How traded currencies in forex?

The FX market to buy and sell currencies so as to profit from the differences between exchange rates.

This is done through properly regulated broker to operate in this market.

How traded currencies in Forex?

Currencies are traded in pairs, for example
EUR / USD (euro against the dollar)

USD / JPY (dollar against the yen)

GPB / USD (Pound against the dollar)

USD / CHF (dollar against the Swiss franc).

The first currency is called "base", while the second is known as the "counterparty".

A interbank level, always think in terms of the price of the base currency. For example, if you buy EUR / USD you are buying euros and selling dollars.

That is the equivalence relation with dollars it costs to buy these euros.

For example: The EUR / USD: 1.45

It means that every euro that payment buys dollars 1.45.

To purchase a $ 1.45 euro need.

When the EUR / USD reached 1.50 ie uptrend my euro worth 1.50 dollars.

So if I sell my euro to buy $ 1.45 worth him now I will have earned $ 1.50 and $ 0.50 for each euro that I possess.

But keep in mind that the positions do not vary hundredths cents but for example:

EUR / USD: 1.4510 to 1.4527 The difference is $ 0.0017 per euro. (17 pips) in the case of 100: 1 leverage

Equivalent to 17% return in one operation.

If we have entered 5000 euros buying the gain it is $ 850 or $ s.

But what happens with the broker: the leveraged money 1: 100

Enter the market with capital 100 times or $ s 500000 leveraged my money broker.

The broker lent me $ 500,000 to account to enter the market gained 17% of the money they pay me less than u $ s 850 to pay me for my operation he won broker or $ s 84150

It can operate multiple currency pairs simultaneously.

Automated systems allow operation up to 20 currency pairs at a time.

You can use various leverages 2: 1 10: 1 20: 1 50: 1100: 1 1000: 1 depending on the broker to manage risk

There is no minimum dwell time, you can withdraw at any time.

You can choose the limit of loss and gain:

stop loss and take profit: the system so that if the trend of rising or low is not met the transaction will close automatically placing the maximum deviation that is to tolerate is configured.

If not set loss limits loss reaches the limit of money that is operating the operation and was never close due to the broker.

In a physical Forex currency exchange is performed. This function physico-the change is carried out banks and exchange houses specialized in change and currency conversions.