The word FOREX derived from the Foreign Exchange. This foreign exchange transaction occur by bank2 around the world, continuously for 24 hours, five days a week and a half. Forex is also known as FX is the largest financial entity in the world with transactions exceeding $ 1.95 trillion a day!. Forex is a transaction where we buy one currency and selling of one currency to another. Currencies are traded in the form of pair (pair) for example British Pound to U.S. Dollar (GBP / USD).Forex was established in 1971 and grew continuously during the 1970s and become popular now.
Forex market needs to come from the need for exchange between countries, which in turn reflects the need to exchange currency. Currency prices determined by supply and demand. Supply and demand are the factors that determine the price in any market. When there are too many buyers and sellers, price volatility is higher and the market will become more dynamic. Prices will go up and down more frequently. When prices go up we buy, and when we sell it down and make a profit. Different from other markets that are subject to price manipulation, FX is too large to control an entity.
buying low and selling high or selling low and buying high, the base money in the Forex. The Major subject in FOREX is how to determine the time to buy, and how to identify that when to buy, the price upward and make a profit. This is the most important questions that make to become a successful trader.
There are two methods to determine the best time to buy and sell: technical and fundamental analysis.