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Understanding the FOREX Marketing

The Psychology of traded:

Forex trading is the simultaneous purchase of one currency and the sale of another or the purchase and sale of money from one country against money from another country. Currencies are traded through a bank, broker or broker and are traded in pairs; for example the euro and the US dollar (EUR / USD) or the US dollar and the Japanese yen (USD / JPY). Forex trading can be confusing because you are not buying anything physical. When buying a currency, think of it as if you were buying a stock in a particular country.

For example, when you buy the U.S. dollar, you are actually buying a share of the U.S. economy because the price of money directly reflects what the market thinks of the current and future health of the U.S. economy. Thus, the exchange rate of a given currency against other currencies reflects the general situation of the economy of this country, compared to the economies of other countries.

Currency prices are determined by a number of factors: political stability, inflation and interest rates are all taken into account in the price of any currency, but the most important ones in determining the price of ‘a currency of a country are the economic and political conditions of the issuing country. In some cases, governments can try to control the price of their currency by buying massively to increase the price or by flooding the brand and in order to lower the price.

However, it is impossible for a single force to control the market for a long time due to the gigantic volume of the Forex market, market forces will prevail in the long run, making money the most open and the most investment opportunities. fair trade available. Unlike other financial markets, the FX spot market has no physical location or central exchange. (With the exception of a small part of the global daily volume which is traded on the Chicago Mercantile Exchange). The currency market is considered to be an over-the-counter (OTC) or “ interbank ” market, because the entire market is managed by a network of banks and brokers, continuously over a 24-hour period. (OTC implies that you have to trade with a specific bank or broker when you buy and sell a currency)

The US dollar is the most traded currency in the world, accounting for about 90% of all transactions.

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