Currency and system couples demag

لمشاهدة الفيديو 

Exchange process occurs in any market, whether financial or non-financial market, which is about to swap a good or service for a fixed amount of money. For example, in the stock market when you make a purchase 1000 shares of Ford Motor Company at a price of one dollar per share, it will pay $ 1000 for a thousand shares. In the currency market, we buy the currency and pay in any other currency other hand, we are buying a currency against another currency.

Based on this, the trading in the currency market to be couples system. For example, if you decide to buy a 1000 Euros will pay another currency for the euro, it was the currency is the US dollar. In this case, we have conducted the process of buying the EUR / USD ( EUR / USD)

There are eight currencies are traded mainly in the forex They are divided into major and minor currencies currencies as follows:● major currencies (Major Currencies):The US dollar is symbolized by the USDEuropean euro symbolizes him EURBritish Pound Sterling symbolizes his GBPJapanese Yen JPY symbolizes hisSwiss Franc CHF symbolizes his● secondary currencies (Minor Currencies):The Canadian dollar is symbolized by the CADAustralian dollar AUD symbolizes hisNew Zealand Dollar symbolizes his NZD

Because trading in the currency market always include the process of buying the currency and selling another, is up to what is known as pairs trading system (Pairs), as the following examples:

(EUR / USD - GBP / USD - EUR / CHF - AUD / JPY)

The currency pair is divided into two parts:

The first currency: called currency basis.

Second Currency: called the counter currency.

And each pair exchange rate reflects what is paid from the second currency (currency interview) to buy one unit of the first currency (currency basis).

Example:

Note: to buy 1 euro, you should pay $ 1.3900

The currency pairs are divided into:

● key pairs (Majors):

It pairs consisting of the US dollar with another currency of major currencies, and these pairs are:

(EUR / USD - GBP / USD - USD / JPY - USD / CHF)

● secondary pairs (Minors):

 It pairs consisting of the US dollar with another currency of secondary currencies Examples include:

(USD / CAD - AUD / USD - NZD / USD)

● hyper pairs (Crosses):

It pairs the US dollar is not a party to it and its exchange rate is a product of the price of a couple of majors or secondary Examples include:

(EUR / JPY - GBP / CHF - AUD / CAD)

Example:

Exchange rate pair (EUR / JPY), is a product of the exchange rate pair (EUR / USD) and a pair (USD / JPY). 

Lesson Summary:

Trading currencies are couples buy any other currency system and selling at the same time.

Major currencies are (USD, EUR, JPY, GBP, CHF)

Currency secondary most famous (AUD, CAD, NZD)

Currency pair is divided into currency basis and the corresponding two-fold currency exchange rate and the price of the pair is to be paid from the counter currency to get a unit of the base currency.

Exchange

See also

exchange

Origins and evolution of the currency market only

Origins and evolution of the currency market

Introduction in the currency market

Standard gold (Gold Standard) and cover the monetary gold 

(the period from 1876 to 1933)

Currency is a broker of exchange used by people to buy their needs, and when they arise was initially in the form of pieces of metal (gold or silver), and then evolved over time to become Banknotes reflect a certain amount of metal (so equal currency certain value of gold), and knew the system the gold standard.

In the beginning, the individuals can replace paper currency with gold at any time they choose, to that central banks have abolished the possibility of converting the money into gold before the First World War, and without the possibility of conversion there is no longer a need for a golden cash cover for each paper currency, central banks took in printing money without the presence of an equivalent of gold.

As a corollary there was an increase in the quantity supplied of money, which led to a major inflation and rise in prices of goods and services; and began States that have signed into the trap of inflation, imports large quantities of gold to offset the money supply with the equivalent of gold, but the World War that stopped ways Trade between countries and thus stopped the import of gold operations, and the deterioration of the global economy between the two world wars and the world began to seek a quick resolve to save the global economy.Bretton Woods (Bretton Woods Agreement) - (from 1944 to 1970)

In 1944, after the economic downturn caused by the two world wars, a conference was held in the "Bretton Woods" state "New Hampshire" in the United States in order to put an end to the deterioration in the global economy, and because the United States was less superpowers affected by World War has been agreed Install currency exchange rates against the US dollar, and it can be installed on the dollar against gold, the equivalent of $ 35 per ounce of gold.

