Forex is an acronym that stands for Foreign Exchange Market, and therefore indicates the market trading of currencies. It is today the most active market and rich ever, with an estimated value of 4000 billion dollars a day. To operate in this market are not only the traditional players in the market of investment, as a broker, investment funds, investment banks … but also millions of citizens who have discovered through the Internet can make speculative investments in this market.
by epSOS .de
The market of trade between currencies has encouraged many people to try to earn some money with online trading platforms, but make investments with Forex can be done keeping in mind a few basics: as we all know the difference in value of a currency it depends on several factors, both internal ones which for convenience we will define the country that uses it, is external, that is, relative to markets. Internal factors are therefore the decisions of a government, a central bank, a major financial scandal that saw the collapse of a nation economic giants; external ones instead are mainly investors’ reactions to any event or information affecting the currency and the country that uses it.
We say that to understand how to invest with Forex you need to use more complex application of the supply and demand mechanism: in this case the good investor must guess is what will happen to the offer (eg the central bank will cut interest rates or them increase? the country in danger of default and therefore the currency becomes waste paper?) is the question, for example “as investors react to the news of a new budget package?”. If my intuition makes me lean toward A rise in the value of a currency relative to another then I’ll make an investment on the upside, but if I think a currency will lose value over another, will invest downward: in each case investing I always find with Forex trading with currency pairs and their relationship.