Tuesday, January 31, 2017

Understanding Forex

Understanding Forex
What is Forex?

Forex consists of two words and that Foreign Exchange, Foreign Exchange means and means foreign exchange. So Forex is the foreign currency exchange, or the exchange of one currency to another, the goal is to initially foreign payment.

In contrast to the traditional markets. Forex market here being traded is currency, then the market (where the merchants / traders buying and selling) is called the forex market. Who are the perpetrators of the forex market? very diverse: can bank (main), large enterprises, state, institutions, speculators, etc.

Due to market conditions and prices in the forex market moves very dynamic, can change at any time quickly, in response to the events it economics, politics, war, disaster, etc. Especially for countries with developed economies and strong, a little no sensitive information, then the price of the currency can move up and down.

In the process, the Forex market has a function that is very influential on the culprit. Here are three functions of the Forex market is as follows:

  1. The first function is to facilitate the process of exchange.
  2. The second function is to conduct hedging.
  3. The third function is to Arbitration

So the goal that by the Forex traders seen as an opportunity and an opportunity to make a trade. Simply put, the purpose of trading forex is to achieve a profit from rising and falling exchange rates.

In the forex market is certainly there were several parties involved and influence in it or the term as a player in the Forex market. Players forex market can be divided into 6 as follows:

  1. Bank
  2. Business needs
  3. Central Bank
  4. Investment Management Companies
  5. Hedge funds
  6. Broker / Broker

Forex like a double-edged sword. With forex can make us rich quick, but the opposite with a heartbeat can also mengikikis depleted our capital. No matter whether you consider forex as an investment or as a regular trade, which obviously forex risk factors are high. So understand completely the risks in forex and do not let one step.