Monday, October 3, 2011

How to Invest in Forex

It's no secret that the operations of the global financial markets are considered one of the most profitable legal businesses. The explosion in global cash flow was influenced by the thoughts and lives of people around the world. Changes related to economic boom in the 80s. It was a decade of growth in personal monetary conditions. According to information published in the magazine "Forbes", 24% of all the owners of billions of dollars, amassed their wealth is in the financial markets.
For example, George Soros, probably the best known today traders on the FOREX, according to the annual statement of income only in Forex spot in 1996, earned more than McDonalds corporation throughout the year. Soros began his activities in the 1969 establishment of the group "Quantum-Fond" in Curacao (an island in the archipelago of the Lesser Antilles in the West Indies). Who bought the stock at the base of participation for $ 1,000, he was able to sell the stake in 1993 for $ 1.3 million.
The financial industry has become the biggest growth industry of the world, as it always brings more profit than the work as such, the organization of production and new product development. Communication and computer are the reason that money at a furious pace sweep over the globe. Derivative financial instruments create conditions that can speculate on the highest financial level, not eating at the same time many of his own money.
The international currency market Forex is a special place in global financial markets. Due to its scale, high liquidity and profitability, the market is one of the most attractive markets for investors. Allocation of funds in the currency market FOREX - is one of the most promising and profitable areas of modern business and investment in this market can yield big dividends.
What are the main advantages of FOREX to other markets, through which the foreign exchange market is attracting more and more hundreds of thousands of investors around the world? Here are some of them:

    
Market accessibility. To get started in the Forex market is enough to open trade and an escrow account in any bank or brokerage firm, predostavalyayuschih services in the financial sector and to deposit the money - guaranteed margin needed to obtain leverage.

    
The possibility of buying and selling currencies in the absence of a full contract amount. For transactions to make only an initial margin (security deposit), then it is possible to conclude contracts which may have a 20 -100 times greater than the amount originally invested funds.

    
Open positions in any direction for any currency or cross-rate. Enough to hold a merchant account U.S. dollars, made a pledge to have the opportunity to open positions in any direction, ie buy and sell any currency, and cross-currency exchange rates, which quotes your broker (the broker can be both Russian and foreign bank or brokerage company).

    
Clock work markets. This is the only market operating 24 hours a day. Ability to work in the financial markets in Asia, America and Europe became available because of their association in one global communication network. Clock access to the forex market allows you to open and close positions in the most opportune time and at the best price.

    
High liquidity. Thanks to the huge volume of daily transactions committed, the FOREX market is the most liquid market in the world. At any time you can okryvat and close positions at the prices prevailing at the moment on the world market.

    
Efficiency of transactions. To make a deal rather ask on the phone with your broker the price of the currency you are interested and if the price offered by a broker, you are satisfied, to issue an order to buy or sell. After confirming (with voice) bank dealer of purchase or sale, the amount and currency price of the contract, the transaction is complete. All negotiations with the client's bank dealer recorded on tape, and in case of disagreement, these records provide evidence when settling disputable matters, which is the international norm.

    
No commission. In the forex market, as a rule, there are no fees, unlike other markets. On commodity, stock or futures markets with customers will be charged as commission and clearing fees exchange, they paid the broker commission in the form of a fixed amount for each committed transaction, or as a percentage of the transaction amount, etc. The basis for the broker (bank or brokerage firm) profit in the FOREX market is the spread - the difference between them quoted bid and ask prices of currency. Spread can be considered as payment for services.
Despite the seeming simplicity of the FOREX market is at the same time one of the most sophisticated financial markets, and to master the secrets of sufficient foreign exchange dealing requires years of hard and painstaking work. As in any other case currency dealings demands a professional attitude and just do not rush to market forces, not thoroughly prepared, so strongly do not feel the pain later.

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