What Is Trading?.

Trading (or operating) consists of buying and selling stocks or other financial products generally short-term, normally even on the same day. It is not actual investment, it is speculation, trying to take advantage of small price differences to achieve immediate profitability, although this presents a high risk.
To carry out trading, just need a computer and open an account with a broker, this can be a bank or a financial institution where the money will be deposited.

To make trading we need to know three basic concepts:

In the trading Psychology: is based on the control of emotions, the feelings have a direct impact on the capital account, because if these disappointed, upset or unsure, the account will suffer it. Emotional control is the main weapon that a trader's success has, greed and fear take a trader to ruin, so you have to use the intellect rather than the instinct as a guide, and learn how to control the emotional state.

Proper risk management: risk management aims to survival of the account and secondly the ability to achieve consistent results. Professional traders do not risk more than 2% in each operation.

Trading strategy: all the knowledge and technical learning needs to end in a good trading strategy, which is a plan that adapt to determine entry and exit signals.

What is forex?

Currency Forex (Foreign Exchange FX) market is the largest financial market and liquid in the world, with a daily trading that exceeds the daily joint negotiation of all world stock and bond markets. It allows investors from around the world buy and sell foreign exchange through the exchange between bidders and applicants of the same.
When it comes to investing in currencies should bear in mind that currency trading pairs, so that the first currency indicates the number of units of the second currency according to the exchange rate. In this way, a quote euro 1.40 dollar (EUR USD) indicates that a euro is equivalent to 1.40 dollars.

It offers an operating with leverage, since when it comes to trading Forex'll just put a percentage of the total amount of the transaction - from 2.5% - in concept of guarantees.

They allow to invest upward (buy currency pair) and reverse down (sell currency pair) on any currency pair, given that there are no restrictions on short-selling in.

The FX market belongs to the category of non-organized market or OTC (over the counter). It's a decentralized market, whose operations are performed via the Internet or by telephone.

Rates of Interest in the Forex Market

An interest rate is the price which is paid by those who ask for money lent. Interest rates refer to the percentage of money against an amount of money that was lent to someone. Seen from a different angle, interest rates can be seen as the payment of compensation for the risk and the loan of money. Without interest rates, persons, banks and financial institutions would not be willing to lend, since its services as money lenders would not benefit them. In terms of foreign currency interest rates, the lender can be an investor who has money or assets and the borrower can be a bank anywhere in the world. The investor lends money to the Bank and receives, after a set period, an interest that is added to the original amount that was paid according to interest rates that govern to the currency market.
Foreign currency interest rates are usually expressed in terms of a percentage amount over a period of one year. Forex trading interest is credited on a daily basis. Interest rates are central to the changes in the prices of currencies in the foreign exchange market.

What factors affect rates of interests of foreign currencies?

Interest rates of the supply and demand: the foreign currency interest rate levels are a factor of supply and demand for credit. When there is an increase in the demand for borrowing money, the interest rate of the currency increases. On the other hand, the supply of credit will require currency interest rates down while a decrease in the supply of credit will force them to increase.

Interest rates and inflation: foreign currency interest rates are also governed by inflation rates in each country. Interest rates will increase to the extent that inflation is higher. Inflation refers to the fact that a given amount of currency will suffer a decline in their purchasing power in the future. A given amount of money will buy fewer goods in the future than today. The borrower money needs to increase the interest rate to ensure your investment against future inflation.

Volume of Currencies In The Forex Market

The volume of currency measures "total value" of the movement of the market. If a currency pair has a strong market movement, the perceived strength of this particular movement depends on the amount of the volume for that period. On the other hand, supported a larger currency volume movements are more important. To monitor the volume of currency, an investor should not leave aside the NB market movements. Important movements usually come into a tailspin when more volume than normal. The volume of currency can help investors to prepare for a break of trends. Investors should also be able to identify periods where there is a consolidation and calm ranges since they will have a volume lower. The volume of currency figures are significant because when a large amount of business is often change within a certain time period, it means that there are several sellers and buyers who established that price. This means that logoff is correct because it was achieved a consensus among investors who are selling and those who are buying. If the volume of foreign currency is actually low, the price of trade established by fewer organizations and individuals and may not be a real representation of what really is.
Currency Forex volume indicators vary from the indicators based on the volume of shares. Each negotiated action is considered a volume, so sell hundreds of actions and then that someone buy those hundreds of actions considered hundreds on volume of shares. On the other hand, the currency market is decentralized and it is possible to track all the amount of contracts on a given day. That is the reason for which the volume of currency is measured counting how many changes of prices or basis points (ticks) there during the session. There should be a set amount of signed contracts to move the price of one way or another and each tick represents this number. This means that you still can follow measuring volume.

The volume of foreign exchange should not be used as primary evidence, but rather, as a corroboradora evidence of trends.

• The volume of foreign currency can be used to confirm price changes. If, at the beginning of a trend, there is an increase in the activity of the volume, this could indicate a weak trend that has no sufficient commitment.
• If there is an increase in the amount of the volume of currency, this could mean that a price change may be approaching. The direction of motion during this increase in volume of currency may possibly indicate some future action.

Complementary Services in the Forex Market

Some complementary services of Forex brokerage companies include standing orders. The key benefits of having standing orders as a complementary service, are that the market is monitored on his behalf. Simply choose your desired Exchange rate and your order will be processed automatically if the Forex market reaches your chosen rate. The good thing about this type of complementary service of Forex is that it will not be subject to any obligation of making a final purchase if the market really does not reach its desired rate. A permanent order allows you to capitalize on positive exchange rates when you cannot personally monitor the market or make a transaction. Some representatives of brokerage companies can help you to decide on the rate that is appropriate for the current market conditions. The standing orders are one of the best complementary services that there is and can be monitored.


When we look for complementary services of currency, we should note that it is more likely that we get these free services where brokers that offer complete services, despite the fact that the Internet has made it easier to find discount brokers that offer all kinds of services and gifts. When you choose to use discount brokers you should be able to make their own decisions and be of the opinion that save on the cost of operations is more important than the complementary services aggregate Forex. Full-service brokers are usually best for beginners since they offer consulting for personal investment, as well as reports of research on investments that were created by your company. Remember to not pass discount brokers since more and more are beginning to offer research reports on various types of stocks, bonds, mutual funds and other investments and others are doing research reports available to our customers as part of their free services. We hope that you have enjoyed our complementary services of Forex article and that is noncompliant now with a company of Forex which does not provide any complementary services of Forex. If you can find complementary currency exchange services for the same price or slightly more much better!

The market 24 hours a day for up to 14 weeks, after which must choose if you renew your standing order if the market has not reached its specific rate. Most companies also offer you the opportunity to cancel your standing order if it has not been executed in case that change of opinion about your foreign currency needs. Another great service Forex complementeario is when your broker gives you transmission quotes in real time. It is excellent that brokers can now offer this complementary Web service, since it is something that once was available only through very expensive services companies.