Forex (or forex) can simply be interpreted as a market, where players perform currency exchange transactions.
Forex trading is trading currencies from different countries. Forex is short for Foreign Exchange, while Forex is an abbreviation of Foreign Exchange. stock market
Then what is the difference between the forex market and a money changer that is usually found in shops and shop houses? In fact there is not much difference between the two, because the transactions carried out remain the same, namely the exchange of a type of currency with other currencies (for example between Rupiah / IDR with US Dollar / USD)
Whether in a money changer transaction or in the forex market, the buyer will compare the lowest selling price and the highest purchase price between one seller and another. fibonnaci
In money changer transactions, it is usually driven by the need to travel abroad where someone needs to exchange their money for transactions in the destination country.
The difference is, in the mechanism of transactions at the money changer, transactions are generally carried out at the counter money changer, whereas in forex trading, traders do not need to go to the money changer counter, because all is done through an electronic network (internet).
Another difference is its main purpose, where in forex trading is more intended to reap the benefits of speculation of certain currency price movements.
Traders will buy if a currency is considered to have reached a point that is cheap enough to buy, and sell it when the price of the currency is considered to be quite expensive.
This leads to the absence of physical currency exchange between traders with one another, in other words forex transactions can be done by anyone. candlestick
Why: Why translate Forex?
There are several main reasons why someone invests in forex instruments. Forex is indeed a type of instrument that attracts the attention of many parties, both investors and the public in general. The following is the uniqueness of forex compared to other investment instruments:
1 Very high level of liquidity
Compared to other paper assets such as stocks, bonds and options, the level of forex liquidity (daily turnover) is much higher, which can reach US $ 5 trillion per day (equivalent to Rp.66,500 trillion).
This liquidity factor is very important where with high levels of liquidity it is very possible for transactions to occur at any time. In other words, if you want to sell, then almost certainly there will always be someone who wants to buy.
This is different from instruments such as stocks and bonds which are highly dependent on the company that issued the shares, the forex market is more dependent on global macroeconomic factors and the micro-economy of the country concerned.
2 Trade costs are relatively small
Another striking difference from forex trading is the absence of a particular stock exchange institution that regulates it, so trading costs are lower. In general, forex traders will be charged a spread (the difference between the purchase price and the selling price) or commission.
This spread varies depending on the broker who wears a variable or fixed spread system. Traders are only subject to spread when opening a position, and are not charged when closing a position. moving avaredge
3 Advantages when prices rise and fall
Other forex uniqueness is that traders can reap the benefits both when prices rise, and when prices go down.
In every forex transaction always involves exchanging between one currency and another currency, and no standard rules of a currency can only be exchanged for a particular currency. This is the uniqueness of forex transactions.
When: When is Forex Trading Time?
In forex trading, because the exchanged instruments are international currencies, and trading on a global scale, the Forex market is open almost 24 hours a day for 5 working days a week.
The forex market starts Monday at 8:00 a.m. in Australia / New Zealand (Monday morning 4:00 a.m.) until Friday at 17:00 p.m. Eastern US zone (4:00 p.m. WIB).
With an open market and can be accessed 24 hours x 5 days, gives traders the advantage to make transactions at the desired time. forex trading
The advantage of this operating hour is the flexibility of time for traders who may have to move during working hours. But the drawback is that if you are not online, the price keeps moving beyond your monitoring.
Who: Who is the Forex Transaction Actor?
Actors of forex transactions in the world are divided into 3 groups:
1 Institutional Group
What is meant by the institution here is the big players who generally are government institutions and big banks.
The main objective of these big players is for trading purposes
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