Currency trading can be done in more than one way today. Maybe you may know that it used to be done only in exchange offices and banks. But nowadays From VIOP to forex market You can earn money by buying and selling foreign currency from many places. Moreover, you have the opportunity to earn a higher profit from foreign currency trading in financial markets compared to banks and exchange offices.
What is Parity? What are the Types?
There is important information you need to know when it comes to currency trading, which is the best way to evaluate your savings. These are foreign currency trading learn the logic and deciding which market to trade in. If you are determined to trade foreign exchange, definitely learn these and start trading after you evaluate yourself well.
What is Foreign Exchange Trading?
Let us first clarify the question of what is foreign currency for those who do not know how much you know. Foreign currency; It is the concept used for the currencies of all countries outside their own country. If we say for our own country; Any currency other than Turkish lira is foreign currency for us. Trade is buying and selling. In this case, currency trading; refers to the purchase and sale of currencies.
It is possible to buy and sell currencies in parities. (What is parity?) In other words, two currencies should be valued mutually and transactions should be made on this value. Parities are formed in two ways. What comes into play here is the positioning for the currencies of the countries. In other words, major and minor currencies biçim mutual income, major or minor parities.
This distinction is determined according to the place of the countries in the economy. Major currencies seven of them. American Dollar (USD), Euro (EUR), British Pound (GBP), Japanese Yen (JPY), Swiss Franc (GHF), Australian Dollar (AUD), Canadian Dollar (CAD) as we can see. All currencies other than these minor It is called as. Determination of parities; if the major currencies come against each other, major parity occurs. A minor or major currency özgü met, minor parity occurs. You can also trade with these parities in the markets.
Where to Trade Foreign Exchange?
If you have the idea to make your investments in foreign currency, your market selection is very important. Although there are many places where you can do this trade, your earnings will be very small in some, and in others in short terms You can earn high profits. For this reason, you should choose the market where you will invest in foreign currency. In this context, let’s examine where you can trade foreign currency.
Exchange Offices or Jewelers
When you hear these two options, you may think of your grandparents. Because the foreign exchange transactions carried out here were quite famous in their time. But today they don’t offer any attractive opportunities. Especially your web Transition to new dimensions in the investment markets with the arrival of the company özgü reduced the volume of foreign exchange transactions made in these two institutions. The difficulty of physical purchases and storage, price options are extremely disadvantageous. For this reason, especially new generation investors do not prefer these institutions.
‘Foreign Exchange Trade’ in Banks
While banks previously only served corporate customers, they expanded their service network in line with the technological developments and the needs of individual customers. Thus, they offer their customers options in terms of currencies. You can make your purchases and sales on the accounts you open in banks. You need to open your accounts according to the currency in which you will trade. It is advantageous for you to make your foreign exchange transactions easily with the web banking application and to use daily deposit applications on your accounts. (See: What are deposits?) But I cannot say the same advantage regarding prices.
Banks’ prices are slightly different from düzgüsel market conditions. Prices here are for bank participants and the bank’s own supply and demand occurs according to. For this reason, your trade may not be very profitable. Also, opening an account for each currency you want reduces your variety in currencies. Prices of foreign currencies also vary between banks. It is not very possible for you to open an account in every bank and make transactions instantly, whichever is appropriate. For this reason, foreign currency trading is not preferred in banks.
‘Foreign Exchange Trade’ in the Stock Exchange
In the stock exchange, currency prices are determined by the supply and demand of the participants. In other words, this situation is more advantageous than the markets I have listed above. You must do your transactions within working hours. It özgü an institutional structure and different applications. Therefore, if you want to do your foreign exchange trade on the stock exchange, you must trainings about the market you should get. For your foreign currency investments, you must first determine long terms. Because short term purchases and sales it is risky. The reason for this is that the prices increase and the gain is made.
Different contracts that you can use in your foreign exchange transactions are to protect against price risks in parity. It is also an advantageous market in this regard. The parity options you can make your transactions are USD / TRY, EUR / TRY and EUR / USDis. The low variety is what makes the market disadvantageous.
‘Foreign Exchange Trading’ in Forex
Forex market özgü brought a new dimension to foreign exchange trading. Although it is old, it is a new market in our country. Looking at the advantages the market offers for investors, it is the most logical market to invest in among others. The ability to increase your savings, not only when rising, as in other markets earn while fallingcaused the investors’ preferences to change. Click to learn the rules of foreign exchange trading on the web with Forex.
Since Forex is a global market, its participants are also global. This shows that prices are determined at a global level. As such, we can see that the liquid market is being traded and there are no manipulations. Earning profits while prices are falling özgü paved the way for short-term investments. This leverage ratio When added, the volume of your transactions becomes high and the size of your earnings increases.
With forex 5/24 you can invest in foreign currency. This way you will see more prices. Because many countries in the market commercial centers özgü. The opening of one coincides with the closing of the other and progresses in the weekday cycle. The fact that the market is global özgü also caused the parities in it to be too many. Within this variety of transactions, you can perform whatever parity you want to invest.
How to Trade Foreign Exchange?
How you do foreign exchange trading is as important as in which market you do. You must determine the direction of the prices in your investment. For these you will use analysis methods you must learn and use on your currencies. The ability to use analysis requires you to have information about the factors that will affect the parities. What currency you invest in, social and political You must have information about their situation. Likewise, you should have information about the opposite foreign currency country. Considering the relationships between them, you comment on the levels of the prices that will occur.
Global events and economic changes is also gaining importance. Interest rates, inflation, imports and exports will help you with these issues. You should keep track of these and examine their effects on your parity. Besides, it is important that you take initiatives to reduce the risks in the market. Thus, you will be successful in your foreign currency investments.
What Should Be Considered When Trading Foreign Exchange?
You see or hear phrases such as the dollar rose, the euro fell, the Turkish lira appreciated, from the news, the economy pages of newspapers or from your circle. This situation increases your interest in foreign currencies and you start to think about how you can make use of your savings in foreign currency. That’s when you currency trading You will find it while doing research. Actually, it is not a very foreign subject to you. You know more or less about foreign currencies.
Maybe you may even have been trading foreign currency in some way. You have made a payment in foreign currency; or buying and selling If you have, you have been involved in this trade. If you are seriously interested in foreign exchange trading, you must have detailed knowledge. Because the knowledge of how and where to carry out your trade is very important.
I guess most of you think of exchange offices, jewelers or banks. Few people may also be coming from the stock market and forex. Yes, it is possible to be able to trade this trade in all these markets. But what matters is which one offers you advantages and is profitable. At this point you need to learn, are the characteristics of the markets. You can do your research and decide which one is more profitable for you.
What Should I Do to Use My Savings in Dollars?
If you want to be a successful foreign exchange investor, you must you must know them well. So you must know the properties of the dollar and what conditions it is affected by. If you learn how the dollar reacts to what events, your job will be much easier. Because you have information about what direction the exchange rate will move and you will take a position accordingly. When the situation happens, you take your profit.
One of the most important points to be considered in foreign exchange trading is to follow the market. Even if this transaction differs according to the market you will be doing, you should definitely follow the level they have reached. At the same time, interpret the news that will cause volatility by following macroeconomic data. If you have knowledge of analysis, use them to determine which direction they will move in the future. This is how you can get much better results from the positions you create.
