FOREX: How To Play In The Foreign Exchange Market To Make Money (OTAKRAM) - The currency market is a global financial market in which participants speculate on the direction of a currency pair. Investors who try to make trading money currency markets tend to use either fundamental analysis or technical analysis to determine the future of a currency pair direction.
FOREX: How To Play In The Foreign Exchange Market To Make Money

 The basic

 The Forex market trades 24 hours a day, six days a week, across all the time zones. The values that are used to operate in the foreign exchange markets are currency pairs. A currency pair is the relative relationship between the currencies of the two countries. For example, the pair of currencies USD/JPY is the relationship between the U.S. dollar and the Japanese yen. This currency pair is quoted in yen to the dollar, and moves higher as the dollar strengthens against the yen.
Fundamental analysis

 Investors can use a number of techniques to determine the future of a currency pair direction. One of the most popular techniques is fundamental analysis, which consists of the study of monetary policy of each currency and economic data that reflects a country's economic growth. Robust economic publications reflect an economy that is growing, which in turn creates increasing interest rates, making the currency of the country strong. Soft economic publications generally agree with the decrease of interest rates, which in turn create a weak currency. For example, a version of the stronger than expected in the U.S. gross domestic product would result in an increase in demand for dollars.
Technical analysis

 Many investors believe that all information that is currently available around a currency pair as it is built into the price. With this in mind, many investors remain historical stock prices to determine the future movement of a currency pair. Technical analysis encompasses the use of specific patterns to determine future price behavior to studying momentum and moving averages to detect the direction of a trend. For example, when a short term average of a currency pair moves exceeds an average long term of a currency pair moves, the currency pair is said that it is in an uptrend.
Leverage

 Many Forex brokers provide significant leverage, which helps to generate a higher return. Leverage can work against an investor, since the losses can accumulate quickly. Leverage can be as high as 100 to 1, which means that $100 can be provided for every $1 is used to perform a Forex trading transactions. Investors should use strong risk management techniques to ensure the preservation of capital.