Forex Exchange or better known by the acronym of FOREX, is
exchange or buying and selling currencies. It can simply be described in
everyday life, for example exchange rupiah to the US dollar or other currency
at a money changer.
Have you done this? Then where the benefits?
Easy, with the currency exchange rate differences between
countries and price fluctuation (rise and fall of currency values) used to take
advantage. Buyers will get the benefit if you buy a currency at a low value and
sell them when the price of the currency rises or deemed high enough.
The most powerful reason is the level of liquidity or forex daily
turnover is very high, reaching 4-5 trillion dollars per day. The high velocity
of money in forex is very possible for the transactions at any time. This means
that if someone wants to sell it is certain there will always be ready to buy
it.
Thus, if you invest in Forex trading, you will get the following
benefits :
· traders can get keuntunga if currency prices rise or fall. This is
in contrast to the stock trader where profits are only picked when prices rise
· Fees charged for forex trading also arguably lower. In general, a
trader will be spread (the difference between buying and selling price) or a
commission charged by the broker. Spread this varies, depending on the type of
broker, there are brokers who charge a fixed spread, there is also spread
fickle.
· Forex has high liquidity
factors, other than that the forex market is more dependent on global
macroeconomic factors and micro-economy country. It is profitable retail trader
(smaller players) because the economic fundamentals of information usually
available freely.
There are two types of analysis in the forex trading world,
namely:
1.
Fundamental Analysis
Analyzing the
condition of a country of outstanding news With the assumption that if a
country's economic condition is good, the more investors will exchange their
money into the country's currency and then invest in the country. With no
hunting demikianakan currency of the country that economic conditions were
good, so under the laws ekomoni "if demand labih greater than the supply,
the prices of goods will go up" the value of its currency to be higher
dbandingkan value of another country's currency.
2.
Technical Analysis
In fact the incidence
of good and bad economic conditions of a country that repeatedly, and the
response to the good news and the bad is also repeated, then the existing data
we can predict the next event with the assumption that if the conditions are
the same as the past, the current results will be the same also with the
results of the past .That's technical analysis, which analyzes past data and
current data to predict what will happen in the future.
The basic theory is essential to understand before you actually
decide to become a TRADER. Good luck...!!!
