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Forex Trading

The game on the Forex exchange. What is wrong in this statement? Virtually everything. Firstly, Forex is not a stock exchange and it is not regulated by standard stock exchange rules. This is the largest international market for interbank currency exchange. Its daily turnover is more than 6 trillion dollars. Secondly, do all Forex market players really play on it? Not at all. After all, we are talking about very significant amounts, so the game as such with an unpredictable result would make this market meaningless. Rather, it is the daily planned work of millions of people and organizations who are interested in obtaining concrete results from operations with financial instruments.

So where does the expression “Forex game” come from? Indeed, in the XVI-XIX centuries, the work of a trader or broker was like a game with unpredictable results. Confidently, it was possible to earn only commission from the transaction in the interests of the seller or buyer. Understanding the pricing of a particular product, stock or other instruments on the stock market formed chaotically. Therefore, if someone wanted to make money on the sale of goods or securities on the exchange, then he was playing.

First, Japanese rice traders came up with a systematic study of the patterns of the exchange market, who came up with the Keisen method or the analysis of displaying prices in the form of Japanese candles. At the end of the 19th century, the American journalist Charles Dow published a series of articles in which the postulates of stock price behavior over time were actually formulated. At the beginning of the 20th century, the theory of price behavior on the stock market was finally formulated by William Hamilton, Robert Rhee, George Shefer and was given the modern name “The Dow Theory”.

Why is the “Forex game” still preserved?

The Forex market actually formed by the end of the 1970s. However, the term “gambling on the exchange” smoothly migrated to this market. Why so? For a long time, the foreign exchange market, in principle, was inaccessible to small players – private investors. Therefore, there was practically no serious need to popularize the Dow theory, the ideas of technical and fundamental analysis. Work on the stock exchange remained the lot of a narrow circle of people. In addition, the development of technical analysis was also difficult due to the lack of available computer technology. Its rapid development can be attributed to the end of the 80s – the beginning of the 90s of the XX century. It was then that the introduction of computers made it possible to quickly test mathematical methods on a long history of pricing of certain financial assets.

Interest in the market from private investors has increased interest in the theory of analysis of prices for financial assets. The rapid development of technology has allowed the use of technical analysis almost everywhere. The number of small players in the market has grown rapidly. There was a need for educational courses.

It is over the past 30 years that the “Forex game” has transformed into a work that involves an exclusively professional approach to market analysis. However, the term “Forex market players” or financial market players has been preserved. However, now it more likely characterizes market participants and is widely used by the media.

Play or work on Forex?

It all depends on the goals that the trader or investor sets for himself when entering the market. The main goal is to make a profit. And that means playing in the Forex market in the understanding of gambling, like in a casino, you should forget and give preference to analytical work.

It is for this that training in market work, the identification of patterns in the movement of prices and independent practical work on the application of the knowledge gained are needed.

All tags

Total 87 materials
  • Forex Indicators (56)
  • # Forex Strategies (36)
  • # Earnings on Forex (35)
  • # Practical Forex (23)
  • # Forex for beginners (19)
  • # Forex for dummies (16)
  • # Technical analysis (11)
  • #Trading (6)
  • # History of world currencies (5)
  • # Forex Brokers (2)
  • # Fundamental analysis (2)
  • #CFD (1)

To conclude a framework agreement, the client is obliged to confirm that he is familiar with the following risks associated with the conclusion, execution and termination of obligations under the framework and individual agreements:

1. The risk of loss to an individual as a result of changes in foreign exchange rates (currency risk).

2. The risk of loss to an individual as a result of non-performance, untimely performance or incomplete performance by the Forex dealer and (or) the bank in which the Forex dealer account is opened, financial obligations to such an individual in accordance with the terms of the Agreement and Separate Agreements (credit risk )

3. The risk of loss to an individual as a result of a violation of applicable law and (or) internal documents of a Forex dealer by employees of a Forex dealer, a malfunction (failure) of software and hardware of a Forex dealer and (or) individual, a mismatch of software and hardware of a forex dealer to the nature and volume of transactions it conducts, transactions by a third party on behalf of an individual as a result of receipt by such a person randomly or as a result of his deliberate actions of unauthorized access to the possibility of making such transactions on behalf of an individual, carrying out operations by an individual that are not in accordance with his intentions, for reasons related to insufficient experience of working with this individual with software and hardware of a forex dealer and (or) making it random actions, as well as the result of external events (operational risk).

Contracts or financial instruments proposed for conclusion are highly risky and may lead to the loss of the deposited funds in full. Before making transactions, you should familiarize yourself with the risks associated with them.

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  • FOREX FOR BEGINNERS
    • How to make money on Forex
    • What is a forex exchange?
    • Trading is a 21st Century Profession
    • How can a beginner make money on Forex?
    • Pivot Points
    • RSI indicator
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