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What is Forex Trading and How Does It Works? Analysis For beginners.

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Aug 21, 2020 02:19 pm
#1
Lena4030 User

Antworten: 41
Member since: 14/04/2020

Hi,

If you are a new trader then you must need to know what is real forex trading and how it's work? You must need to know what is Forex Brokers? Because Forex Brokers is related to your Forex trading success. So, Here are some analysis for you.

What is a Forex and How does it work?
Foreign exchange market, Forex or FX is a global decentralized or over-the-counter market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world. The main participants in this market are the larger international banks. Financial centers around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market works through financial institutions and operates on several levels. Behind the scenes, banks turn to a smaller number of financial firms known as dealers, who are involved in large quantities of foreign exchange trading. Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the interbank market. Trades between foreign exchange dealers can be very large, involving hundreds of millions of dollars. Trading from 22:00 GMT on Sunday (Sydney) until 22:00 GMT Friday (New York).
According to the Bank for International Settlements, the preliminary global results from the 2019 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity show that trading in foreign exchange markets averaged $6.6 trillion per day in April 2019. This is up from $5.1 trillion in April 2016. Measured by value, foreign exchange swaps were traded more than any other instrument in April 2019, at $3.2 trillion per day, followed by spot trading at $2 trillion.


What is a Forex Broker and How does it work?
There are 3 types of forex brokers:
ECN Broker
MM broker
STP broker
ECN means Electronic Communications Network (it is a network) Within this network the broker collects the prices of several liquidity providers such as banks, or financial institutions and always selects the best prices to offer them to its customers. Broker ECN offers real market conditions offering its customers the possibility of operating under the same conditions as banks and other large companies. Spread are lower offering Market Makers or STP brokers. There are no conflicts of interest with its customers. Transactions in ECN are performed as instant execution, that is, without any delay.
Market Maker are the brokers that create their own markets and conditions, which means that prices do not enter directly from banks etc. Virtually every 1 of 3 brokers is Market Maker. They offer spreads a little higher than ECN or STP.
STP is by Straight Trough Processing. They work more or less like ECN, sending all transactions directly to the market. STP brokers always increase the spreads offered by liquidity providers and this is their benefit. There are no conflicts of interest with its customers. STP brokers offer to carry out transactions as Instant execution, without any delay. Operations always go to the foreign exchange market, liquidity providers, banks or financial institutions. For more about Forex trading visit here.

https://www.forexprotect.com/forex-trading-for-beginners-1.html

I Hope this Post will helpful for Beginners.

Thank you.

Aug 24, 2020 11:36 am
Asher User

Antworten: 275
Member since: 31/03/2020

One key to trading is consistency. All traders have lost money, but if you maintain a positive edge, you have a better chance of coming out on top. Educating yourself and creating a trading plan is good, but the real test is sticking to that plan through patience and discipline.

Jul 07, 2021 11:39 am
Lena4030 User

Antworten: 41
Member since: 14/04/2020

yes o agreee wth you

[aww]

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