It is now being taught how profits are realized in the trading currency in principle.And the principle of trading currencies as I saw no different from the principle of trading any other commodity.The exchange of buying and selling currencies between different banks and large financial institutions and tens of thousands of financial institutions to smaller associated with each other by networks where the share of these institutions in various parts of the world and throughout the night and day, buying and selling rates currency all buys and sells on behalf of its clients, which may be countries or companies intercontinental or just individuals.
This is the exchange of international currencies, which she said of the stock exchange through the telecommunications networks, computer and Internet OTC.You will be also linked to this market and will be able to buy and sell currencies through your brokerage firm, which will choose to deal with them, which in turn will receive hundreds of institutions around the world.Course will be associated with a brokerage firm through the platform will provide you with a brokerage firm that deals with it and you will know which currency you-go and you will be able to buy or sell these currencies through the command brokerage firm - with this program - selling the currency that you want, or purchased at a price that it deems appropriate.Learn now that there are two types of entities that buy other currencies, the dollarThe first type are the ones who buy the currency to be used as a tool for trade exchange, investment and travel.The second type are the ones who buy the currency to use any commodity to sell and take advantage of price differences between buying and selling and those are the speculators, which you will be one of them.Before we get more in this exciting field run on some key concepts
MajorsAs you know, each State has its own currency in the international market are given for each currency code special Symbol know it to facilitate interaction between dealers without errors occur for example, may be similar to several countries in the name of the currency with which it deals dollar is the name of the currency of the United States of America and the currency of Australia and the currency of Canada and many countries other, even talking to errors when buying and selling has been agreed internationally to be given the currency of each country has its own code symbol known in different parts of the world.For example, the code is the U.S. dollar USD US dollar shortAnd the symbol of the Canadian dollar CAD is an acronym for the Canadian dollarAnd the symbol of the Australian dollar is short for AUD Australian dollarThus, for each currency and keep track of any state code of its own symbol you know it.You are, in principle, you can sell and buy the currency of any country in the world. But trading in the forex market is mainly concentrated buying and selling of four currencies, namely:Euro: the single European currency and Symbol EUR.JPY: Japan and a currency symbol JPY short for Japanese yen.Pound: the currency in which Britain and Symbol GBP short for Great Britain pound.CHF: Switzerland, which is the currency symbol for CHF short Confidralic Helevitica Franc.In the currency market is 80% of trading in the sale and purchase of currencies the previous four.But for what?That is, when you want to buy the euro will pay what interview? When you want to sell the euro so what you'll get?When you want to buy the yen will be paid what interview? When you want to sell the yen so what you'll get?U.S. dollarDealing buy and sell currencies will be past the whole against the U.S. dollar.Remember we said that currency trading is in the form of pairs of pairs When you buy a currency must sell - pay - against which another currency, and vice versa. The currency is obtained by the currency you are buying the currency in which pay is the currency they sell.In the currency market when you buy the euro interview will sell the U.S. dollar, euro and when you sell the U.S. dollar will buy interview.When the interview will sell yen to buy the dollar, and sell when the yen the dollar will buy interview.Thus, the pound sterling and Swiss franc.You may wonder: Why are most of the transactions in these currencies in particular? Can not sell and buy other currencies?Answer: Did you ever think that you go to the ATM and requests to buy Thai Baht?!!If you try to find it difficult to find the ATM sell you Thai BahtWhy?Because few people are that can use the Thai currency in your country.But I went to the cashier to buy or sell U.S. dollars or pound sterling example Vstgdama easily because there are a lot of people they are dealing with these two currencies are acceptable not only in the United States and Britain but from around the world that any demand for them is high.Because the euro and the yen and the pound sterling and U.S. dollar are the currencies of countries with the largest economy in the world, and because most of the dealings between nations and individuals is one of these currencies is therefore 80% of trading in these currencies.The Swiss franc also love that the Swiss economy on the strength of the economy, outweighing the former only four countries that make the custom of the world economy and its currency the Swiss franc is a safe haven when the major international calamities, but no doubt you know that most of the world's rich keep their money in Swiss banks ..!!Because the U.S. dollar is the most important of these currencies at all.It is the main currency for each currency the previous four.When you buy a euro, you pay the dollar and sell them when you get dollars.When you buy the Swiss franc and the dollar you pay when you get to sell dollars.
As well as for the yen and the pound sterling.The dollar is the common currency against all currencies are treated as every other currency against the dollar on the unit:The euro against the dollar EUR / USDThe pound sterling against the dollar, GBP / USDDollar against the Japanese Yen USD / JPYThe dollar against the Swiss Franc USD / CHFThis is called when the four currencies are bought and sold against the dollar Majors.Other currenciesIn addition to dealing in the previous four currencies against the dollar, you can also sell and buy currencies of other countries in the currency market also against the dollar, such as:The U.S. dollar against the Canadian Dollar USD / CAD.Australian dollar against the U.S. dollar AUD / USD.Ie when you buy the Canadian dollar will sell - will pay - the U.S. dollar, and when you sell the Canadian dollar will buy the U.S. dollar.The same thing applies to the Australian dollar.Of course you can buy any currency against the dollar, for example, you can buy the Swiss franc and U.S. dollar selling as you do when you go to the money exchanger.But in the international currency market, the majority of the speculators do not exceed the currencies in which we have mentioned is concentrated 80% of trading on the four major currencies against the dollar.This gives the advantage of focus of the shops the forex market from other traffickers to other markets.
