the daily turnover of the foreign exchange market has increased several times, amounting, according to the latest data, to about 4 trillion. American dollars. This growth was mainly due to the widespread development of Internet technologies, which allowed private investors to actively participate in foreign exchange transactions along with the usual large participants - banks, insurance funds and international companies.
In this financial market, a trader does not work with a commodity (bonds, stocks) and not with the currency itself, he works with a currency pair. If we operate in terms of ordinary markets, we can say that in a pair the first currency is a commodity, the second is money for which this commodity is purchased or sold. For example, buying GBP / USD means that you are buying British Pounds with US Dollars. To conclude transactions, a trader needs a special computer program - a trading terminal, with the help of which one can trade currency via the Internet. Having installed a trading terminal on his PC, a trader, in addition to selling and buying currency, will be able to efficiently and quickly analyze the situation on the market, receiving the latest news. The most popular software for online trading is MetaTrader. It is simple, convenient and straightforward.
Today brokers, Alpari in particular, offer work with both currency pairs and futures deliveries and shares. But many people trade in currency. Note that the foreign exchange market is attractive to beginners for the following reasons:
High leverage . Interest-free loan provided by the broker Alpari. Using, for example, a leverage of 1: 100, a player can make a deal for 100 thousand dollars, having invested only 1000 dollars of his money (one hundred times less). The presence of such a high leverage has led to the fact that Forex trading has become available to almost everyone. It only takes a couple of hundred dollars to get started.
Opening hours . The Forex currency market works around the clock, so a trader can choose the most convenient time for trading.
High volatility . The price of a currency is constantly changing, so a trader on the difference in rates can make a profit much faster than in other markets.
On Forex, you can get income both when the price of a currency rises and falls. There are a huge number of different trading strategies, but they all boil down to the basic principles - work either on the rise or on the fall. The most important thing for a trader is to buy low and sell high. It is only important to determine the optimal time to open a position. This will help the analysis of the market situation. With its help, the player will be able to predict where the price will go - down or up.