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IQ Option Forex trading

10-08-2017, 15:13 13 902 Information

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Forex IQ Option

Forex is an innovative and modern product for advance because he already long time is known to extensive number of users and besides everything has a number of essential advantages in comparison with other financial instruments which allow to earn profit on own investments.

In essence, Forex is highly liquid market mechanism of tracking of various currency pairs which quickly reacts to macroeconomic and microeconomic news, events and regional state policy of the different countries. This trade tool is widely known worldwide. It became completely available also on IQ Option, by tradition having undergone several noticeable improvements.

Traders have a large number of advantages, carrying out trade on the IQ Option Forex platform, for example:

- News and the careful analysis of Forex in real time makes it more available for traders and opens a set of opportunities for trading improvement.

- Trade in the most liquid and demanded markets in the world.

- Profit according to the transaction isn't limited.

- The trader will never be able to lose more, than invested in one position (Protected CFD).

- The most attractive currency pairs.

- Trade is carried out round the clock, 5 days a week.

- Available shoulder 1:300.

- A free unlimited demo the account of 10 000 dollars of the USA/EUR depending on account currency.

- Low spreads.

What is Forex and as process of trade on Forex is carried out?

If you sometime happened to go to other state, then it is probable, you needed to exchange your money for currency of other country. In that case, you were already a participant in implementation of trade on Forex. Designation of the word "Forex" is a reduction from a phrase foreign exchange, i.e. "exchange of foreign currency". He is also called by "FX" and a currency exchange.

About trade on Forex simple words

As you understand, Forex trading – is a little more developed tool, than usual currency exchange for your holiday. The companies apply various world currencies to purchase of goods in other countries. To buy these goods, they need originally to receive local currency, the same way, as well as to us when we go to the holiday. The difference consists only that these companies carry out exchange of money in large volumes volumes.

In terms of the exchange of currencies worldwide, exchange rates constantly undergo changes. Sequence of work of such operations following:

Process of trade in currencies is very similar to exchange of money on a holiday.

When currencies exchange, everyone has determined price that forms an exchange rate. As well as in a case with any other goods, cost on currency is caused by the economic law of supply and demand.

In case on a certain currency the great demand is established – for example, many people or the companies will want to change currency of the country for euro, then the cost of euro will quickly grow, and the exchange rate, in relation to other currencies will change. You have an opportunity to use such principle and to get monetary profit. As an example, you need to remember about a trip to a holiday.

We will assume, you live in Europe and you go to the holiday to the United States. You need to exchange euro for US dollars. At exchange implementation you receive $1.40 for one euro. You change €500, therefore, you receive an equivalent in $700.

After two weeks you go home, but at you have $250. In case dollars aren't necessary to you any more, you change them back for euro.

At the same time you notice that euro price to dollar has changed – now the exchange rate makes $1.30 for one euro therefore you receive about €190. If the exchange rate remained at the level of $1.40, you would receive only €180. Thus, you have earned profit.

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