Konstantin Nickitin - The Great Crash 2017

© Konstantin Victorovich Nickitin, 2016

ISBN 978-5-4483-4555-5

Created with intellectual publishing system Ridero

Mistakes in trade in the market Forex occur for the numerous reasons, but the most common causes of unsuccessful trade happen because of greed and desire to earn quickly. Traders who believed that it is possible to earn very quickly money at the financial exchange lost deposits very quickly. There is a lot of self-confident traders in the financial world, they a source of the income of clever traders. On the other hand, coverage by greed like epidemic increases, decreases together with rise and falling of market prices in the foreign exchange market. It is impossible to smooth fluctuations of the market by means of various the indicator, we have to look for the moments on the blank schedule. And it is much more difficult, but more effectively than to open transactions on signals of various indicators. Looking at the huge sums of money which start moving around financial believe that it is possible to be enriched in short terms in the financial markets, actually very few traders understand this mechanism of the change in price. The victims, whose trading accounts were nullified because of not knowledge of the mechanism of the market always in are in hope that in the following trade everything will turn out and they at last will earn a lot of money. Therefore any can come to a conclusion that ignorance of market mechanisms is inherent in participants of the market and without it the market will not exist. Only units manage to earn Forex from the market. For this purpose we have to learn to understand mechanisms to earn from the financial exchange.

The modern international market of a currency exchange which is better known under the reduced English name Forex (for exchange – valyutoobnenny) represents very difficult, multidimensional and even multystoried phenomenon. It the powerful and difficult regularities unknown to most of simple users and absolutely little-known even for, it seems, wave of successful experts on this market operate.

The matter is that initially this interbank market was created to simplify work of international trade. At emergence of the international payments constant need to exchange considerable volumes of currencies led to the fact that banks had to carry out long and difficult procedure of mutual examination and clearing in attempts to learn who has enough the necessary currency and who can sell it at more convenient price. Electronic general platforms on which banks provided on the one hand, the money (liquidity), and with another – own offers on an exchange of certain sums (quotation) were as a result created. As a result Forex worked approximately the same as works stock or any resource exchange is ordinary: the parties offer the prices and when the offer price and the buying price meet among themselves system automatically carries out matching – reduces the necessary volumes and performs operation between them. As a rule, it is made for fractions of a second – this process can be observed in a so-called “exchange glass” in which data on concrete the quotation of various participants of the market flow and it is visible how they are mutually closed.

However, there is a lot of such electronic platforms which are engaged in the organization of a meeting of big players of the financial market. At least 7 the largest of them define the person Forex today. Among them there are platforms of such giants as the Swiss bank Dukascopy, the most powerful electronic platform of an exchange (ECN – Electronic Communication Network) – Currenex and others. However, these platforms cannot serve small orders for trade. For them even several million dollars during an exchange are a small money which does not deserve attention. Therefore in order that smaller users got access to the market, brokers offer the services. Having received trade orders and money of a large number of users, they connect them in one “bunch” which volume of liquidity is already adequate to inquiries of ECN and send them for the real auction. Also undertake “razrulivaniye” of all questions of recalculation of data with ECN to the end user who has no millions, and there are only a few thousands of dollars.

Today the number of participants, as a rule, of any quantity is not limited to the bargaining. However if to speak in general, then Forex is completed with rather solid players. In most cases they consist of investment funds and banks of absolutely various level. Concerning natural persons and insignificant firms,

which have no rather impressive capital, implementation of the auction in such foreign exchange market as Forex, it is admissible only through intermediaries as whom the dealing centers and broker companies often act.

Today the foreign exchange market of Forex more is represented as the large-scale market united by the only communication network nobody sorts. Concerning directly activity, in general it is possible to tell that it is carried out each working day, since morning of Monday, and comes to an end Friday evening. At the same time the course of the trade is completely focused on all available participants of Forex, and as a rule, depends on time zones. In addition you should not forget also that several trading sessions are on average allocated. In particular it is such as European, Asian, American, Australian and New Zealand. At all this by right it is considered the most profitable European, and is among the most aggressive Asian and American, contrast to these two sessions is Australian and New Zealand.

Involvement of little players who have an opportunity to carry out sale and trade acts as the most important feature of the Forex market while the trader does not have a full volume of the necessary sum. In this case broker companies provide for them services of a land surveying, that is implementation of trade on means of the loan capital.

To use such service it is necessary to introduce the mortgage deposit. After that the person is given an opportunity implementation of the auction for the sum which exceeds the available sum for 40, and at times 100%. At the same time here all losses completely lay down on the client’s shoulders, and insurance of the deposit is carried out by means of the broker.

Concerning the main essence of work which moves the foreign exchange market of Forex, consists in capital flows between all available countries.

Generally, all above also is directly a basis of what influences direct formation of such market as Forex.

More precisely to understand such foreign exchange market as Forex first of all it is necessary to learn who is the main player in this sphere. In the presence of such knowledge, people has an opportunity to understand structure of it to the market much more precisely.

If to speak about direct participants, then as a rule today it is possible to allocate several those, namely these are different central banks of the states, commercial banks,

investment companies, broker companies and of course individuals. Let’s consider each available participant of Forex in more detail.

So, first of all we will pay attention directly to the central banks. As a rule, management of currency reserves, carrying out intervention with currency, and of course regulation of rates on percent which acts as the main function here

are put in national currency. In general it is possible to tell what the central banks has essential money and potential to carry out the movements of the market in a certain party.