How does leverage work in the forex market
After the cancellation of the "Gold Standard" by President R. Nixon, the dollar ceased to be tied to
to gold. This led to the emergence of a new monetary international system, the difference of which from
the former was that exchange rates ceased to be stable, began to fluctuate, and
fluctuations depended on the balance of supply and demand. Thus, currency exchange has become
occur in the forex currency market. So what is Forex and how does it work - more on that later
in our article.
How does the forex market work?
Initially, currency exchange in this market occurred only between banks, hence the name
"Interbank". In the future, private traders (traders) also got the opportunity
carry out trading operations in international financial markets through brokerage
companies that receive a commission or spread for their services. If you decide to get started
in financial markets, just open a special program on your computer and create
it has its own trading account, which will allow you to join the broker's servers. Thereafter
The broker will supply you with current quotes or prices (liquidity), and you will be able to create
orders to open or close transactions.
How does the forex exchange work? This question interests every newcomer to the financial market, so
like any money transactions require increased attention to the smallest nuances for successful
result and profit. Due to the fact that the Forex market is OTC and not
tied to a specific place, and also due to the difference in time zones, Forex works
around the clock, five days a week. The start of the trading week starts on Monday, at
00:00 in Kiev (or, GMT, on Sunday, at 21:00 GMT). Market opens first
Australia, then Asia, Europe and America open one after another, and so - every day,
until 20:59 GMT Friday (GMT).
It is important to note that at the opening of the European session, the activity of market participants increases, and
when you open an American, the biggest purchases and sales occur.
Anyone who expresses a desire to start working on Forex can go to the broker's website
770capital, register a trading account (link), deposit the amount in a convenient way
and start trading through a high-speed web interface.
How is profit generated?
So, you have chosen Forex as your main field of activity in the financial market. how
it works? Using the convenient web interface provided by the 770capital broker, you can
open charts of various currency pairs, analyze and carry out trading operations.
For example, a EUR / USD pair chart reflects the value of one euro in dollars or, more simply,
quotation EUR / USD. Trader carefully monitors price changes and when the quote
reaches a certain level, sets a buy or sell order.
If the price falls, in this case, the euro becomes cheaper, then we establish a sell order, and
on the contrary, if the price rises, the euro rises in price and we buy. After
the quote has changed by a certain number of points, the trader closes the transaction, and the income
immediately becomes available either for further work or for removal.
Having figured out how a Forex broker works, almost anyone can achieve a good
Forex earnings, but this will require experience and knowledge that you can
purchase on your own, however, a significant time contribution is required here. Or you can
use our materials and practical tips, which include proven strategies and
analytics. This will give you the opportunity to save time and avoid many mistakes that
beginners make and understand how does the forex market really work.