HOW DOES THE FOREX MARKET WORK?
In the forex market, you trade one currency for another. The two currencies being traded are known as a currency pair. Here are some examples:
• USDJPY - buy Japanese yen with US dollars
• JPYUSD - buy US dollars with Japanese yen
• USDCHF - buy Swiss francs with US dollars
• CHFUSD - buy US dollars with Swiss francs
The main currencies
The main currency used in forex is the US dollar; 40% of transactions involve the dollar. Other major currencies include the following:
• Japanese yen
• Swiss francs
• British pounds
• Euros
• Canadian dollars
• Australian dollars
• New Zealand dollars
Although the US dollar still predominates, “cross rate” trading is increasing in Europe. This is where currencies are traded without using the dollar as an intermediary; for example, you can trade euros for British pounds or yen directly.
Types of transaction
There are five main types of forex transaction:
• Spot - 48% of the market
• Swaps - 39%
• Forwards - 7%
• Options - 5%
• Futures - 1%
Making money
Most traders work in spot forex. This is where currencies are exchanged directly. Here's an example:
• You want to trade US dollars and Swiss francs
• The instrument for buying Swiss francs with US dollars is USDCHF
• You buy when the rate is 0.7700 and get 770 Swiss francs for $1,000
• You wait until the Swiss franc goes up
• You sell at a rate of 0.7690
• Your profit is one Swiss franc or $1.32
• You only had to invest $10 because you had 1:100 margin
• You have made a 13.2% profit
In the example above, the price changed by 10 points – a point is 1/10,000th of a currency unit. Prices normally change by between 80 and 150 points per day, so you can make large profits. If the price above had changed by 80 points, you would have made $10.56 for a $10 investment.
However, the exchange rate can also move in the wrong direction, in which case you will lose money. That's why it's important to analyse the market before you buy, and to keep a close eye on your open positions. You can also set stops, which place a sell order automatically when a specific exchange rate is reached. That way, you can lock in your profits and limit your losses.
When you first start forex trading, we recommend that you open a Cent Account with us. With a cent account, you can make trades for as little as two cents each. This is an excellent way to learn the forex market without taking significant risks.
WHO CAN BECOME A FOREX TRADER?
You can!
The international forex market is open to everyone. It doesn't care about your age, education, nationality or where you live. As long as you're willing to work hard and learn, you can be a forex trader. Even if you don't have much capital, you can open a Cent Account and make trades for as little as two cents.
Why become a forex trader?
You become a forex trader to make profits, but it has many other benefits. If you're successful, it can become a full-time occupation, with the following advantages:
• Be your own boss
• You can trade any time and anywhere – no need to go into an office
• Your income potential is unlimited
• It's interesting and as fast-paced as you want it to be
As long as you have an internet connection, you can trade on the forex market!
Why Forex4You?
Forex4you is committed to helping you learn and succeed. If you're starting out, here are some of the things we offer:
• Free forex training, seminars and consultation
• Online tutorials and guides
• Free analysis of your trading performance
• Daily market analysis, recommendations and tips from our forex experts
• The latest Dow Jones news feeds
• No minimum capital requirements
• Place orders as low as two cents with our Cent Accounts
• Euro and dollar accounts
• Free and fast deposits and withdrawals – including with Liberty Reserve and WebMoney
• 24x5 customer support – with offices around the world
• Instant web-based support using LiveChat
Forex4you in Russia
Forex4you has a strong presence and roots in the Russian Federation, and we believe that forex trading is an important part of economic development in Russia. We offer profitable employment to our traders, and a well-established, stable international market in which to work.
Forex trading rewards you for your skills and hard work, and promotes a positive Russian image on the world stage. At Forex4you, we are proud to be part of that success.
In the forex market, you trade one currency for another. The two currencies being traded are known as a currency pair. Here are some examples:
• USDJPY - buy Japanese yen with US dollars
• JPYUSD - buy US dollars with Japanese yen
• USDCHF - buy Swiss francs with US dollars
• CHFUSD - buy US dollars with Swiss francs
The main currencies
The main currency used in forex is the US dollar; 40% of transactions involve the dollar. Other major currencies include the following:
• Japanese yen
• Swiss francs
• British pounds
• Euros
• Canadian dollars
• Australian dollars
• New Zealand dollars
Although the US dollar still predominates, “cross rate” trading is increasing in Europe. This is where currencies are traded without using the dollar as an intermediary; for example, you can trade euros for British pounds or yen directly.
Types of transaction
There are five main types of forex transaction:
• Spot - 48% of the market
• Swaps - 39%
• Forwards - 7%
• Options - 5%
• Futures - 1%
Making money
Most traders work in spot forex. This is where currencies are exchanged directly. Here's an example:
• You want to trade US dollars and Swiss francs
• The instrument for buying Swiss francs with US dollars is USDCHF
• You buy when the rate is 0.7700 and get 770 Swiss francs for $1,000
• You wait until the Swiss franc goes up
• You sell at a rate of 0.7690
• Your profit is one Swiss franc or $1.32
• You only had to invest $10 because you had 1:100 margin
• You have made a 13.2% profit
In the example above, the price changed by 10 points – a point is 1/10,000th of a currency unit. Prices normally change by between 80 and 150 points per day, so you can make large profits. If the price above had changed by 80 points, you would have made $10.56 for a $10 investment.
However, the exchange rate can also move in the wrong direction, in which case you will lose money. That's why it's important to analyse the market before you buy, and to keep a close eye on your open positions. You can also set stops, which place a sell order automatically when a specific exchange rate is reached. That way, you can lock in your profits and limit your losses.
When you first start forex trading, we recommend that you open a Cent Account with us. With a cent account, you can make trades for as little as two cents each. This is an excellent way to learn the forex market without taking significant risks.
WHO CAN BECOME A FOREX TRADER?
You can!
The international forex market is open to everyone. It doesn't care about your age, education, nationality or where you live. As long as you're willing to work hard and learn, you can be a forex trader. Even if you don't have much capital, you can open a Cent Account and make trades for as little as two cents.
Why become a forex trader?
You become a forex trader to make profits, but it has many other benefits. If you're successful, it can become a full-time occupation, with the following advantages:
• Be your own boss
• You can trade any time and anywhere – no need to go into an office
• Your income potential is unlimited
• It's interesting and as fast-paced as you want it to be
As long as you have an internet connection, you can trade on the forex market!
Why Forex4You?
Forex4you is committed to helping you learn and succeed. If you're starting out, here are some of the things we offer:
• Free forex training, seminars and consultation
• Online tutorials and guides
• Free analysis of your trading performance
• Daily market analysis, recommendations and tips from our forex experts
• The latest Dow Jones news feeds
• No minimum capital requirements
• Place orders as low as two cents with our Cent Accounts
• Euro and dollar accounts
• Free and fast deposits and withdrawals – including with Liberty Reserve and WebMoney
• 24x5 customer support – with offices around the world
• Instant web-based support using LiveChat
Forex4you in Russia
Forex4you has a strong presence and roots in the Russian Federation, and we believe that forex trading is an important part of economic development in Russia. We offer profitable employment to our traders, and a well-established, stable international market in which to work.
Forex trading rewards you for your skills and hard work, and promotes a positive Russian image on the world stage. At Forex4you, we are proud to be part of that success.
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