Forex Trading: Market Laws

By in Intro to Forex on May 24, 2020

The currency trader can be compared to the motorist. Laws of movement of the market and principles of its development are very similar to driving laws. For example, let take the car ride that is a very beautiful toy. Behind its brilliant cowl the powerful and productive engine is hidden. As also the finance: here are weight of details, procedures and enough difficult operations.

But on roads of the exchange market there are no control posts, and this fact heats the soul. However the market itself possesses property to punish infringers of financial discipline. Therefore before the work beginning in the market it is necessary to study “rules of currency movement”, “controls”, and other concepts. As well as in any business, work in the exchange market needs to be begun with the small steps. After all the exchange market demands the same attentive studying, as well as a commercial real estate.

At first it is necessary to find out, who needs to be known by sight. The most important currencies are an US dollar, euro, Japanese yen, the Swiss franc, English pound sterling. On a share of these currencies is put the basic trade volume in market FOREX. In the London market occurs about 32 percent of turnover, in the markets of the USA – 18 percent, in the markets of Germany – ten percent.

Market makers are rather numerous. They are brokers, commercial banks, investment institutes, insurance funds, hedgers, private investors. Commercial banks and broker houses influence processes of pricing and life of all exchange market. And central banks of the different countries also are interested in market FOREX. Their mission is not only maintenance of national economy and the investment into building and to comfort an existing exchange rate.

How to start to work in the market? At first it is desirable to conclude the agreement with bank-broker. Then it is necessary to place the mortgage deposit (we will begin with few hundred dollars) in this bank. Naturally, the good work place, with computers and phones is necessary. Thus it is necessary to know certain terms and to study the trade theory.

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