What is forex?
For most of us probably do not know about the forex sense. Forex usual manner could be interpreted as a form of currency trading is one country against the currencies of other countries. Impressive is now forex has become a very promising business field.
You were Wants to know more about forex, posting on occasion I will share reviews on the definition, benefits, and the perpetrators of the forex world which hopefully can be a useful extra info for you all. Forex usual words we say it comes from the words Foreign Exchange, which means foreign currency exchange.
This means that here we redeem the amount of money in one currency into an amount of money in another currency. Forex trading is an activity that involves two currencies of different countries as the object of such trade. Deeper in the process of buying and selling the currency there is the role of the existing major financial markets around the world and lasts for 24 hours a day, respectively.
In turnover, the global forex or forex market will start from the state of New Zealand and Australia, which occurred at 05:00 to 14:00. Turnover will then move towards the west towards the Asian markets which took place at 07:00 to 16:00, followed by the European market at 1:00 p.m. to 22:00, and the last is the American market at 20:30 to 10:30. After the American market is over, the rotation will return to New Zealand and Australian markets, and so on.
Performers In Forex Market
In the forex market is certainly there were several parties involved and influence in it or the term as a player in that market. Players forex market can be divided into 6 as follows:
1. Forex Bank
Banks play an important role in the forex market. In this case, the technical term interbank money market (interbank). Interbank itself serves to meet nearly all the needs of the buying and selling as well as currency movements in the field of global business. In performing its functions sometimes the bank will make the process of buying and selling currencies on behalf of its customers. But in large quantities, then the transaction will be carried out on behalf of the bank itself.
Interbank itself is also used by the forex broker to gain an advantage in selling and purchasing forex directly. From there a forex broker can get a little advantage. But this time, the system used interbank electronic system has been developed with a more effective and efficient.
2. Business Needs
Forex trader second is the need of companies or businesses when making payments using foreign currencies. Basically, a business sometimes requires funding in the form of foreign currency when making transactions, but actually not too feel its direct impact on the state of a currency.
3. Central Bank
Central Bank in this case has a role in controlling the money supply, inflation and is also associated with interest rates. With a very important role, the Central Bank could easily affect the forex market developments.
One of the advantages of the Central Bank of a country is only by making intervention alone is enough to create turmoil on the state of the forex market or foreign exchange. This is due to the concerns with the actions of the Central Bank could raise or lower interest rate currencies. Then a little more continuity of the currency market is determined by the gestures of the Central Bank in the country.
4. Investment Management Company
Generally Investment Management Company who play in the forex market does not make this business as a major source of revenue especially as the pace of speculation. The company is a regular body that manages several funds such as pension funds or donations from foundations.
5. Hedge funds
Next is hedge funds. Hedge funds are a company that is playing in the forex market as speculators. The funds them loose capital is truly maximized in the forex market, there is no other reason for them except to benefit greatly from such activities.
What is surprising is Hedge funds have the ability to develop large even have the ability to affect currency values better than the Central Bank. If it happens to be very difficult to move the value of the currency is good because it is under the control of a cooperative that is oriented at an advantage.
6. Forex broker
The latter is a forex broker. Until recently, the forex broker is still the third most widely sipped profit from the forex market. Basically, a forex broker can be individuals, groups or corporations who have to work together between customers / buyers with sellers of foreign currency.
Their forex broker is very helpful for forex business people or commonly called forex trading. But not infrequently, forex brokerage firms are not responsible for the fake alias instead become the most costly especially for new players in the forex business.
Functions presence Forex Market
In the process, forex has several major functions are very influential to the perpetrators. The function of forex is divided into three as follows:
1. The first function is to facilitate the process of exchange. As we know, in the course of economic activity in everyday situations people sometimes need the funds in the form of another country's currency. whether it's used in business, travel, shopping or storage.
Currency exchange can be done with a system called Clearing. one of the functions of the forex itself is providing these services. For simplicity, examples of such services is the currency exchange service you normally encounter in various places, ranging from banks to money exchange counters in various places.
2. The second function is to conduct hedging. Hedging in the Indonesian language is also called hedging. This is a measure commonly performed by a foreign exchange trader as a "guarantee" that the value of the investment fund does not decrease or loss when he sells currency at two different markets. In this case also the role of banks, both domestic banks and foreign banks are also the US as the guarantor of the funds.
3. The third function is to conduct arbitration. Arbitration is essentially the difference in interest rates of two different currencies. And the arbitration action is taken for the benefit of the difference of the currency itself. Simply put this action is done by buying a currency that is being undervalued in a country, and sell the currency in the countries where the value of the currency higher.
Forex Broker List
1. Master Forex
Master Forex Broker Forex is a broker from Russia, which in recent years is a lot of it has attracted attention from traders in Asia, including in Indonesia. Currently draws 150 thousand clients from all over the world, Broker is keen to expand in Indonesia by opening a lot of offices / IB. Website: MasterForex MasterForex Broker Registration. Support: Metatrader, EA, Hegding, Scalping, No Swap.
Min Deposit: $ 1, Micro, Standart, ECN and CFD, Spread 3 Pips, Lot 0.01, 1: 500 leverage. Payments: Liberty Reserve, WebMoney, Bank Local. Regulator: Local, CRRMFM / Russia. Popularity: Popular in Indonesia with the number of IB and Representatives. Promotions: Bonus Jackpot of Each Lot. Recommendation: Suitable for beginning level / medium with a capital of up to $ 10,000.
Forex Broker Saxo Bank is at the same bank forex brokers are very popular in Europe, based in the Swiss state. Regulator: Europe. Support Metatrader 4 and 5, Browser, Android. Deposit or Withdrawal: Wire Transfer. Highly recommended for those who want to trade with a capital of over $ 10,000 $ -100,000.
Agea Forex broker is a forex broker forex broker Marketiva alteration results, since April 2012 Marketiva turned into Agea with new faces and new application features. Broker is already popular among traders since 2003 and arguably the first and oldest brokers who participated instrumental in making the booming online forex trading. Until now still exist and still entice new traders.
Forex Broker FBS very popular since approximately 2010. The major advantage of this forex broker is a very simple menu systems that are easy administration. Similarly, the selection of a deposit or withdrawal is very fast, as well as the scheme is already integrated partner program. Disadvantages that this broker is hard find information on the headquarters / operations on his official website.
Forex broker InstaForex is one of the fastest growing forex broker in Asia. Was founded in 2007 in the Russian state and until recently has been serving customers spread across 50 countries, and more than 500,000 clients trader. InstaForex broker offers ease of opening an account, deposit, withdrawal. As well as often hold a variety of contests that never stops. In addition, factors other than the number of facilities more innovative trading. Broker InstaForex often offer a 30% bonus on every deposit.