Forex Backtesting | Forex Bangladesh
What is Forex?
Forex is the acronym for "currency market", in addition to known as the Portuguese currency market. The currency is the financial aerate taking into account the largest dimension and the highest liquidity in the world, behind more than 4 billion dollars a day in personal ad movements. The size of the foreign dispute shout out is such that the trading volume of the additional York heap row does not even achieve 2% of those realized in the currency.
Currency pairs and squabble rate
In forex trading gone currency pairs (cryptomoedas and more). By analyzing the EUR / USD clash rate, you can look how many USD (listed or additional currency) you obsession to buy 1 EUR (base currency).
Therefore, if the row rate of the EUR / USD currency pair is 1.2356, this means that each euro can buy 1.2356 dollars.
If the exchange rate increases, it means that the base currency has strengthened neighboring the supplementary currency. If the squabble rate eventually decreases, it means the opposite.
The characteristics of the Forex or Forex market
- Liquidity: Because of the $ 5 billion that circulates daily, the foreign dispute publicize is considered the most liquid make known in the world. Basically, this means that you can purchase any currency whenever you want, as long as the shout from the rooftops is open.
- working and decentralized: the foreign difference of opinion shout out is a full of zip and decentralized market, meaning that any trader can invest anywhere in the world and, consequently, upset the price trend of a pair.
- 24/5 hours: A key factor that characterizes trading on the foreign argument shout out is the number of hours of operation; The foreign quarrel puff is open 24 hours a day, five on the go days a week, which makes it unquestionably attractive for many traders.
What are the factors that performance the foreign squabble market?
As currency transactions are immediate, the price of foreign quarrel is affected by the show of supply and request and, consequently, by speculation.
Thus, stability and the diplomatic and economic events, as capably as the monetary policy of the countries, are elements that portray the contributions.
- Shares of private and public economic agents. Financial institutions, governments and central banks in each country can directly show the price of a currency by adopting certain economic dealings and announcements. For example, a rise in immersion rates in the US Federal remoteness would growth the value of the US currency.
- Political, social and economic events. If Forex participants acknowledge that a social event, can shape the political, economic or natural strengthening or stop in a currency, they will change the puff price subsequently its operations that manage to pay for amend and demand for the currency concerned.
The more people say yes that a consistent trend is followed, the more it will piece of legislation present prices, as this will reflect make public sentiment.
Recent major comings and goings such as Brexit or the US elections directly and shortly influenced the value of currencies.
Reports of economic and social organizations. Debt analysis subsequent to the IMF, large loans from the EU or the health of the industry in a total country (especially the big powers), as competently as data on unemployment and inflation, still offer a more translucent vision of what might happen upon the markets and in the economy, so it furthermore has a rather accentuated weight below the currency.
What should I realize in the same way as I trade in the currency?
Forex Trading always involves trading in the manner of a currency pair. For example, if you think the pound sterling (GBP) will value against the dollar, you should purchase the GBP / USD currency pair.
If, upon the contrary, we expect a devaluation, that is to tell that the dollar will strengthen, he will have to sell the currency pair he has.
The first stroke is called the purchase position, which means that the trader wants to purchase the base currency (GBP) and sell the additional currency. In the second, the operator would log on a sales slant to sell the pound sterling (GBP), the base currency.
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