subject: The Forex Market Basics [print this page] The Forex Market Basics The Forex Market Basics
Is the exchange of foreign currencies with our currency The exchange rates vary all the time between the different currency (currency is currency called in the language of traders)
There are 5 major types on which it is possible to make money with forex
In these examples, EUR is the designation for the European currency Euro.
EUR / USD (USD = United states dollars = U.S. dollars)
EUR / GBP (GBP = Great Britain Pound = pound)
EUR / JPY (JPY = Japan Yen = Yen)
EUR / CAD (CAD = Canadian dollar = Canadian dollars)
EUR / AUD (AUD = Australian dollars Australian dollars =)
These 5 currency fluctuate and are constantly in flux.
This means that if at the same time EUR / USD = 1 euro to 1.27912 U.S. dollars, it will be worth for example 30 seconds later 1.28102 dollars.
You can see the fluctuation of currencies as real XE.com How to make money with currency fluctuations is evident. Consider an example with the current euro / dollar
Suppose that today the price of the euro at 1.28 dollar (1 = 1.28 U.S. dollars), you buy Euros for 1000 U.S. dollars, so you have 1280 dollars.
2 days, the price goes to 1 = 1.25 $ For 1000 you need $ 1250, $ 1280 off you that you changed two days ago. So you redeem for $ 1280 euros, you 1024.
You've gained 24 , it does not seem much but it is really huge. 24 in 1000 it made 2.4% in 2 days ... A booklet offers 2.75% in 1 year!
The value of the currency fluctuate all the time, upwards and downwards of 5 main courses ..
Plus you do not have to go back to your currency, you can buy with your dollar euro yen to buy with your dollars, Australian dollars to buy yen and finally with your change back in euros! and many other combinations.
The forex market is less risky than the stock market, as indeed with forex you can lose a little bit, but you can not lose everything! because a country is not a company! it does not close ... The U.S. will always pay in dollars and the Chinese position in Yen.
You have everything to gain by trying the forex. Or very little to lose. $ 1 will always be a dollar and a euro still one euro. While that action may be will one day have a memory because of bankruptcy or bankruptcy!
Travelling in Australia? the United States? Japan? When you return to France, instead of exchanging money foolishly against euro and lose 10% of exchange fees! Keep money!Who knows he may one day be worth much more?
See the American who came to France in 2002 and takes home 500 of 2002: The 500 will cost him 400dollars. because the price was low in 2002. Suppose he wants to now change its 500 in dollars, it would be about 650dollars, a gain of $ 250, 60% in 3 years, not bad?
Two types of investment in Forex are possible:
Invest Conditions:
Investment Physics is a very simple way to invest in forex, Physics means you keep paper money, real home.
Physical investment is for investment in the long term.
Ideal if you return from a trip with money, I strongly advise you to keep the money you do not spend it in an envelope in a drawer! And watch from time to time on the course XE.com!
For example if you bring the equivalent of 500 Japanese yen of your trip, and that in a year or two during the yen's rise, with any luck your yen worth 750 instead of 500 ! 250 to win ... and then at its worst if not increase or decrease a little bit ... you will only return trip to spend your money!
If you do not travel and want to invest in the forex! do not panic! The Post offers a service to check travel: You can exchange your euro against the dollar with very little free (public service). Nothing prevents you to go buy for 500 or 1000dollars ... you'll see how the course has changed a few years later.
Invest via banks:
This type of investment is best suited for the budding trader who wants to make a little money on the forex and to earn a little money. There are many trading systems in English on the Internet, the system is much more widespread and known to the U.S. than in France.
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