Forex Trading

Forex Trading
The Forex market is known to trade in foreign exchange and currencies, to be made to the forex market (Foreign Exchange Market). In this global market meet foreign exchange deals and foreign demand. Investors benefit from the existing exchange rates here, and around the clock.

The history of Forex trading

As early as 1880 had credit investors the opportunity to make payments on a foreign bank account to be. The Bretton Woods agreements and the establishment of the World Bank developed in the summer of 1944, the first fixed exchange rates, which were only eased in 1969. Since then, market participants on the international stage were exposed to great fluctuation, which also brought the risk of falling exchange rates with them. The cause of the currency fluctuations is mainly due to state or state political events, which is particularly important for market participants. Today the foreign exchange market, almost all currencies are traded. The most common currencies are next to the U.S. dollar and the euro, the American and the Australian dollar.

Market participants in the foreign exchange market

On the Forex market, it is possible to exchange foreign money for domestic currency and vice versa. Major players in the Forex market are primarily banks but also private foreign exchange dealers, industry and foreign exchange brokers in the Forex market active. For some time it is even possible to private investors through dedicated Forex broker in the foreign exchange market to be active. What is needed is this merely a trade account and a margin account, over which the security can be posted.

Trading in the foreign exchange market
To the Forex market can be proactive, by a commercial account with a Forex broker is necessary. With the software provided by the broker, it is possible to open and close trades and thus to benefit even from small fluctuations in exchange rates. Furthermore, the software offers the possibility to be always informed about important economic and political events that can affect the price of a currency. Alternatively, ask the broker and trading signals available, which are to be supplied by mail or even via SMS.

The reason for the above-average opportunities for profit in Forex trading is the use of a lever. This is due to the small sum in relation to the trading capital, which can vary depending on the broker with 1:50 to 1:400. The larger of course, the lever can be agreed upon, the greater the opportunities for profit, including the losses can be potentiated. To be able to get a first insight into the Forex trading and make experiences, many brokers offer demo accounts that can be used free of charge.

The Forex Broker

In Germany, investors have the opportunity to use several different Forex brokers. These differ in the amount to one of the provided lever, on the other hand the number of currencies in which investors are available. Furthermore, some Forex brokers who specialize on the trade in raw materials, which is also profitable. Other distinctive features of the Forex broker is the minimum deposit size. Some brokers, the securities may already be opened from one U.S. dollar, whereas at other brokers are paid a minimum of $ 250 required.