Around the world, daily currency trading on the exchange. Let's try to figure out what it is, what their essence is and what are the features of transactions.
What are currency trades?
This concept speaks for itself. Bidding is the trading of currency pairs on an exchange. The definition itself presupposes the presence of an independent transaction organizer, in which the exchange acts. Due to this, there is no need for the seller to negotiate with the buyer. Each party puts forward its requirements and terms of the transaction. If the conditions are the same, the deal is automatically reduced. This not only guarantees safety, but also greatly simplifies the process.
Foreign exchange trading provides the market with a continuous cash flow, for a day this turnover can be up to $ 2 million. Every sector foreign exchange market It has institutions whose function is to take care of price unity. The currency exchange was created so that there were no jumps in the national currency.
Foreign exchange trading is carried out in the form of an auction, where the current rate is determined by the broker. Bidding may be carried out taking into account the exchange rates of monetary units of previous auctions or with orientation to the Central Bank rate.
If a visitor to the exchange has a desire to independently participate in such a thing as the MICEX currency trading, but there is no possibility, then you can contact a credit broker and take a loan.
What is a similar organization?
Exchange - an element of the currency market that provides services for the organization and conduct of trading. As a result, participants make transactions with foreign money.
Currency exchange is a platform that provides an opportunity for the purchase and sale of money, based on the ratio of rates between them - quotes - which are added based on supply / demand. The exchange may be attended by brokers, traders and brokers.
The purchased or sold monetary unit is called traded, and the employee used to evaluate this unit is called the quote currency. For example, in the USD / RUB pair, the dollar will be tradable, and the ruble will be the quote currency.
Exchange objectives:
- activation of frozen state capital;
- revealing the national and foreign exchange rates in the market.
When is the exchange trading held?
Money trading is carried out around the clock. However, experienced participants prefer to make transactions in active periods when you can get on the most profitable currency pairs.
For example, take the largest exchanges - Tokyo, New York and London. At the moment before the opening of the Tokyo stock exchange, but after the closure in New York (this is usually 17-19 hours) - the London Stock Exchange’s operating time, there will be much less opportunities for profitable transactions.
To trade the EUR / GBP or CHF / USD currency pairs with profit, you need to be in the period of 8-12 hours, when the exchanges of America and Europe are open for transactions.
The main currencies of international scale are the US dollar, euro, Japanese yen, Swiss franc, and British pound. There is another unit that is traded only in electronic form - this is bitcoin.
