Trading and trading in currency market
The buying and selling of different currencies US dollars or other currencies among themselves what is known as dual currency against the US dollar or any currency against other currencies in value. Trading in currencies is a win from trade on the stock market.
The large multi-currency changes, which helps to do some business operations within one day. It is known that the declines great influence on the financial markets, which could lead to the collapse of stock or bonds. The fall in the forex market the US dollar (for example) means that the rise of the price of the second currency and there is no breakdown such as stock or bond markets.
Forex Market combines four regional markets: Australian, Asian, European and American. And continue trading operations in which all the work days and is closed on Saturday and Sunday market, and the market operates around the clock 24 hours a day. It notes relative calm of 20:00 until 01:00 GMT, due to close the New York Stock Exchange at eight in the evening and the start of the Tokyo Stock Exchange to work in one morning. With the entry of technology and the Internet has become possible to use the opening of accounts and trading in international markets with companies and banks did not go to it even in all countries of the world, including London and Hon Kong and the UAE, and Dubai.
Of the most important advantages of trading in the Forex market as well as rapid variability is trading on margin, or what is known Margin trade. This trade deal with so-called (trade margin) ie you book a small amount from your account ($ 1,000) for the purchase of (100,000) dollars and called the unit purchase (Lott) and win or lose by currency or item movement or metal that you have purchased or sold it and this kind of trading (though it seems simple) is one of the most profitable types of trading where you can earn a large profit within a few seconds as a result of economic news or download and raise interest rate or natural or other causes of economic and other disaster.
One of the important characteristics of the currency market is the property balance Although this seems strange. Everyone knows that the sudden decline of basic property of the financial market is. But the forex market differs from the stock market in that it does not fall. When you lose stock value this be a collapse. If, for example, the dollar collapsed, it means only that another currency has become stronger – an example of the Japanese yen, which has become in a few months of 1998, almost the strongest quarter for the dollar. This has been the falling dollar for some days arrived at that period of tens of per cent. However, the collapse of the market did not happen and transactions continued as usual, in this confined to the stability of the currency market and the associated work. This is because the currency is considered a full merchandise liquidity can be bought or sold at all times.