10. Market players

                                                   












Now that we know the general structure of the Forex market, let's go into a little deeper to find out who these people are exactly in Forex him. It is necessary for you to understand the nature of the spot forex market and who are the key players.
1. The big banks (super):
Because there is no centralized in the forex market, the big banks are determined by the currency exchange rate based on supply and demand. It is these banks Bank (Barclays Capital) and Bank (Deutsche Bank) and












 Bank (Citigroup).
2. big businesses:
Companies participating in the foreign exchange market for the purpose of doing business. For example the company (Apple) US Dollar exchange Japanese yen for the purchase of spare parts for electronic products from Japan. These companies deal with the commercial banks in their dealings.
3. governments and central banks:
And regularly participates governments and central banks, such as the European Central Bank and the Bank of England and the Fed, in the forex market as well. Just like companies, national governments participating in the forex market operations, international trade and payments, and to deal with its foreign exchange reserves.
At the same time, central banks affect the foreign exchange market when adjusting interest rates to control inflation. By doing this, they can affect the appreciation of the currency.
4. speculators:
They represent nearly 90% of the total trading volume and speculators them a lot of money or a few of them and all aspire to massive wealth

9. Forex market structure

                                                          9. Forex market structure        
















What we knew of before he can not control the forex market and the prices, and this is what makes there is competition between traders. And also it can trade from anywhere.
Forex ladder
Despite the centrality of the forex market, it is not chaos. It can organize participants in the foreign exchange
market to peace. In order to understand better to see clarification elegant:



In the top of the ladder find that the market between the major banks in the world and some small banks are involved in this trade through electronic brokerage services (EBS) company or Reuters Dealing 3000-Spot Matching.
Competition between large companies such as competition between Coke and Pepsi Each of them trying to get the bulk of the market.
For platform (EBS) for trading the EUR / USD, USD / JPY, EUR / JPY, EUR / CHF, and USD / CHF and either Reuters Dealing platform 3000 It has GBP / USD, EUR / GBP, USD / CAD, AUD / USD, and NZD / USD
Then comes next in the peace capital funds and retail companies.
In the lower part comes retailers and small traders

8. futures Vs. Forex

                                                                            8. futures Vs. Forex















We had told you in the previous lesson why the forex market for the shares and features will now share with you some of the advantages of Forex futures contracts.

Cash

In the forex market, it is trading $ 4 trillion a day, making it the largest and most liquid market in the world. Market where futures are traded meager $ 30 billion per day.

Market 24 hours

We learned in the previous lesson that forex be full throughout the day either futures do not.

Price certainty

Forex when you want to sell, it shows you the current price or the certainty of making the implementation of the deal immediately bought either the futures market is like the stock you are relying on a broker to carry out orders, so the current price is not a certainty and a bit late for the market.

Risk Management

The trader must maintain his capital from loss and loss So in the forex market in the case of the loss will be closed automatically if the transaction amount exceeds the margin. As in the futures could yellows account or lose the biggest part of it

7. Forex Vs. Share

                                                                   7. Forex Vs. Share
                                 


                                                                   


There are approximately 4,500 stocks listed on the New York Stock Exchange. 3500 and also on the Nasdaq.

Foreign currency exchange, there are dozens of currencies traded, but the majority of speculators trading in the four major pairs. It is not 4 pairs much easier to trade thousands of shares?

This is one of the many advantages of the Forex market on the stock markets. And there's more:

Market 24 hours

Forex market is a seamless 24-hour market. The market is open from Sunday at 4:00 pm EST until Friday at 4:00 pm EDT, with customer service are usually 24/7. With the ability to trade through the United States, Asia, and European market, and you can customize your trading schedule.

Execute commands directly

Transactions are executed on the spot under normal market conditions. Price usually appears when you implement this request is the price you get.

A short sale without a slight increase

Unlike the stock market, there is no restriction on short selling in the currency market. In the currency market regardless of whether the transaction is long or short-term business opportunities.

No intermediaries

This is one of the problems of the stock market is the involvement of the mediator where the mediator must all engage in this process and it costs more money unlike the forex market where direct confrontation with the market, without interference from anyone

6. characteristics of the forex market

There are many benefits and advantages of Forex Trading. We will show you some of the reasons why a lot of people are choosing this market:

No commissions

No fees for Mqashla fee for the exchange, no government fees, no fees for brokerage firms. Most brokers are compensated by Alasebred teams.

There is no mediator

So that you can trade directly in the market for any pair.

Low transaction costs

The cost of retail transactions (spreads buy / sell) is usually less than 0.1% under normal market conditions.




                                                                     6. characteristics of the forex market


Market 24 hours

There is a time when the open currency market, unlike the stock market, so you can trade at any time on the day (Monday to Friday).

Lack of control in the market

No one that controls the foreign currency market and prices, not even the central bank.

Leverage (Leverage)

In Forex trading, a small deposit can control much larger than the total value of the contract. Leverage gives the trader the ability to make good profits and at the same time preserve capital to a minimum.

For example, at any brokerage firm forex trading provides a 50 to 1 leverage, which means that the dollar margin deposit of $ 50 enables a trader to buy or sell $ 2,500 worth of currencies.

Demo accounts (demo)

It provides forex brokers online demo accounts (demo) for the exercise of trade and building your skills, along with the forex news and real-time graphs and services. This is free of charge.

In the next lesson we will know how it compares to the forex market with stock market

5. liquidity in the market

                                                                      5. liquidity in the market     
Forex because of the finest ways to invest There are several different ways of investment and bilateral trade such as Forex, options, futures and investment funds.

Spot market

In the spot market, currencies are traded immediately or "on the spot", using the current market price. What is wonderful about this market is its simplicity, liquidity, and low Alasebred and processes ongoing around the clock. It is very easy to participate in this market where they can open accounts with as little as $ 25.

Futures

Futures are contracts to buy or sell one asset at a specified price at a future date (and this is why they are called futures!). It was created by the Chicago Mercantile Exchange (CME) in 1972.

Binary Options

It is a financial instrument that gives the buyer the right or the option, but not the obligation, to buy or sell one asset at a specified price on the validity of the option expiration date. If the trader "sold" option, you will have to buy it or sell one asset at a specified price at the expiry date.

ETFs

ETFs are the youngest members of the forex world. Can contain a group of stocks along with some currencies It is not Mvvetohh 24 hours

4. liquidity in the market

4. liquidity in the market

Lee Unlike other financial markets such as New York Stock Exchange, the Forex market has no physical location or centers for the exchange of currencies.

Forex market is a market between banks is due because the market is functioning within the entire electronic network of banks, continuously over a 24 hour period. This means that the Forex market is widespread throughout the year with the lack of a central location.

The chart below shows the ten most actively traded currencies.

The US Dollar is the most traded currency, with a rate of 84.9% of all transactions. The euro's share of second place with 39.1%, while the yen is third at 19.0%

The US dollar is king

You've probably noticed how often we keep mentioning the US dollar (USD). If USD is half of each pair of major currencies, including 75% of all transactions, so we can say that "the dollar is king

According to the International Monetary Fund that includes the US Dollar 62% of official foreign exchange reserves, because almost all investors, and businesses, the central bank care about the dollar much attention

There are other reasons for the attention of the US dollar:

The US economy is the largest economy in the world

The US dollar is the reserve currency of the world

The United States Dahaokpr financial markets and most liquid in the world

The United States has a stable political system

The United States is the world's superpower militarily

The US Dollar is a way to exchange transactions.

The US Dollar is a way to exchange transactions across the country's borders, for example, that oil is priced in dollars