How to Start Trading the Forex Market Part I

In this series of articles, Martin Maier examines both the world of forex trading.This soft is useful for those new to forex and also for consideration .This is part of a series of articles :

What is FOREX or FOREX market?
On the foreign exchange market (also known as Forex or FX) is the largest financial market in the world, with more than $ 1.5 billion changing hands every day.

It is larger than all U.S. equity markets combined and Treasury Board! Unlike other financial markets that operate at a centralized location (ie d. Stock exchange), the Forex market in the
world has no central location.

Is a global network of electronic banking, financial institutions and individual traders, all involved in the buying and selling of currencies.
Another important feature of the Forex market is active 24 hours a day, corresponding to the opening and closing of financial centers in countries around the world, starting each day in Sydney, Tokyo, London and New York.

Anytime, anywhere, there are buyers and sellers, making the Forex market the most liquid market in the monde.Traditionnellement, access to the Forex market only available to banks and other large financial institutions.
With advances in technology over the years, however, the Forex market is now available to all banks, money managers to individual traders trading accounts retail.

The time to get involved in this exciting on the world market has never been better than now.
Open an account and become an active player in the largest market in the world.

The Forex market is very different from trading in foreign currencies and much easier, trading in securities or commodities.

If you know it or not, are already playing a role in the Forex market.

The mere fact that you have money in your pocket makes you an investor in foreign currencies, particularly the dollar.
Holding dollars you choose not to keep the currencies of other countries.

Your shares, bonds or other investments, with the money deposited in your bank account purchases, represent investments that rely heavily on the integrity of the value of their currency against the U.S. dollar.

Due to the change in the value of the dollar and the resulting fluctuations, investment rates can change value, affecting your overall financial situation.

With this in mind, it should not be surprising that many investors have benefited from fluctuations in exchange rates, with the volatility of the currency market, as a means to increase their capital.

Example: Suppose you had $ 1000 and bought dollars when the exchange rate was € 1.50 dollars.
You would be 1500 euro.

If the value of the euro against the dollar has risen you would sell (trade) your Euros for dollars and dollars more than what you started with.

For example, you might see the following: EUR / USD last trade meansOne 1.5000 Euro is worth $ 1.50 USD.

The first currency (in this example, the EURO) is called the base currency and the second (/ USD) as the counter or quote currency.

FOREX plays a key role in the global economy, and there will always be a tremendous need to exchange currencies.

International trade increases as technology and communication increases.
Until there is international trade, there will be a FOREX market.
The FX market has to exist for a country like Germany can sell products in the United States and be able to receive in exchange for U.S. dollars to euros.
RISK WARNING:Risks of currency trading: currency trading margin is an extremely risky investment and is not suitable for individuals and institutions capable of managing the loss he has.
An account with a broker to trade foreign currencies on a highly leveraged basis (up to about 400 times your capital).
Funds to an account that is trading at maximum leverage can be completely lost if the position held in the account of an experience of one percent swing in value, given the possibility of losing the entire investment.
Speculation on the foreign exchange market should only be done with risk capital funds that if lost will not significantly affect the financial well-being of investors.
Note
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