What about Foreign Currency Exchange Info…!
Generalities about Foreign Currency Exchange Info …!
Foreign Exchange we know as FOREX, today, find his origins from the world wide currency problems that are arise in the year before World War II. After the World War II, the first Foreign Exchange regulation appeared that by the international treaty, know as "Bretton Woods Agreement"
The "Bretton Woods Agreement" has made that the most Foreign Currencies has adapted a fixed exchange rate measures to the USD, which used to be measured to gold before. All above was done to stabilize all Foreign Currencies and to stimulate trade. In the coming 25 year it becomes clear that this system has doing more to impede the international trade than to promote trade!
The "Bretton Woods Agreement" was abandoned in 1971, and "floating" currency exchange rates were allowed so they can find their own level by varying in response of the market forces of the moment.
FOREX is not suddenly become popular; FOREX is become popular by time and technology.
FOREX some 10/15 ago, before the globalization was only for the rich man, now with the globalization FOREX is accessible for all!
What also has help FOREX to become so successful is the growing unemployment all over the world, so many people are seeking to alternative way to earn money for daily living and FOREX presents a very good one.
FOREX attract all kind of individuals from students, house-wives and working woman or man and also retired people are interested, all are trying to get a piece of the cake that is presented by FOREX.
We can understand that for all beginners, the system and facts of Foreign Exchange leverage come over as surrealistic, lets say near like bluff, but nevertheless all what you have read is true and is the real way that Foreign Exchange works on today.
If you lookup all "Foreign Currency Exchange Info" on the Internet we see there are many options accessible for you that in terms of Foreign Currencies and Currencies Pairs, so our first advice is to be extremely cautious before you act
To give our future traders a quick idea about Foreign Exchange, here after we will give answer on following questions:
- Who and what is FOREX…!
- Why you must use FOREX SERVICES…!
- Some basic rules for FOREX Beginners…!
- Something more about FOREX "Floating Exchange Rates"…!
Who and what is FOREX…!
FOREX is an over-the-counter market where currency buyers and currency sellers realize Foreign Currency Exchange transactions.
FOREX is first of all useful for the trade and transactions between the different counties because with all the various currency it makes it more easier to manage.
Secondly FOREX create further an investment opportunity for almost all investors who accept speculation what include risks…! For those investors who accept the risks and speculation, they should make careful study on economic and financial situation of a country because these factors can influence the direction of its local currency. Thanks to this knowledge the investor can decide to buy or to sell!
What is unique on the FOREX market is that the daily trading volume is high, that against the exchange units (various currencies of the world) who are small!
Today the FOREX market is estimated on more then $4 trillion, and this market is calling also Exchange Market.
Why you must use FOREX SERVICES…!
If you want to act personally and direct in the Currency Market, you must be able to evaluate the trends of different Currency Market that in proper manner.
That means you must analyze the market trends which are taking your time. Depending on person to person, it can take you from minimum of 6 month to maximum 12 months to perform the estimate…!
On this way you will develop a concept of which some Foreign Currency has no fluctuation and which one a little bit fluctuation.
Now with this knowledge, you must produce your own marketplace pattern of various currencies. If you are not sure of your personal outcome you can also get some assist of some FE experts…but all will cost your time and money.
In or opinion, it is better to deal directly with FOREX which master this matter electronically as same as the best FE expert, and who is able to give you all reliable Foreign Exchange information based on what you need. Later, you can use your time to become acquainted with their online software…!
As you work directly with FOREX, you are not necessary to use 6/12 months but 1 month to become a real Foreign Currency Trader…!
Some basic rules for FOREX Beginners…!
Once you are using around 1 month your FOREX free practice account, we can be sure that you are able to mastered Foreign Currency, what means buying and selling whatever currencies after you have decided already with some own knowledge or by coping some fellow trader with years experience…!
When you start now to use FOREX with real money it is always good to begin small, you put the minimum depending of the broker that you work with, and what is maybe a few hundred dollars. And keep in mind that you should not be rushed, the Foreign Currency trading is there around the clock and you should not despair because tomorrow they will still be there!
As soon as you have mastered your FOREX system with little real money, you can move to a higher amount depending to your own financial capacities, that because you must keep in mind the risk to lose all is always there!
FOREX trading is, in fact the trade of one Foreign Currency to an additional Foreign Currency trade that arise through a "Currency Pair" in which the first currency is used to buy the second currency! ,
A "Trading Pair" consist out of the first currency or "base" FOREX and the second currency the "quote " FOREX.
A trader will use the "base" also named the foundation currency to purchase the "quote" currency, with the hope that the value of the "base" or foundation currency will fall, that while the worth of the "quote" currency rises.
For example, in Europe the FOREX in circulation is called the Euro (EUR) and in the United States the FOREX in circulation is called the US Dollar (USD).
Foreign Exchange Trade example is to buying Euro (EUR) that while you promoting US Dollar (USD), this action is named as Heading on the EUR/USD
Something more about FOREX "Floating Exchange Rates"…!
There are laws and rules that determined the Foreign Exchange Rates which affect international companies much and they name it "Floating Exchange Rates".
As the demand of a currency type is low, his value will decreases as like any other product of services.
Therefore a devalued currency cause that imported goods are more expensive for the people who own this currency.
It also means if it use to require 100$, now it will now require 150$!
Because of that the imported goods are more expensive, people will try to buy domestic products or services instead, which will set a trend in creating more work places locally and become the global stimulants for the country's economy.
Whatever the contrarily is also true, when local currencies become more valuable, than imported items become cheaper, what will trend in decreasing work places locally and will slow down the countries economy.
In conclusion we can say that no currency is in fact fixed or floating. In a fixed regime, the market pressures influence some changes in the exchange rate.
When a local currency reflects its true value against the pegged currency, we can expect that a "black market" my develop him self because the "black market" reflect more the actual supply and demand.
At that moment the involved central bank will often be forced to revalue or devalue the official rate so that the official rate become in line with the "black market" rate and on this way halting the activities of the "black market".
In a floating regime, the central bank has also for task to ensure the stability and to avoid inflation therefore we can expect that they will interfere if necessary, however it is know that in a floating regime the interfering of the central bank will be less!