What is FOREX
FOREX, English abbreviation of Foreign Exchange words.
Turkish Currency install them in time (Buy / Sell or Trade) means.
Foreign Exchange, foreign exchange is a process of mutually determined price trading conditions are the same all over the world, 24 hours is a process that can be done the world's largest financial market. Called on the Forex market without the sun, the giant banks are located in the Interbank spot foreign exchange market.
Key Currencies:
EUR Euro
U.S. Dollar USD then
The CAD Canada Dollars
GBP Great Britain Pound
The Japanese Yen JPY
The Australian Dollar AUD
The CHF Swiss Franc
Forex Words in Turkish instead of 'Parities' use the word. Spread the word came from foreign languages, though has also Türkçe'mize and 'Currency Pair "means. Forex (parity), the name also implies, of one currency to another is the ratio. For example, USD / TRY can tell: USD's (of the U.S. dollar), to YTL (New to TL) is the ratio. So, is essentially a division operation. As in every division operation, not in the top than the one in the lower value increases, the increase in the parity (the upward move) means. If this splitting process, the more valued than the one in the upper bottom, this reduction in the parity (the downward move) means.
This means that an increase or a decrease in parity, in fact, is one currency against another rise. The increase in parity (in this example) USD 's rise against YTL; decrease in parity, YTL against the USD to rise. Therefore, in the direction of the buying and selling orders can be comfortable, position can be retrieved.
Example
Today, USD / TRY: 1.4000, while tomorrow:
a) USD / TRY: If parity increased and 1.4200 USD, has gained value against YTL.
b) USD / TRY: If parity increased and 1.3800 YTL, has gained value against the USD.
Why is Var Needs?
Countries, especially economic and political reasons, depending on geography and even then is in the ecological reasons, even vary the purchase value of the money we all know today.
This value changes of the country, institutions and individuals to an environment can be judged in terms of reconciliation are needed. Even more importantly, this value changes in a world of rapidly rotating every hour, every minute, every second, or even could be. Therefore, all institutions (central banks, country treasures, large and small business organizations, individuals) based on supply and demand needs of a market that is natural.
Who Uses (Exhibitors)
Currency in the hands of the registered bank system in the Exchange to ensure everyone who wants can use these markets. Everyone would like to, but in essence these markets and the international interbank market because, due to Money Laundering law, in this sense can be controlled in detail.
Market Participants is:
A-People or customers;
Who need foreign currency savings or individuals for the purpose of change needs to exchange for cash, as well as importers and exporters, or sell their goods and services, they agree on their money through a foreign currency exchange shop they need. They have taken to hedge foreign exchange risk or profit in order to secure the draw that current operations can.
B-Commercial banks;
Banks, customers, other banks, brokerage organizations, central banks and treasury and foreign exchange transactions of mutual do, serve their customers in order to buying and selling services, such as place can set their own foreign currency position to manage and profit in order to provide foreign exchange transactions are made.
C-car agencies;
Customers face in the market simultaneously allows for the realization of the process by bringing, in return for their transactions will receive a slight difference in sales commissions or exercise, the spread of the market and provide depth.
D-Funds;
Banks, brokerage houses, insurance companies, fund management companies have set up their high-volume and reliability of funds due to the depth of the foreign exchange market volume of transactions does it.
E-Central banks;
Objectives of price stability, central banks that they are applied according to the course of the economy with tight or loose monetary policy can influence foreign exchange markets strong. Also to create and liquidity reserves held in order to make transactions.
F-Treasury;
In order to close the budget deficit in the short and long-term foreign currency denominated financial assets, or exported from the central bank may charge. These features have played an active role in the secondary market.
Why will use
What is our idea of when buying and selling foreign exchange when? Of a currency against other currencies will gain or lose value in the act as you think. Our country for example:
1 American Dollar money £ 1,400,000. and we think that we cıkacağını lere 1,800,000 dollars, $ 1 per every 1,400,000 TL. giving dollars will buy. $ 10,000 to get 10.000x1.400.000 = £ 14,000,000,000. give in return. Considering the opposite, namely dollars TL. According to depreciate against the idea that we act, giving $ 10,000 in exchange for 14 billion TL. 'll buy. Now let's consider this for foreign currency because, TL. money dollar, euro and other foreign currency trading while the TL interest rates, inflation, alternative financial instruments in real terms getirilerinigöz when we take into our earnings are not even any harm to know what we'll realize.
By doing parity of foreign currency exchange gain of more opportunities to çalışmakiçin we may face. Example: TL 1,400,000 dollars., While the dollar value of Euro 1,800,000 Euro in our hands to think will win the money by selling the dollar yu would like to hear. Otherwise, we found that the euro appreciation will expectations in the euro money by selling dollars will buy. While these transactions of the banks or exchange of cabinets and even given different prices jeweler can be exposed. However, to move within a certain time zone, and both exchange zorundalığı also obliged to follow the individual can take advantage of our.
Here are all the forex markets in the world these challenges by removing all over the world with the same conditions to do is recognize the opportunity, Dev banking and intermediation, the central bank and the treasury is located inside the subject to strict controls, the deposit guarantee is located, no one is connected to the stock market from anywhere in the world at the same time process is able to allow interbank foreign exchange market.