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What is Forex Trading?

Monday, December 12, 2016

Forex trading or forex transactions, means Exchange
or trade the currency of one eye
money is another. Each currency has a value of its own-
own compared with the value of the currency of the country
another, called the exchange rate or currency exchange rates.
Therefore the forex transactions are always carried out by the two currencies
(pairing). For example the Rupiah (IDR) and USD. While the book
It was written with a value equivalent to USD Rp 9,300. Iadi to
buy 1 USD you need Rp 9,300. To buy 100 USD you need to spend Rp 930,000, Benchmarking
with foreign currency is necessary for business transactions
untar the country.

The value of the currency on the market regime of State
free is always changing, up and down, in line with the power
the economy of the country. Take the example of Indonesia, in
1998 before the economic crisis hit, 1 USD equivalent
RP 2,300. But after the economic crisis and occuring disorder
social and political, the rupiah weakened so as to obtain
1 USD "we need Rp 15,000 provides up to that time.
Indonesia's economy began to Time now stable, in 2000
to the top the rupiah tends to be strengthened, so that 1 USD equivalent
with Rp 9,000-Rp 10,000. 4
Changing the value of the currency, we can
gain from Exchange rate changes between the
both of these currencies.
For example in 1998 you buy 100 USD with
money USD 230,000, Then you save it. When You
sold it in 2009, 1 USD = Rp 9,900, bera1fti
You will get Rp 990,000. Your Advantage Rp
760,000. Here you have benefited from the strengthening of the
USD/weakening rupiah. This is an extreme example of the transaction
foreign currencies, due to the fact the currency values are always
changing every second. So you ' can also mernbeli forex
at this time, and then sell them direct 1 second later.
This has resulted in the currency market is very dynamic.

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