forex

There are many definitions of the forex market, however, summing them up, we can say that Forex:
- This is a market in which currencies of different countries are a commodity;
- is a set of transactions for the purchase or sale of one currency for another.
The modern forex currency market is represented by currency transactions performed at any time of the day and anywhere in the world by its participants: central and commercial banks, stock exchanges, brokerage firms, various large companies, investment and insurance funds, private investors ...
In the past, only large banks were market participants, but today, thanks to many broker companies, entry into the foreign exchange market is open to anyone who wants to.
Participants in the forex market buy this or that currency in order to subsequently sell it at a higher price or sell the currency in order to later buy it cheaper. And in both cases, the financial difference between the first and second transaction is the profit of the trader. Thus, it becomes clear that in order to gain profit in the forex market, it is necessary to conclude at least two transactions. Buy first and then sell the same quantity of goods. Or vice versa, first sell and then buy. In the terminology of the forex market, these actions are called opening and closing positions. Consider an example of how the transaction is made and the profit is calculated:

Suppose you assume that the euro against the dollar will rise. Therefore, you rightly decide to buy euros for dollars.
current course eurusd - 1.8958 / 1.8970
Your deposit: $ 300
Leverage: 1: 100
thus, the amount you have for making transactions = deposit x 100 = 300x100 = 30.000
You decide to buy 0.1 lots (this is always 10,000 units of currency)
the purchase is made at the ask price (indicated second in the quote)

Your transaction:
1.897010000 = 18970 (the amount of money required to complete the transaction)
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In order to determine how much your personal funds are needed to complete this transaction, a pledge is calculated (the amount received is divided by the leverage):

18970: 100 = 189.7 (You have a sufficient amount of funds on the deposit (189.7 ‹300), therefore, this transaction is possible)

Now let's try to buy 0.2 lots:
189702000: 100 = 379.40 (379.40 ›300, therefore you have insufficient funds on the deposit and the transaction is impossible)

After some time, the quote has changed, and you decide to make a reverse transaction, that is, to sell the euro.
The current quote is eurusd 1.8978 / 1.8990 (considering the spread, the price has changed by 8 points)

Your transaction:
1.897810000 = 18978 (this is the total value of the transaction)
The difference between the results of the first and second transactions - this is your profit or your loss.

18978 - 18970 = $ 8 (in this case, the profit was $ 8)

It should be noted that during real trading all calculations are performed by a specialized program. However, the ability to make calculations independently is necessary for the trader to draw up his own strategies and forecast long-term transactions.
The advantages of working in the forex market are obvious and do not need to be listed. It is enough to point out such aspects as independence, free schedule, unlimited earning opportunities - and the trader profession turns out to be the undisputed leader among the most attractive activities.
However, working at forex requires serious preparation and possession of a number of qualities necessary for the successful execution of transactions.
In order to work in the foreign exchange market it is necessary:
1) To be able to deeply analyze the economic and political reality, to predict the direction of the course of a currency based on various economic indicators.
2) To possess the knowledge of technical analysis - to be able to predict a change in the rate based on the indicators of graphs of currency movement.
3) Have a sufficient degree of self-control, the ability to restrain their emotions and relate to work without excitement and excitement.
Only a combination of the three skills listed above will allow you to achieve success in your work at forex. If you feel strong and capable of such work, then with a computer, Internet access and the minimum deposit amount, you can start trading currencies right now.
It should be noted that for a more detailed acquaintance with the forex market, it is necessary to study the special literature.