Forex Beginner

The Forex is a money market. So there is no defined place like stock exchanges (Paris, New York stock exchanges). The Forex is a continuous flux of exchanges between the banks all over the world. These data exchanges enable to make the currencies of all the countries fluctuate.

The brokers on the Forex receive flux of a bank and allow thanks to a trading platform, private investors to accede the exchange market.

The market makers receive flux from several banks; they then create their own flux in order to enable the investors to speculate on the exchange market. These investors speculate on the Forex via 2 main analyses: the fundamental analyses and the graphic analyses.

The currencies fluctuate 24h/24 and 7 days/7 (most of the brokers and market makers don’t allow to trade on the week end because the volatility on the exchange market is very low). The weaker variation on parity is 1 pip.

We call exchange rate the exchange price between two currencies. For the exchange rate EUR/USD, if the exchange rate is 1.2850, when you change 1 euro in dollars, you’ll have 1.2850 dollars.