First of all, it is necessary to tell that currency gamble belong to the class marginal transactions which are not regulated by supervising bodies and the size of margin or credit “shoulder” is defined only by the agreement between the client and that bank or broker firm which provides to it an exit on Forex. The size of it marginal credit depends, actually, only from the sum of trading pledge of the client and usually makes 1:50 or 1:100. That is, having brought pledge in $2000 and having “shoulder” 1:100, the client can make transactions for the sum equivalent $200.000. And in the rest the currency trading account functions the same as and marginal broker investment account.
Depending on various trading, economic and other indicators, a discount rate, a policy of the central banks, time of days, preferences and expectations of participants of stock jobbing, from set of the various reasons of the quotation, that is the price of currencies, are in continuous movement. The problem of the dealer to try to define a direction of change of the price of currency and to buy currency the price on which raises, or to sell currency the price on which falls, and then, having made the return transaction, to get profit.
Pledge of successful trading activity in global market Forex is the support on such aspects of process of investment as:
- The fundamental analysis
- The technical analysis
- Risk – management
- Psychology
The fundamental analysis means an estimation of the basic financial indicators which comes from the economic news published by mass media agencies and specialists of the state statistics. Fundamental indicators appear in advance stipulated dates and hours about what investors and traders know from specially made calendars. Thus last value of this indicator, an average expected this time, and also disorder from maximum to is minimum expected value are usually given. On the basis of these data the skilled trader can be prepared for an indicator exit. Usually, traders by the time of publication of the significant fundamental indicator try to close all opened before a position or at least to reduce their volume so that the unexpectedness could not worsen the trading account of the trader essentially.
The technical analysis is spent for the purpose of definition of a direction of movement of the price and time for the conclusion of transactions. Using the technical analysis, we can estimate a current direction of dynamics of the price. Variants are possible:
- Movement upwards
- Movement downwards
- Flat
Estimating trend period of validity:
- A trend of short-term action
- A trend of long-term action
Estimating the period of action of a trend:
- The trend beginning
- A trend maturity
- Trend end
People who took the decision to participate in forex trading must start from learning the basics of this market to make sure you do not have problems with this industry.
There is another option – you can hire professional traders to do this job for you – read more about forex investment here. Also make sure to search for the knowledge in a good forex book.
