What is Forex Foreign Exchange ?

Foreign exchange trading is also FOREX (= Foreign Exchange) called it applies to the Forex
Exchange rate market place, where two parties two currencies on the basis of an agreed
Exchange rate change. FOREX is an OTC market. (Over The Counter: The trade will not
an organized market (stock market) but instead is free trade between the two parties
executed. This previously established contract principles apply.)

Currency trading has no real commercial center, but is based on a global Banking network, the concurrent transactions on all continents, around the clock on every Day of the week makes. The liquidity, accuracy and security of transactions are supported by the participating Parties guarantees, in which all the leading international banking groups are included. It are no official market prices, but trade is a leading provider of online
Information systems (Reuters, Bloomberg) above, then this immediately globally available
. Make The DAB bank offers you currently 50 currency pairs, which are updated in real time.
The Forex trading allows you to take advantage of leverage (margining): It is only a certain
Percentage of equity traded on the sum required. This percentage may be from a
List are selected starting from two percent.

This service can be a lever effect (leverage) to achieve the 5.000% can be achieved.
With foreign exchange trading can be long or short positions in relation to a particular
Exchange rate are discussed. In a long position you get a set amount of currency for the payment of a fixed second currency. Make a profit when the first currency should appreciate in relation to the second (Increases the rate of exchange). In contrast, results in a loss if the first currency in terms to the second depreciates (decreases the rate of exchange).
For example: If you buy euros at an exchange rate of 1.2800 (long position in a
EUR / USD exchange rate) achieved a profit if the price is higher than 1.2800. Is loss
if the price is lower than 1.2800.

In a short position is a sum of the fixed currency sales to a second to Yet. A profit when the value of the first currency with respect to the second currency falls So the first currency depreciates (the exchange rate is reduced as well). Otherwise, create a Loss. For example, if euro is sold at the exchange rate of 1.2800 (short position on the EUR / USD exchange rate) achieved a profit if the exchange rate is lower than 1.2800. A Loss occurs when the price is higher than 1.2800.

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