The main players in Forex
Access to Forex has become much less restricted with the arrival of online brokers. These currency market specialists have made it possible for individuals of all types to speculate on changes in exchange rates. In addition to the intermediaries that can be chosen, there are various other players in this market:
By controlling the volume of currency in circulation in each country central banks will act on the fluctuation in the exchange rate of the local currency relative to a reference currency. The monetary policy of these banks creates a sense of security or instability prompting investors and dealers to speculate on the rise or fall.
These banks historically represent the final go-betweens for other market players.
They operate in Forex when they want to pay a foreign supplier or collect a payment in another currency.
Private investment funds:
Investment funds are placed on the currency market as all or part of the capital that their clients have entrusted them to invest and grow. The foreign exchange market is one of the most important financial markets in the world. Billions of dollars of foreign currency are exchanged every day.
MAKING PROFITS WITH FOREX
The advantages of Forex:
MAKING PROFITS WITH FOREX The advantages of Forex:
• A sole go-between
A broker is the only intermediary between the client and the market. This organization effectively excludes any additional costs associated to commissions, be it sales or account management.
Very modest transaction charges
These are made from the difference between a buy price and a sell price offered by a broker. In general, the transaction amount does not matter, as long as it does not exceed ten euros.
• Easily accessible predictive information
Statistics, graphics, real-time analysis tools are provided by brokers and the media to help investors make the right decisions.
Instant access via the Internet
At any time and on any media (PC, tablet, Smartphone, …), you can consult an account on a Forex platform. So it becomes easy to check positions or make new transactions on the currency market.
Speculating on the increases and decreases
As currencies rarely follow the same trend for long, investors can take advantage of earning opportunities on both the increases and decreases.
BICFX offers investors the option to process transactions 24/24 from Sunday to Friday and position themselves in a market that exchanges more than 3000 billion dollars of currency per day.
I’M BENEFITING FROM THE LEVERAGE EFFECT
What is the leverage effect?
This is a technique offered by brokers, to make speculative transactions on the currency market without the need to advance the full amount of the transaction.
For example, if you decide to invest €15 with a leverage effect of 100, your minimum investment would be 15 x 100 = €1500. The earnings capacity would be considerably increased.
The broker assesses the most appropriate leverage to a given transaction but it is always the client that makes the decision whether or not to follow the broker’s recommendations after analysing the potential gains and losses.
The advantage of the leverage effect
The leverage effect on Forex provides a great advantage. You get a significant return on investment.
The earning capacity with the leverage effect is unlimited when the risk of loss is limited to the initial investment amount.
The rules to know when starting out on Forex
1- When opening your account with your broker, you will decide the amount of your initial investment, also known as “initial margin”.
2 – To avoid Forex investors losing more than they actually have in their account, brokers routinely ask their clients to make a deposit, guaranteeing payment for any losses. In the event that the guarantee is not paid, also known as the “margin call”, the broker has the right to suspend any pending transaction.
3- It is recommended to use moderate leverage to give you time to become familiar with indicators around different transactions.
Largely self-governing, Forex allows individuals to speculate with moderate intake while using leverage to maximize gains.