The Forex market is quite new to the investment world as compared to the stock market. The model which is used these days was built around 1970's. now, it is one of the biggest markets around, way ahead of the stock market. The estimated trading is around $2 trillion per day. The Forex is attracting more and more investors each day.
Before trading on Forex, one should know the fundamentals of Forex. Let us start with exchange rates. Exchange rate is the rate of exchange of two currencies of two countries. Though many currencies are traded, but the most popular include US dollar, Japan's Yen, the Euro, the British Pound, and the Swiss Franc etc. Other currencies like Australian dollar, the Hong Kong Dollar and the Canadian Dollar are also quite popular.
The exchange rate is calculated by dividing the numerator by the denominator where the numerator is represented by the currency quoted and the denominator being the base currency.
Let us take an example to make things more clear. If you want to exchange dollars for euro, here dollar is the quote currency. Quote currency specifies the amount of currency that you want to exchange. The base currency is euro here. First you have to find out the current exchange rate either through newspaper, internet etc. Now you multiply the exchange rate with the amount of dollars to exchange. If the exchange rate is 0.5, it means that you get one dollar for 0.5 euros. So multiply 1000$ with 0.5. which equals 500 euros.
Once an investor has understood these concepts, he will be able to start with currency exchanges.
While it may seem a little complicated on the surface, Forex trading can be simplified by using Forex trading software. Many of these programs, such as Forex Tracer, require no previous experience. Check out the Forex Tracer software and see how you can begin trading today.
Reuters - Russia aims to extend its control over energy deliveries to the West and it is important that European countries push forward on efforts to diversify routes for oil and gas supplies, a senior U.S. official said on Monday.
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