What exactly is Forex!

What exactly is Forex!
Stock exchange (UK: Foreign exchange market or forex abbreviated) or abbreviated stock exchange is a type of trade or that trade transaction currency of a country against another country's currency (the currency pair / pair) that involve major money markets in the world for 24 hours continuously.

Foreign exchange market movements spun from New Zealand and Australian markets which took place at 5:00 to 14:00 pm, continues into the Asian markets of Japan, Singapore, and Hong Kong which took place at 7:00 to 16:00 pm, to European markets of Germany and the UK which took place at 13.00 -22.00 pm, until to the U.S. market which took place at 20:30 to 10:30 pm. In a historic development, the central bank of countries with foreign currency reserves that even the biggest can be defeated by the forces of free foreign exchange market.

According to a survey BIS (Bank for International Settlements - the world's central banks), conducted in late 2004, foreign exchange market transaction value reached more than USD $ 1.4 trillion per day. Thus, the prospects for investment in foreign exchange trading is very good as well as at high risk.

Given the level of liquidity and accelerating the movement of these high prices, foreign exchange has also become the most popular alternative because of the ROI (return on investment or the return value of the investments we have been planting) and the profit to be gained can exceed the average trading in general (usually Average returns ranged more than 5% - 10% per month, can even reach more than 100% per month for professional traders). Due to rapid movement, the foreign exchange risk is also higher if you do not have enough knowledge and good financial management arrangements.




FOREX market is a place where a currency is exchanged for other currencies. This market was first formed in the 70s when there was a transition in the international trading system that is a change from the fixed exchange rate to a floating exchange rate. Today, FOREX can be said to have become the largest financial market in the world.

What is traded on the Foreign Exchange Market / Forex?
The answer, of course money. Currencies are traded in pairs through a broker or dealer, such as the Euro vs. U.S. Dollar (EUR / USD) or Pound vs. Yen (GBP / JPY).
Unlike stock markets, such as New York Stock Exchange or the Jakarta Stock Exchange, the foreign exchange market has no trade center offices. Located in NY Wallstreet NYSE, JSE, while located in Jakarta. The foreign exchange market can be considered as a market that is "Interbank" or OTC "Over The Counter" for the time trade that continue to follow the trade of each country and can be assumed that the foreign exchange market is open for 24 hours.


There is a lot traded currencies in forex trading like the one below:

EUR Euro CHF Swiss Franc
USD U.S. Dollar AUD Australian Dollar
GBP British Pound CAD Canadian Dollar
JPY Japanese Yen NZD New Zealand

All of these currencies will be traded in pairs like EUR / USD, GBP / JPY, and so forth. if you buy EUR / USD means you have to buy Euros against the USD and when you sell EUR / USD means that you have sold the Euro against the USD. So, how do we generate money from FOREX? The answer is simple. You simply buy the currency at a low price and sell at higher prices, and vice versa. The problem is we do not know when the right time to sell and buy. Therefore, traders usually analyze the market before entering into transactions.

Market participants
Who are the participant in this Forex Market?
- Government
- Companies
- Financial Institutions
- Banks
- The Broker
- Business Performer
- Society (Retail Customers)

Example of a successful trader world:
- George Soros (one of the richest 100 people in the world),
- Larry William (With capitalize $ 10,000 within 1 year it managed to produce
total profit of $ 1 million (around Rp 10 M))

FOREX traders usually use 2 types of analysis:

1. Fundamental analysis, by observing the market through economic news, social, and political impact on the currency pair that you traded, you can follow her schedule in www.forexnews.com
www.forexfactory.com
2. Technical analysis, by looking at charts to determine market price movements

How do I get a profit in trading?
His way is by analyzing a currency pair which will naek or down, and take its difference from the trade.
If you believe the currency will strengthen (naek) immediately do buy position, then wait for prices naek, do closed (sell) when the currency exceeds the purchase price you'd
If you believe the currency will weaken (go down) do sell position, wait for prices to fall, do closed (buy) when the currency below the price you'd

As the example is this:
Opening of Euro 1.1750 / 1.1753, you analyze that the euro will be a position naek 1.1770/1.1767, then the open buy position when the price is (then you buy at the position of 1.1753), and when the position changed to 1.1770/1.1773, do the closed position / sell currency these (at position 1.1770)
Consider the example above, the offer price and bid price, notice the difference in price and sellnya buy, and when you use the offer price and when to use the bid price.

Why Rupiah not become a major player in the International Market Forex?
Because dollars are not a developed country currencies and the value of its currency relatively highly unstable, think if you play with dollars at the margin trading system, whether your account is able to withstand fluctuations convinced her that high enough? Rupiah including highly volatile, and the basic fundamentals we know right? In terms of technicalnya, spread is also too big! Cardiovascular risk should be insured! It is not recommended for beginners!

Financial Solutions As forex trading Forex / Forex Margin Trading or foreign currency trading is now very easy to do from home or cafe. With a capital computer connected to the internet, we are able to trade foreign currencies from anywhere, home, office, cafe, etc.. In contrast with the Commission House or companies Futures Exchange, where we have to deposit some money to open accounts in the company. The amount of costs that must be remitted to open an account at a company that organizes Valas / Forex Online Trading Margin varied, ranging from U.S. $ 500 (Rp 5,000,000, with the assumption the dollar exchange rate to dollars 10,000) to U.S. $ 10,000 (Rp 100 million with dollar exchange rate assumption to dollars USD. 10,000). Really big paid-in capital to start business Valas / Forex Margin Trading. But, now if you already have a major capital Internet access, whether at home or in the cafe, not so important issues can access the internet. Substantial capital constraints that could be overcome by joining the company Valas / Forex Online Trading Margin which gives relief in a matter of opening accounts.