CrossesYou may wonder what if you want to buy a currency without paying the U.S. dollar, but I have to pay - for sale - another currency?What if I want to buy euro and sell the pound sterling interview? Is this possible?Answer: Yes possible, we have said that you can buy and sell any currency against any other currency.You can buy the euro and the pound sterling interview sell EUR / GBP.You can buy and pay an interview Franc Japanese Yen CHF / JPY.Thus, you can buy any currency against any other currency without the need for the U.S. dollar.Called the currency to be bought or sold for other currencies than the U.S. Dollar Crosses.The most famous hybrid currencies that are traded in the currency market are:The euro against the pound sterling EUR / GBP.The euro against the Japanese Yen EUR / JPY.The euro against the Swiss Franc EUR / CHF.The pound sterling against the Japanese yen GBP / JPY.The pound sterling against the Swiss franc GBP / CHF.But as we mentioned earlier, the vast majority of traders are focusing on buying and selling major currencies, mainly the four, and there are those who prefer dealing in currency trading to some hybrid.
We advise you to start your business in trading currencies in the work focusing on the major currencies onlyYou can then reach an advanced stage of knowledge and experience to move to the work of hybrids currenciesIn fact, the four major currencies with the Crosses that we have mentioned just now accounts for more than 95% of trading in International Currency Exchange.RATESTo be able to buy something, he should know the price ..If you want to buy a car they must first know the price as well as any other commodity.Before a telephone call they must know how much the price of this call as well as any other service.So how can you know that prices of goods and services?In other words, how to evaluate the prices of goods and services?ANSWER: currency.The purpose of the currency is the valuation of goods and services.For example, car is worth 35,000 Swiss francs, or $ 10,000 or 6500 pounds.The phone call to $ 3.5 Swiss francs per minute or one dollar or 0.70 pounds.If the currency that determines the prices of goods and services, what if we want to buy currency? How can we know the price?Answer: in another currency.If we say that the U.S. dollar is 3.5 CHF.Any to get one dollar must be paid 3.5 Swiss francs.Or say that the U.S. dollar is 120 yen.Any to get one dollar must be paid 120 yen Japanese.Thus, each currency rate against any other currency.That the price of any currency is a currency amount to be paid for another currency.If you want to buy or sell the dollar against the four main currencies must know the price of these currencies against the first.If the price of the euro against the Atarho 0.90 or what can be expressed as the following EUR / USD =. 90.It means that you must pay 0.90 dollars (90 cents) for one euro.If the price of the pound against the dollar is 1.5 or what can be expressed as: GBP / USD = 1.5.It means that you must pay $ 1.5 for one pound.
Base currencyWe want you to miss a fundamental point:Learn now that the price of the coin is what must be paid from the currency for another currency.For example: GBP / USD = 1.5The question is the meaning of the previous version we would have to pay $ 1.5 for one pound, or must pay 1.5 pounds for one dollar?In this formula: USD / JPY = 120Does this mean we have to pay 120 yen for one dollar or have to pay $ 120 for one yen?So that they can know the answer to these questions with any kind of currency you have to pay attention to the order status symbols in the formulaThe currency symbol which is placed first in the formula called the Base currencyAnd the price is the amount required payment of the second currency for one unit of base currency.Remember that good ..When we say: GBP / USD = 1.5Faramz Fairy put first in Formula One currency basis in this formula is the pound (because the code first) and this means that the price of the subject in the formula is the amount required payment of the second currency (the dollar) for one pound (one unit of base currency).That is, we are here to pay $ 1.5 Mtabann for one pound.When we say: EUR / USD = .90Faramz euro put first in Formula One currency basis in this formula is the euro (because the icon first) and this means that the price of the subject in the formula is the amount to be paid from the second currency (the dollar) for one euro (one unit of base currency).That is, we are here required to pay 0.90 dollars for one euro.This rule applies to all currenciesWhen we say: USD / JPY = 120Faramz dollar here is the first topic is the base currency price quoted, so the subject in the formula is the amount to be paid from the second currency (Yen) for one dollar (one unit of base currency).Ie, we required to pay 120 yen for one dollar.When we say: USD / CHF = 1.4The dollar is the currency here is also the base price shall be subject is the amount owed from the franc (the second currency) for one dollar (one unit of base currency).What is the difference?You may ask what is the difference between say USD / JPY or say JPY / USD?Answer: We said that the currency symbol in the formula there first is the base currency, and we said that the price is the amount required payment of the second currency for one unit of base currency.When we say that the USD / JPY = 120Ie, we required to pay 120 yen for one dollar.This means that every dollar = 120 yen.But when we say JPY / USDHere the base currency is the yen, which will be the price quoted is the amount required payment of the dollar (which is the second currency here) to get the yen and one (here the base currency).If every dollar = 120 yen equals how many yen per?Equal to 1 / 120 yen per a dollar = 0.008, less than one cent.When we say: JPY / USD, we ask how much is required to pay the dollar (the second currency) to get the yen and one (the base currency) and the answer will be: You must pay 0.008 dollars for one yen.But when we say USD / JPY, we ask how much of yen required to pay (the second currency) for one dollar (the base currency) and the answer will be:Must pay 120 yen for one dollar.Which is correct?Both are correct and the issue depends on what currency you want to be paid and what the currency in which you want to get.If you want to get paid dollars and yen, you have to pay 120 yen for one dollar.If you want to get the yen and the dollar you pay to pay $ 0.008 for one yen.
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