small scale. It is difficult to live without this business now a
days. Because the tourism has increased all over the world. If one
travel for other country and work in that country and earn money in the
shape of that country currency. And send his/her money to his/her
national country. When he/she sends his/her money in to his/her country
for their family his/her family will have face difficult because that
currency is not valuable for his/her national country then here the
money exchanger play the role. He exchange foreign currency according to
that day rate in to his/her national currency.
Remember That
The money exchanger complete two task during this transaction.
1: Buy ( National Currency )
2: Sell ( Foreign Currency )
Like that if a tourist visit your country. He will exchange the currency 1st
even he is American , Japani or British. He will sell his country
currency and Buy the other country currency. By doing this he is
increasing the value of your country. If the currency value of any
country will be increase then Its currency will be Buy. Forex trading
is a same Business. In this business you sell and buy the currencies.
This is a international business that is why it is very vast than local
business. In local business Investment is high and profit is low. But in
forex business Investment low and profit ratio is High. The currency
rate changes daily in local business while in forex the currency rate
changes in every second. Because whole world is involve in this
business. The best quality of forex is that you can also trade in Gold ,
Silver and Crude Oil.
WHAT IS TRADERS:
Buyer and seller of currency is called trader in forx.
WHAT IS BROKER:
The
process of trader order is called broker. If trader orders for Sell
broker will sell it if trader orders for buy broker will buy it.
THE QUALITIES OF BEST BROKER:
The broker must have following qualities . Please check the following quality before register with any brokers.
REGISTERED BROKER:
Is this broker is Registered with any regular authority? If this broker is in USA then Check this is registered with (NFA) National Future Association or CFTC. If
broker belongs to British it must be registered with ( FSA) Financial
Services Authority. If broker is not registered with any authority then
do not register with this broker.
CUSTOMER SERVICES
If
broker is registered with any authority it is good . But it is also
important that broker is providing good services. Broker must have
connect with customer with
1: telephone
2: E-mail
3: Live Chat
COMMISSION OR FEES
It is important for best broker that broker should not charge the fee and any hidden charges.
SLIPP PAGE:
In
slip page order is slipped. For example you order the Broker at 1.3333
of the pair of EUR/USD bus after some time that order placed at 1.3334
or you are not able to get order. Then would be loss for you.
SPREAD:
The difference between buying and selling price is called spread. That can be 0 to 6. The best broker has adequate
spread. No one does not charge hidden spread during the trading. In my
opinion spread is very important part in forex trading. Because the we
will have to sell the currency which we buy. That is why spread must be
low.
MARKET PREDICTION:
It
is important duty of broker that aware the customer maximum about
market. And aware about the circumstances of countries. It is also duty
of broker that provide the daily report.
