Forex (FX) is the market in which currencies are traded. The forex market is the largest, most liquid market in the world, with average traded values that can be trillions of dollars per day. AHL Forex provides trading in foreign exchange (FX, Forex), futures, contract for difference (CFD) on major indices and commodities and precious metals such as gold, silver and crude oil. It includes all of the currencies in the world. There is no central marketplace for currency exchange; trade is conducted over the counter (OTC). The forex market is open 24 hours a day, five days a week, except for holidays, and currencies are traded worldwide among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. The forex is the largest market in the world in terms of the total cash value traded, and any person, firm or bank in any country may participate in this market. The market participants are commercial companies, central banks, foreign exchange fixing, investment management firms, retail foreign exchange traders, non-bank foreign exchange companies, hedge funds, insurance campanies, individual investors.
Forex Market has been legal since 31.08.2011 in Turkey. Forex Market regulated and controlled by Capital Markets Board of Turkey (CMB).
How do you trede in Forex Market?
Investor, Who thinks the dollar prise will go up he/she can invest in forex market and he/she can take long (buy) position in USD/TRY parity. The lot size form to standardised according to leverage in forex market. For investor to transact 1 Lot; If USD/TRY parity amount is 2,80 TRY levels above the example investor must paid/credit $1,000 margin and this amount equal to 2800 TL.
1000X2,80= 2,800 TL
Market Hours: (5/24 Trading)
There is no waiting for the opening bell. From the Monday morning opening in Australia to the afternoon close in New York, the Forex market never sleeps. This is very convenient for those who want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or at night.
Leverage – Trading on Margin:
In Forex trading, a small deposit can control a much larger total contract value. Leverage gives the trader the ability to make significant profits while at the same time keeping the risk capital to a minimum. For example, if you trade with 100:1 leverage, it means that a 100 EUR margin deposit would enable a trader to buy or sell 10,000 EUR worth of currencies. Similarly, with 500 EUR, one could trade with 50,000 EUR and so on. However, leverage can also be a double-edged sword as without proper risk management, this high degree of leverage can lead to large losses as well as gains.
No One Can Corner The Market
The foreign exchange market is so huge and has so many participants that no single entity can control the market price for an extended period of time.
As the largest markets in the world, the cash forex markets offer excellent liquidity at all hours of the trading day, unlike many other 24-hour markets. This means you can trade large amounts of volume into and out of the forex markets with minimal market impact.
This means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will as there will usually be someone in the market willing to take the other side of your trade and thus you are never stuck in a trade. You can even set your online trading platform to automatically close your position once your desired profit level (a limit order) has been reached, and/or close a trade if a trade is going against you (a stop loss order).
In addition to technical trading, the forex markets offer unique opportunities to trade fundamental changes in economies around the world. Economic changes and developments that directly affect the currency pairs are tracked through a monthly calendar of events occurring in major countries around the world. Most of the fundamental developments in the major economies have sharp impacts on the markets during the release of data and drive longer-term trends. Among the economic indicators that affect the markets are GDP, employment rates, and interest rates.
Two Way of trade opportunities
The real market investors can gain if prices are increase / appreciate but in the forex market gains are two way. Investors can sell / short position if parity, CFD or emtia product will depreciate or investors can buy / long position if parity, CFD or emtia product will appreciate.
Types of Orders
Market Order: A market order is executed immediately when placed. It is priced using the current spot, or market price.
Limit Entry Order
A limit entry is an order placed to either buy below the market or sell above the market at a certain price.
A stop-entry order is an order placed to buy above the market or sell below the market at a certain price.
A stop-loss order is a type of order linked to a trade for the purpose of preventing additional losses if price goes against you. REMEMBER THIS TYPE OF ORDER. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order.
A take-profit order automatically closes an open order when the exchange rate reaches the specified threshold.