WHAT IS FOREX ?

FOREX (Foreign Exchange) or that more was known by Foreign Currency (the Foreign Currency Stock Exchange) was a trade kind/the transaction that traded in currency of a country against the country's other currency that involved the main money markets in the world for 24 hours continuously.

The movement of the Forex market proceeded beginning with the market of New Zealand & Australia that took place struck 05.00-14.00 WIB, went straight to the Asian market that is Japan, Singapore & Hong Kong that took place struck 07.0016.00 WIB, to the European market that is Germany & England that took place struck 13.00-22.00 WIB, arrived at the American market that took place struck 20.30-10.30 WIB. in the development of his history, the central bank belonging to countries with the reserve big foreign currency although could be overcome by the strength of the market forex that free.

According to the survey of the BUS (the Bank International for Settlement the world central bank), that was carried at the end of 2004 out, thought the market transaction forex reached more than USD$1,4 Trillion per his day.Therefore, the investment prospect in the trade forex was very good.

Considering the level of the liquidity and the acceleration of the movement of the expensive price this, FOREX also became alternative that most popular because of ROI (Return ounce Investment or the return the value of investment that was buried by us) as well as the profit that will be gotten could exceed in general the trade generally (usually in general return revolving more than 5% - 10% per his month, in fact could reach more than 100% per his month to professional trader).

Resulting from the fast movement this, then FOREX also involved a high risk if you did not have knowledge that was enough as well as the management regulation of finance well.


Then, what was currency that was traded in?

All currency the public world and had the power sold high.
The example: USDollar, Yen, Euro, Franc, sterling pound.
(EUR/USD, GBP/USD, USD/JPY, USD/CHF).Etc

Is FOREX "Two Ways Opportunities?" Yes! The transaction could be in FOREX carried out by means of 2 directions in taking his profit. BUY (offer) beforehand, then was closed with take the SELL profit (bid) or was the reverse did SELL beforehand, then was closed with take the BUY profit.

What the difference between traditional Forex and modern Forex?

For the market forex (foreign currency) traditional leverage that was worn was 1:1, or significant to trading with a value of $5000 you needed money $5000 also, or was significant in the traditional forex market needed big capital, and generally the trade traditional forex was done in an offline manner (usually in money changer or in the bank).

Whereas the market modern forex in his trade used leverage (the power pry into/contract size) yg generally 100:1, his trade then made use of the online media. So in modern forex you must only spend capital $50 to be able to trading in the number $5000.

Posted by Arief Riyanto, Thursday, August 10, 2006 10:07 PM

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