Forex today is almost on everyone’s lips, and everyone has heard about it, but not everyone knows what it is. This is an abbreviation consisting of Foreign Exchange Operations, which means “canned foreign exchange transactions”. Such operations make up a large part of the entire financial market. Securities have an income of 300 billion dollars, and Forex triple this figure. In 1973, the EU countries adopted a resolution on the refusal of a stable exchange rate, and after that the type of foreign exchange market that we see now has formed.
Of course, the main market leader is the dollar, followed by the pound, euro, franc and yen. Forex is not the market that seems to be heard the first time about it. It has no place to trade, since everything happens with the help of a phone or terminal. The work is done by the market around the clock and all week. At any time, there is someone who wants to sell the currency, and you need not to miss this moment, so this market works continuously. Read more about Forex earnings here:
Forex has one huge plus, as they use the principle of margin trading. The client is given the so-called leverage, which in terms of finances exceeds his own by 50, or even 100 times. This allows you to make transactions even not very well-held customers. The market is attended by quite different offices, companies and firms. The price is set here based on the actions of large states. Factors influencing market development are politics and economics.
A lot of transactions turn out to be a little unprofitable, and teders can receive only about 40% of the profit. Therefore, luck is very important here. Many participants act almost blindly or at random choosing sources for transactions. You can get rich in this market only under the condition that the number of profitable trades will be more than unprofitable. And from this it turns out that you need to draw up transactions very often in order to achieve the desired result. Before making any transaction, the planned profit is displayed, then it is balanced with a possible loss. The ratio in this case becomes as 3: 1. Profit in any case should be higher than loss, even potential.
Almost all of the taders establish a probability factor. For you, the definition of profit and loss should not be the most important, since they should be multiplied by a percentage probability coefficient. Thus, a tader can not only evaluate the possible profit, but also translate it all into a percentage ratio.