Forex market is a complex mechanism based on a number of different factors that may affect the success or failure of a particular trading. Will highlight in this article some of the factors that may affect the currency exchange rates daily. If you are new to Forex, you should not do any additional step before the understanding of these basic things about forex trading. If you exercise and trading for some time, perhaps you should remind yourself in the market effects, which affect directly or indirectly on the currency exchange rates, in case I missed the one.
Differences in market
Is a lot of these deaths as the Forex market traders smelted in which all major international developments, because of the absence of any other market responds to these developments is the largest and fastest of the Forex market. In addition, Forex offers a number of differences from other markets, such as the stock market and commodities. For example, the Forex market is held in the central area you view the currency exchange rates daily, Instead, all transactions occur through either the offices, telephone or electronic networks or the banking market.
Sector speculation
You will discover that there are two main reasons produce huge returns in Forex day up to about $ 3 billion a day. Industry speculation is responsible for about 95% of transactions in Forex, which is for profit only. This component, which includes investment banks and large banks, companies and individuals, a detection rate using artificial currency exchange rates for the production of daily profit from price movements.
As a result, you may be amazed when you discover that the majority of Forex trading is speculative in nature only. In fact, the needs of convert currencies in the countries and the business, producing only a small percentage of the total activity of the market and its impact on exchange rates.
Foreign sector
Foreign sector is responsible for the remaining 5% of Forex transactions, and the result is a global business to sell and purchase materials and products abroad, as well as the needs of the currency converter. This section of traders: import and export companies, governments and other investors who need to exchange transactions.
Performance of the work of these organizations directly affected by volatile movement of domestic currencies, foreign currencies, or works that are used daily currency exchange rates.
Current economic events
Economic factors include economic conditions and policy making. For example, it is possible to influence a government directly in the interest rate offered by the central bank through the provision of new financial policies. May be the key impacts of these things on their currencies, as investors baptized to follow the high yielding currencies. If the announcement of such a command, you can monitor the effects on the currency of the relationship through follow-up fundamental analysis of forex.
Political influences
If what happened there is political instability or revolution in a country, it will have a significant negative impact on the economy of that country and its currency, eg, the revolutions that occur in the Middle East, particularly the revolution of January 25 in Egypt. The result, over the developments of the aversion to risk, and you'll notice is certainly affected by the devaluation of the currency against other currencies through the study of currency exchange rates daily.
Differences in market
Is a lot of these deaths as the Forex market traders smelted in which all major international developments, because of the absence of any other market responds to these developments is the largest and fastest of the Forex market. In addition, Forex offers a number of differences from other markets, such as the stock market and commodities. For example, the Forex market is held in the central area you view the currency exchange rates daily, Instead, all transactions occur through either the offices, telephone or electronic networks or the banking market.
Sector speculation
You will discover that there are two main reasons produce huge returns in Forex day up to about $ 3 billion a day. Industry speculation is responsible for about 95% of transactions in Forex, which is for profit only. This component, which includes investment banks and large banks, companies and individuals, a detection rate using artificial currency exchange rates for the production of daily profit from price movements.
As a result, you may be amazed when you discover that the majority of Forex trading is speculative in nature only. In fact, the needs of convert currencies in the countries and the business, producing only a small percentage of the total activity of the market and its impact on exchange rates.
Foreign sector
Foreign sector is responsible for the remaining 5% of Forex transactions, and the result is a global business to sell and purchase materials and products abroad, as well as the needs of the currency converter. This section of traders: import and export companies, governments and other investors who need to exchange transactions.
Performance of the work of these organizations directly affected by volatile movement of domestic currencies, foreign currencies, or works that are used daily currency exchange rates.
Current economic events
Economic factors include economic conditions and policy making. For example, it is possible to influence a government directly in the interest rate offered by the central bank through the provision of new financial policies. May be the key impacts of these things on their currencies, as investors baptized to follow the high yielding currencies. If the announcement of such a command, you can monitor the effects on the currency of the relationship through follow-up fundamental analysis of forex.
Political influences
If what happened there is political instability or revolution in a country, it will have a significant negative impact on the economy of that country and its currency, eg, the revolutions that occur in the Middle East, particularly the revolution of January 25 in Egypt. The result, over the developments of the aversion to risk, and you'll notice is certainly affected by the devaluation of the currency against other currencies through the study of currency exchange rates daily.
No comments:
Post a Comment