What is Broker forex online: Understanding Broker forex online, Functions, and Doers In The Broker forex online Market
what-is-broker forex online
What is broker forex online? For most of us may not know much about the meaning of the word. Broker forex online in general can be interpreted as a form of buying and selling one country's currency against the currencies of other countries. Interestingly, today's broker forex online has become a very promising business field.
For those of you who want to know more about broker forex online, this article will provide a review of the understanding, function, and broker forex online world players who hopefully can be additional useful information for you.
Understanding Broker forex online
Broker forex online is basically a combination of 2 words in English that is "foreign" and "exchange". Foreign can mean "foreign" or "foreign" while Exchange can be interpreted as "exchange", in this case is meant is the exchange of currency. And when combined, broker forex online or foreign exchange can be interpreted as a foreign exchange activities.
In one of the Wikipedia pages explain that broker forex online in the Indonesian language is also known by some terms that is Broker forex online Market or Foreign Currency. Both terms have the same meaning that is a trading activity that involves two currencies from different countries as the object of the trade. Deeper in the process of buying and selling the currency there is a role of the major money markets that exist around the world and last for 24 hours a day in sequence.
In turn, globally broker forex online or broker forex online market will start from New Zealand and Australia which happened at 05.00-14.00 WIB. The rotation will then move west towards the Asian market which took place at 7:00 to 16:00 pm, the next European market at 13:00 to 22:00 pm, and the last is the American market at 20:30 to 10:30 pm. After the American market is over, the turnaround will return to New Zealand and Australia markets, and so on.
3. Central Bank
The Central Bank in this case has the role of controlling the supply of money, the occurrence of inflation and also associated with interest rates. With its very important role, the Central Bank could easily influence the development of the broker forex online market.
One of the advantages of a nation's Central Bank is simply to make interventions alone is enough to create turmoil on the state of the broker forex online market or foreign exchange. This is due to concerns with the actions of the Central Bank that can raise or lower interest rates. So a little more sustainability of the currency market is determined by the movement of the Central Bank in the country.
4. Investment Management Company
Generally Investment Management Companies that play in the broker forex online market does not make this effort as the main source of income especially as a step of speculation. The company is a body that regularly manages some funds such as pension funds or donation funds from the foundation. All the funds they use on the broker forex online market sometimes just "play" to get additional revenue for the company.
5. Hedge funds
Next is Hedge funds. Hedge funds is a company that does play in the broker forex online market as a speculator. The funds they release are actually maximized capital in the broker forex online market, there is no other reason for them except to get a big profit from the activity.
What is surprising is that Hedge funds have the ability to grow large and even have the ability to influence the value of the currency better than the Central Bank. If that happens it will be very difficult for the currency to move well because it is under the control of a corporation oriented to profit.
The Function of the Broker forex online Market
In the process, broker forex online has several major functions that are very influential to the perpetrators. The function of broker forex online is divided into 3 as follows:
# 1. The first function is to simplify the process of currency exchange. As we know, in the daily economic activities of human beings sometimes require funds in the form of currency of other countries. Whether it's used in business, travel, shopping or storage.
The currency exchange can be done with a system called Clearing. Well one of the functions of the broker forex online itself is to provide such services. For simplicity, examples of such services are foreign exchange services that you usually meet in various places, ranging from banks to exchange of money in various places.
# 2. The second function is to do Hedging. Hedging in Indonesian is also called hedging. This is an act that is usually done by a broker forex online trader as a "guarantee" that the value of investment funds is not reduced or loss when he sells broker forex online in 2 different markets. In this case also play the banks, both domestic banks and foreign banks as US guarantor funds.
# 3. The third function is to do the Arbitration. Arbitrage is basically the difference in interest rates of 2 different currencies. And arbitration is an act done to benefit from the difference in the currency itself. This is simply done by buying a currency that is low in value in a country, and selling the currency in a country where the currency is high.
Related Article: Broker forex online Broker Indonesia ~ The business potential is very promising
Performers In The Broker forex online Market
In the broker forex online market there are certainly some parties involved and give influence in it or the term as a player in the market. Broker forex online market players can be divided into 6 as follows:
1. Bank
Banks play an important role in the broker forex online market. In this case known the term Money Market Interbank (PUAB). PUAB itself plays a role to meet almost all the needs of the sale and purchase as well as currency rotation in the field of global business. In performing its functions sometimes the bank will make the process of buying and selling currency on behalf of its customers. But in large quantities, then the transaction will be done on behalf of the bank itself.
PUAB itself is also used by broker forex online brokers to benefit in bringing together broker forex online sellers and broker forex online buyers directly. From there broker forex online brokers can benefit not a bit. But now, the system used by PUAB has been developed with electronic system more effective and efficient.
2. Business Needs
The second broker forex online market is the needs of the company or business actor when making payments using foreign currency. Basically a business sometimes requires funds in the form of foreign currency when making transactions, but in fact the direct influence is not too felt on the state of a currency.
It will be different results when discussing a large corporation. Here large corporations have a large and unexpected share if they engage in massive foreign exchange moves. When they let go, the market or the speculators could not expect it directly. As a result, the value of a currency can move up or down.
6. Broker forex online Brokers / Brokers
The latter is a broker forex online broker. Until now, broker forex online brokers are still the most profitable from the broker forex online market. Basically broker forex online brokers can be individuals, groups or companies that have a job to bring together customers / buyers with foreign currency sellers.
The existence of broker forex online brokers are very helpful for broker forex online business or commonly referred to as broker forex online trading. But not infrequently also, broker forex online brokerage firms are not responsible false alias even become the most disadvantageous parties, especially for new players in the broker forex online business.
The following is a review of what the broker forex online, function, and the players in the broker forex online market. Hopefully it can be a useful additional knowledge. And in closing, here is a video about broker forex online that can be an additional reference for you.
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