Mechanism deals.

Purchases or sales made in relation to the base currency. For example, the purchase of a certain amount of USD/JPY means buying a specified amount of U.S. dollars with the simultaneous sale of Japanese yen equivalent amount. By contrast, sales of 1 million AUD/NZD means selling 1 million Australian dollars for the simultaneous buying NZ dollars for the appropriate amount for the course.

Major participants in the foreign exchange market transactions using special electronic system of direct dealing, for example REUTER’s Dealing, by which banks exchange suggestions on buying and selling and make deals. System, on the one hand, provides complete confidentiality of transactions, on the other — are stored in encrypted form and archived history of all transactions in the event of disputes. This system has a high cost, so not very large currency market participants do not always have the opportunity to use it. Trading may also be carried out by telex or telephone.

Trader actions in a simplified form lies in the fact that he gives the order to open or close a position. The order may be for buying and selling on the currency. For example, you choose a currency pair, where, in your opinion, the value of the base currency is on the rise. You give an order for the couple to buy a certain amount of the base currency and thus open a position (point A in the figure). When, in accordance with your expectations value of the base currency has grown enough, and wait for further growth should not, because of the danger of changing trends, you give an order to close a position, that is to sell the amount of base currency that you have purchased (point B in the figure) . In this case, your income is fixed: it will not increase and will not decrease due to changes in the course. While you are in the open position, you have the opportunity to observe the growth of earnings at a favorable trend, but both were at risk to go into loss due to change in the trend.


Orders trader may not only be immediate (executable dealer as soon as received), but deferred (executed under certain conditions.) Immediate orders are executed at the current market rate, which may change during the transmission of orders from the trader to the dealer. In this case, the dealer before you confirm the transaction, the trader said that the price has changed and asks you to confirm your intention to perform the same operation in the same volume, but the new price. Deferred disposition trader contain clear provisions concerning the exchange rate at which the trader intends to make a deal to buy or sell a specific amount of a particular currency, and executed automatically at the appropriate conditions.

Thus, in order to get started, you need to download the trading platform and read the instructions for its use.

To trade to open a trading account. On this account to deposit money (margin) that can be used directly for the trade, and as a guarantee for margin trading. Transactions on the basis of margin trading is very popular in the Forex market. Their peculiarity is this: for the transaction the customer can use the amounts in the tens and hundreds of times larger than the amount of funds that are at it on the deposit (trading using leverage). The client opens a position not to commit real money supply, and to subsequently close this position the inverse operation and profit. That is why in margin trading you can open a position not only to buy, but the sale of any currency, which can be different from the currency that is on your account.


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