It was not allowed to change currency to be worth more than 1% of the fixed value, and if the increased rise or fall interfere with the state (represented by the central bank) to return to the original value.

The collapse of the Bretton Woods agreement and floating exchange rates (1971)

In 1970, the US President "Johnson" funded the Vietnam War, which led to the US current account deficit and led to economic disaster in the value of the dollar, and in 1971 the president, "Richard Nixon" the newly elected wearer, preventing convertibility of the dollar into gold, and canceled the installation of exchange rate in front of the gold.

And hit all the major countries economically, and began to search for an alternative restore economic stability of the world system, so By the year 1973 has been floating currency exchange rates and allowing the value of the currency that according to supply and demand change.

Became bought and sold currencies commodities, and there was an independent trade based on the advantage of buying and selling of currencies due to changes in prices, and here the back of the currency market, featured investment companies that trade in it in order to make a profit, and appeared brokers retailers who buy the currency in large amounts to do the dividing them to their customers, and entered the small Currency market investors.

Advent of the euro

In the first of January 2002 the euro became the official currency of twelve European countries agreed to replace the previous currencies, to be replaced by the euro, these countries are (Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain).

The euro managed to become a significant weight of a global currency, and is now the second most traded currencies in the currency market after the US dollar.

Lesson Summary:

Currency is a broker of exchange used by people to buy their needs, and was initially in the form of metal parts.

Gold standard system is the use of the gold standard as a value for money.

Central banks have abolished the possibility of converting the money into gold and began printing money without a monetary cap and thus greatly inflated happened.

Countries tried to tackle inflation, import large quantities of gold, but stopped import of the First World War operations.

Economy between the two world wars degradation, states began trying to revive the economy was "Bretton Woods" agreement.

In the "Bretton Woods" agreement was reached on the installation of the US dollar exchange rate against gold and install currency exchange rates against the dollar.

After the Vietnam War, the deterioration of the US economy is the president, "Nixon" and unzip the gold peg to the dollar and thus collapsed Agreement "Bretton Woods".

With the collapse of the Convention "Bretton Woods" has been floating currency exchange rates and exchange rates became determined based on supply and demand, and this is the beginning of the emergence of the currency market.

In early 2002, the euro became the official currency of 12 European countries, to become one of the strongest currently the world's currencies and the second largest volume of trading in the currency market

Advantages of trading in the currency market undiger

Advantages of trading in the currency market

Forex has a lot of advantages that made him the largest financial market in the world and the fastest growing, and day after day, the number of traders is increasing in the currency market to superiority on other markets, and we will review some of the advantages of trading in the currency market:

● huge liquidity:

Forex characterized Bsjulth huge, there are always buyers and sellers at every price, which means the possibility of opening and closing deals at the price you want, unlike the case in the stock where it can remain suspended in the deal because of the lack of liquidity in the stock, which you have purchased, or where it can not be find deals at the price you want to buy a share of it.

● possibility of trading at the right time for you:

Forex works 24 hours a day, and this gives the opportunity for traders all over the world to trade in time for them regardless of whether or not their availability.

● profit in both directions bullish and bearish:

Forex you can take advantage of two-way, if you buy climb expected and predicted landing if you sell, that is, you can take advantage of all market conditions.

● trading using leverage:

 In the currency market you can trade many times your capital using leverage, which is not available in any other market, and you can make big profits from small amounts, but you caution Just help you leverage to make big profits, may also cause huge losses if not used wisely and keenness.

● trading without additional commissions:

There is no extra commissions on trades in the currency market, the mediator does not take on the implementation of the deals but the price difference between the purchase price and the selling price, and the longer the profit margin (Spread) which he won a mediator.

● any point of price controls can not:

Huge liquidity of the currency market makes it impossible for any move the market and price manipulation category as it happens in a weak market liquidity, even senior banks and large investment portfolios can not control prices.

