Are you learning about the foreign exchange market (Forex)? This is a huge market and some people are still unknown. So today, Blogtienao (BTA) gives you the most basic knowledge about forex market.
Now, let's Blogtienao also find out What is forex .
LàWhat is the Forex Forex Market?
Forex stands for Foreign Exchange. It also has many other names such as Foreign Exchange Market, FX, ... In Vietnam, it is called the foreign exchange market.
This is a global decentralized market for exchanges currency. Because this is a global market, it has extremely high liquidity and huge trading volume.
The 24-hour trading volume on the forex market averaged around USD 6,6 trillion (4/2019), an increase of 1,5 trillion compared to 4/2016.
✅ History of forex forex market formation
In 1971, the Bretton Woods monetary management system was retired, in order to maintain a constant exchange rate. Countries with strong economies have pegged their currencies to gold.
Since then countries have gradually shifted to a floating exchange rate system. At this time, based on actual supply and demand will determine the buying and selling value of these currencies on the market.
The historical developments in 1971 were the cause of the creation of the current foreign exchange market.
✅Features of the FX market
- The market is global in nature
- Extremely high liquidity
- Easy access
- Operates 24 hours a day, 5 days a week
Is oreForex a multi-level scam?
Forex absolutely not multi-level!
But there are projects that borrow the name of Forex companies, foreign currency exchanges, forex robots,…. They call for investment in these packages and then you just don't count money.
It is these components that bring a bad reputation to Forex. So, please do not misunderstand that Forex is a multi-level or a scam!
IWho can participate in the foreign exchange market?
Before, only major banks traded Forex. But with the development of the Internet all barriers were broken down. Now everyone is participating in this market.
You are a person with modest capital. You have an Internet-connected phone. So you are already eligible to enter the market!
Maybe you do not know!
When you travel Thailand. You change from VND to Thai Bath (THB) for personal spending. By doing this, you have accidentally entered the Forex market already.
Nên Should I invest in Forex?
Anything that makes a profit is risky. The more risk the profit is. The foreign exchange market is no exception. There are people who make profits. To win the market you must first win yourself. You must have the discipline and the way to manage your own risk.
When you are new to the market, you should use it with a small amount of capital. When you feel you have experienced it, it may increase. Moreover, you have to prepare mentally well when entering this market. Because this is an emotional game. When you let emotions overwhelm you are already lost.
“To get return without risk, to gain experience without the danger and to get rewarded with nothing. This is as impossible as living without being born. " - APGouthey
✅How to "make money" in the Forex market?
It is known that when entering the foreign exchange market, people always sell one foreign currency for another. In this market, you only need to judge the price up or down. From those judgments, you make trades on currency pairs for profit.
For example: You have the Euro (EUR). You see EUR prices rise against the dollar. At this point, you will choose the EUR / USD currency pair to sell the Euro. This means you sell EUR for USD. Conversely, when you see the Euro price go down and you think it will rise again. You also choose EUR / USD to buy EUR in USD. This buying and selling action will bring you profit in this market.
Market analysis helps you reduce your entry risk. At the same time, it increases the chances of winning significantly. But to judge which direction the market goes is really not that simple. However, you can still analyze based on several methods.
Methods of basic analysis
With this method you have to track the situation of a country. The power of money goes hand in hand with the power of the nation. You should follow the news, news… about the situation of that country.
Such as the US-China trade war, the yuan price dropped to a record. At the same time, gold became a safe haven for investors. The demand for gold increased, so the price point also increased.
With this analysis, you will have a long-term view of the market. Since then making investment decisions in the best way.
Methods of technical analysis
This is the method that traders often use. The past data, indicators, candlestick patterns ... help you predict a part of the market trend. Because prices tend to repeat what happened in the past.
This method helps you have a short-term view, medium-term even long-term view of the market.
Unlike other markets. The Forex market is difficult to manipulate so prices are determined by supply and demand. When a coin rises in price. This proves that many people think that this currency will increase rather than decrease. To know which side prevails. You do not need graph analysis or news. The only thing you need to do is analyze market sentiment. Market sentiment is hard to grasp. But you can also join the community to follow. From there, you can partially predict the general psychology.
✅ Trading time of forex market
This is a decentralized market so there is no specific transaction point. The foreign exchange market is very dynamic. It operates 24 hours a day except Saturday and Sunday.
Although operating 24/24 but the market is also divided into sessions. Major sessions: Australian Session (Sydney time zone), Asia Session (Tokyo time zone), European Session (London time zone), American Session (New York time zone). Each session will have fluctuations, different trading volumes.
Usually, the volume is high in the European session. The market became more active when the US session started.
When the two European and American sessions overlap (New York mornings and London afternoons) are the busiest times. Trading volume at this time accounts for the majority of the market more than 5 trillion USD a day.
Hopefully through this article, you already know the foreign exchange market What is forex Alright!
If you still do not know what Forex is, do not hesitate to leave a comment below the article. Blogtienao (BTA) will try to answer your questions as soon as possible.
Thank you for viewing the article and wish you success!