What is Foreign Exchange?
Forex or Foreign Exchange (FX) relates to the trading for one currency for another, mostly for the purpose of making a profit.Currency Pairs and Exchange Rate Currencies are traded in pairs. The exchange rate of a currency pair is the amount of the quoted currency you can buy for 1 unit of base currency.
For example, the most common and most traded currency pair is EURUSD. When looking at the exchange rate of the EURUSD, you wish to find out how many US Dollars (quoted currency) you can buy for 1 EUR (base currency). So if the exchange rate of the EURUSD currency pair is 1.2356, that means that for every €1, you can buy $1.2356. If the exchange rate is rising, it means that the quoted currency is getting stronger at the expense of the base currency. If the exchange rate is descending, it means that the base currency is getting stronger at the expense of the quoted currency.
The Forex Market
With approximately $4 trillion USD traded in the market every day, the forex market is the most liquid market in the world. Basically, this means that you can buy almost any currency you want at any time while the market is open. A key factor determining the characteristic of forex trading is its opening hours. The forex market is open 24 hours, 5 days a week. Its global nature, as trading starts in New Zealand, proceeding to Australia, Asia, Europe to follow and then the USA, allows trading of currencies any time of day or night, Monday to Friday.
What affects the Forex Market
There are various factors that affect the exchange rates in the foreign exchange market, such as political and economic stability, as well as monetary policy of countries. However, because forex transactions are immediate, it is speculation that mainly affects the price changes in the market. If traders speculate that due to a certain reason or event, a currency will strengthen or weaken, they will trade and change the price in the market, as supply and demand the relevant currency will change within the market. The more people will believe a certain trend will happen, the bigger effect it will have over the market prices.
What do I do when I trade forex?
When trading forex, you always trade a currency pair; i.e. you buy or sell one currency for another. If you, for example, speculate that the British Pound (GBP) will strengthen in comparison to the American Dollar, then you should buy of (remove of) the GBPUSD currency pair. If you speculate the opposite (that the American Dollar will get stronger), than you sell the currency pair. Thus, you can always take a position in the direction you assume the market is trending towards. This increases your trading opportunities.
Why Trade Forex with AvaTrade?
When trading forex you must be able to trade with confidence. No company can ever promise you earnings. But here at AvaTrade, we are committed to a set of values which define our relationship with our customers. Thus, we wish to provide you with the best trading education possible, offering top notch 24/5 multilingual customer service alongside the most advanced and user-friendly trading platforms and promise to constantly innovate for you. Open an online trading account and Join Ava –for the best trading experience you can get.
Ethereum (ETH)
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference. In the Ethereum protocol and blockchain there is a price for each operation. The general idea is, in order to have things transferred or executed by the network, you have to consume or burn Gas. The cryptocurrency is called Ether and is used to pay for computation time and for transaction fees.
If you want to earn block rewards from the network, you can join the network as a miner. The much easier but a bit more expensive way is to buy an Ethereum mining contract.
Ethereum is how the Internet was supposed to work. As long as you have enough funds to pay for your code to be run by the network, your contacts will always be up and running.
It was crowdfunded during August 2014 by fans all around the world. It is developed and maintained by ETHDEV with contributions from great minds across the globe. There is also an Ethereum foundation and there are multiple startups working with the Ethereum
blockchain.
If you are looking for a GUI interface for your wallet, try the Ethereum Wallet DApp.
The Ethereum Wallet is a gateway to decentralized applications on the Ethereum blockchain. It allows you to hold and secure ether and other crypto-assets built on Ethereum, as well as write, deploy and use smart contracts.
On traditional server architectures, every application has to set up its own servers that run their own code in isolated silos, making sharing of data hard.
If a single app is compromised or goes offline, many users and other apps are affected. On a blockchain, anyone can set up a node that replicates the necessary data for all nodes to reach an agreement and be compensated by users and app developers.
This allows user data to remain private and apps to be decentralized like the Internet was supposed to work.
Create a tradeable digital token that can be used as a currency, a representation of an asset, a virtual share, a proof of membership or anything at all. These tokens use a standard coin API, so your contract will be automatically compatible with any wallet, other contract or exchange also using this standard.
The total amount of tokens in circulation can be set to a simple fixed amount or fluctuate based on any programmed ruleset.
