How to make transactions on the Forex market

But, first, the structure of the market Forex. Like all markets - Forex - a set of buyers and sellers of currencies. They are referred to operators Forex. These are large banks of various countries, including - central banks, the largest investment companies, pension funds (in most - North). Operators are traded between a range of currencies, making the transaction. The minimum value (contract lot) transactions - about $ 1 million. Operators linked ad network that enables instant conduct transactions. Significantly, while there is no physical movement of money, that is, if napimer, the Japanese bank will buy one billion pounds for yen, from the London bank, no one will rush to load them on a plane and sent under heavy guard in Japan. Really, why? After a day (or a few minutes) Japanese bank to sell these pounds German bank for the buck, and he - a London bank for the yen. Do not look for a special meaning here, not wrinkle brains - is the problem of market operators. The main thing for us - the small investor in this market can not fall in any way. How did he get there?

Yes, indirectly, how else! Banks sell because why? Or, on the instructions of their clients, or speculate (incidentally, for many Western banks are almost the main way of profit). Just in the last 15 - 20 years, having so-called brokerage firms or brokers who are on the one hand, customers, operators Forex (banks), on the other hand, the possibility of providing the small investor to purchase transactions in currencies on the Forex market is relatively small lots (tens and hundreds of thousands of U.S. dollars).

Here and henceforth I will devote special terms are taken under consideration for our activities. Try to memorize them immediately.

It is now clear - in order to be able to trade on Forex, we need a firm - the broker, which we will conclude an agreement on granting us access to the commission trades in Forex.

About brokers talk more later, now must embrace the whole picture, the details can then be considered.

Proceeded to ascertain the most important thing - you need to contract with a broker and that we get from the broker? First - a small digression. I hope all readers understand that to that - you get, it is necessary first that - then invest. From zero is obtained only zero, how much you did not multiply. Trading in the currency market - the form (or mode) of investments for profit. Moreover, the described type of investment is different, on the one hand, a potentially unlimited amount of profit, on the other hand, the increased risk. Therefore, if you expect to just arrive somewhere, sign up for Forex (contract) and to trade profitably, leave these thoughts. But those who have a couple of hundred dollars and just wants to increase them, better go to the casino or spend the money on his girlfriend - benefit more. Work on Forex - is overwhelmed by serious, respected, and, perhaps, respectable, requiring certain financial investments.

So, to conclude a contract with a broker to open an account, or this broker or bank. What this requires money? To deal with this issue, find out what "margin trading" - the most important concept is the foundation not only monetary, but also any other market.

Please read carefully and ponder read, as discussed will be very important concept