I'm going to share with you intelligent ways to learn foreign exchange trading. This is a great market to get involved in since there are over $3 trillion in trades everyday. It can be very exciting for the first time to trade in this because it's probably your first step you've taken to become financially independent.
What is the "fed"?
"Fed" is just short for Federal Reserve, which is the central bank in the United States. You should pay particular attention to the fed, along with other central banks in other countries. These banks control the supply of money in an economy and inevitably, the price of currency because of supply and demand. The fed will do primary things to do this; raise interest rates or cut interest rates.
Raising interest rates makes the credit market less appealing to people. This means less people are going to get loans, which means less money enters the economy. When the supply isn't going up that much, that means the price of it will.
Cutting interest rates makes the credit market more appealing to people. This means more people are going to get loans, which means more money enters the economy. This means the supply goes up, therefore price goes down.
How important is economic news?
Very important. Economic news is what holds up a currency. The price of currency follows supply and demand, but at the end of the day, it's just a piece of paper. The value that this piece of paper is based on the economic foundation in the country, so watching this news is important. If things don't look good a currency will go down and vice versa. You need to pay particular attention to GDP, unemployment rates and consumer spending. These are all indications of a how well the economy is doing.
What is the "fed"?
"Fed" is just short for Federal Reserve, which is the central bank in the United States. You should pay particular attention to the fed, along with other central banks in other countries. These banks control the supply of money in an economy and inevitably, the price of currency because of supply and demand. The fed will do primary things to do this; raise interest rates or cut interest rates.
Raising interest rates makes the credit market less appealing to people. This means less people are going to get loans, which means less money enters the economy. When the supply isn't going up that much, that means the price of it will.
Cutting interest rates makes the credit market more appealing to people. This means more people are going to get loans, which means more money enters the economy. This means the supply goes up, therefore price goes down.
How important is economic news?
Very important. Economic news is what holds up a currency. The price of currency follows supply and demand, but at the end of the day, it's just a piece of paper. The value that this piece of paper is based on the economic foundation in the country, so watching this news is important. If things don't look good a currency will go down and vice versa. You need to pay particular attention to GDP, unemployment rates and consumer spending. These are all indications of a how well the economy is doing.