● possibility of trading small amounts:

The minimum to open an account in the currency market in most companies no more than $ 300, which allows for small investors to trade in the market, like adults, need money overflowing.

● possibility to open a free demo account:

Brokerage firms offer the possibility to open a free demo account (Demo Account), from which you can trade in the market with money and fake, to be trained on various market conditions and good learning before you start trading, and the trading price and the actual market situation and the only exception is that the money in the demo account is fake Training only, one of the most important features of the currency market, where you can practice on the market already judged on your performance and the future.

The need for currency market naeed

The need for currency market

Currency is a key element in any investment activity, and this is contributed to making the currency market the largest financial market, where it does not compare to any of the other markets as markets stocks and bonds and others.

Currency exchange does not play a role in investment activities only, but also has an active role in the natural life of individuals, for example, when the need for consumer Saudi drug manufactured in the United States, it is the purchase of this drug in US dollars, that is, it replaces the Saudi Riyal US dollar to be able to buy the drug.

Also, if we found a German tourist visiting the United States, it replaces the euro US dollar can even buy their needs during the trip and also the American import company, which imports goods from Japan Vtstbdl US Dollar Japanese Yen so you can purchase.

And apply the same relationship to the millions of major companies and investment banks that deal with the currency permanently, which is added to the currency market luster and strength of the importance of currency and can not be dispensed or exchange operations.

And so we can see the currency market advantage over anything else from the market can keep this simple comparison in mind, we ask:

Is it better for the investor to invest his money in the US dollar or the Google company ?!

Or is it better to invest his money in oil or in the Canadian dollar, which is one of the largest sources of oil, and the owner of the stable economy ?!

Of course the right choice always is in the best currency interest, firms could go bankrupt or are exposed to financial crises and collapses suddenly and many other problems, and on the other side goods moving violently, for example, oil moved from about $ 150 to $ 40 a barrel within a few months, and so on Unlike currencies which is the maximum daily move in within 1% - 2% at the latest, and thus is more stable and secure markets.

Lesson Summary:

Importance of currencies in all investments in the world, and the need for large currency market.

Investment in the currency is stronger investment activities and most secure.

Companies may be exposed to bankruptcy and financial problems and crumble easily, causing the collapse of stock prices, and goods moving violently, while the currencies move in the range of 1% to 2% per day, and is more stable markets.

Forex Currency Market ferty

Forex Currency Market

Forex is the foreign exchange market, and it is called the term Forex or FX shorten the term Foreign Exchange Market, investors will benefit in the currency Forex market from the change in foreign currency exchange rates, and by one currency for another and buy a currency at a low price and sell swap at a high price.

Currency Market Forex largest financial market in the world, in terms of volume up in the currency market Forex to US $ 5.3 trillion a day, which means that trading volume in the currency market Forex more than three times the volume of trading in the markets and futures contracts in the world stock market, due to the presence of central banks and major investment banks, large financial institutions, as well as senior portfolios and investment funds, which led to the fact that the currency market Forex largest financial markets and the strongest and most stable.

The technological revolution and the emergence of the Internet at the end of the last century has contributed greatly to the spread of Forex currency market, where investors can now all around the world, trading through electronic trading platforms, regardless of geographic location, or the amount of capital to be traded.

Unlike other financial markets, not the currency market Forex geographic headquarters specific or centrally located trading operations take place, Currency Forex market Vicef that is central, where is the quality of the trade exchanges across the networks called the Over the Counter or OTC operates through electronic networks and means of communication Modern-mail like the computer.

Because of the decentralized nature of the Currency Forex market operates 24 hours a day, five days a week, and works Forex currency market on Saturday and Sunday weekly holiday universal.

Lesson Summary:

FX or Forex is a term that means the foreign exchange market.

Forex currency market is the largest financial markets and most liquid.

Daily trading volume in the currency Forex market up to $ 5.3 trillion per day.

Helped the advent of the Internet on the admission of new investors from all over the world to the Forex currency market.

The currency exchange market Forex quality exchanges across networks (OTC)

Forex currency market 24 hours a day, 5 days a week and works close Forex currency market on Saturday and Sunday.