Forex is called the International Global Market, in which a different currency acts as a product. A distinctive feature of this market is that the formation of all prices occurs on the basis of agreements between all participants.
Prices depend solely on the offer and demand for a particular currency. Therefore, this market can be compared with exchange points in which the currency is sold or bought for another currency.
How this process occurs?
Suppose the price begins to grow for the dollar. You can make good money on this increase, for this it is enough to purchase this currency for rubles or euros. After the purchase, you should wait a bit to a certain point when the price of the dollar grows, then this currency can be resold at a more favorable price. This example clearly shows that all other Forex transactions are carried out in a similar way, the volume of purchased and sold amounts are perhaps the only difference.
In order for the foreign exchange market to be fully earned, the beginner trader must first learn to analyze the market. To do this, you should know the reaction of various currencies to certain events in the field of economics. It is necessary to carefully monitor the statements of the leaders of the countries, determine the release of statistical data that reflect the economic condition of those countries whose currency is trading on Forex. In addition, one should also take into account economic news, statements by the heads of the Central Banks.
Experienced traders, as a rule, make forecasts of currency prices not only for the coming hours, but also in the next couple of days. Such short -term forecasts are used to conclude the most profitable transactions. The trader does not need to know about what the cost of the currency is by the end of the year or even at the end of the month. The fact is, the forecast even at the end of the month is much harder than for a couple of days. Although some long -term forecasts, with a reasonable approach to business, will also help to get a good profit.
To make a profit, you must learn to choose the most suitable issues of the exit and entry of the transaction. A novice trader must understand when it is better to enter or get out of the transaction. The trader, for example, can make a very accurate and correct forecast for the near future by growth in the course. However, you need to buy currency only at the peak itself, before starting a new trend to decrease. It is very important not to miss the moment of sale and purchase of currency.