how is forex made ?

The Forex is not just a platform through which investors know the interbank prices of several global markets or central banks. Whoever makes this type of transaction has access to the best market prices and can take advantage of fluctuations. “Suppose the dollar is higher, for example, because the interest rates in the United Kingdom rose after ten years, in this scenario we analyze this news and we could invest in pounds sterling or buy dollars in sterling.” and we are gaining everything that the currency loses, “explains Granada.To realize this movement, three key concepts must be considered: The first is that of parities: this is the confrontation between currencies, one that is the base and another in the They are negotiated, which indicates the relationship between the two currencies, that is, what of a It must be delivered to receive a unit of the other currency. The next concept is the intermediario: esta es una instituciĆ³n financiera o instituciĆ³n que
organizes transactions between a buyer and a seller. It is
also important to execute the movements, since it is the unit that opens the
doors to the currency market. Anyone with $ 100 can enter their money. In the
case of Forex, this provides an operating platform where you can see the
graphs, read news and track the transactions of your transaction. “The
broker gives him the technology with which he can trade, and he earns a small
commission called the margin,” says Granada. And here we come to the third
concept that must be taken into account when entering the world of Forex. The
differential is the difference between the purchase value and the sale value of
a currency. This amount is given to the broker for each transaction made. It
depends a lot on whether the person wants to make short-term, five-minute or
one-hour transactions. For these cases, you should spend a lot of time looking
at the screen, for example, to know when it should go, “explains Granada,
in contrast, if the movements are delayed by a week, you may have an hour a
day. spend time, it’s a job, and you can not invest and leave things without a
follow-up, “says Granada.

 

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