Jump to content

Theodore Michelson

  • Posts

  • Joined

  • Last visited

Everything posted by Theodore Michelson

  1. Hello, thank you for your question! Token as a term represents a median of some other currency which is used on special occasions, in crypto word this means that token is a cryptocurrency built upon a blockchain. Every cryptocurrency has a specific type of blockchain which varies in usage, interaction, and business model. Tokens are classified into two different types which are security and utility tokens. Security tokens are similar to shares as they draw their value from the external tradable assets; these tokens are susceptible to government regulations that control their production and usage. On the other hand, utility tokens aren’t similar to any traditional asset. They act as a passkey for a shareholder which grants them access on any further investment, product, or service. As they aren’t clearly defined by law, they are rarely susceptible to any regulations. Tokens nowadays are used in many different occasions, but most commonly as: Payment between different parties who accept to use it as a currency Digital asset ownership (real estate, products, company shares Accounting for digital actions Reward to participants in a network Ensuring network protection Installing a gateway to extra services Providing a better user experience The future of tokens is unpredictable, many experts see tokens as an asset that will replace real-world currencies, while others predict a not so bright future.
  2. Hello, thank you for asking! Forex reserves are assets held by countries in order to ensure liabilities and influence monetary policies. These reserves are in the form of foreign currencies, rather than domestic ones. These assets are held in a central bank, such as the U.S. Federal Reserve. These assets come in form of banknotes, deposits, bonds, or treasury bills, and are held on to by the government in order to ensure the stability of their own currency, or in cases of emergency, where their domestic currency rapidly devalues or becomes obsolete. The most common currency which is held in reserve is the U.S. dollar, as it is the most traded currency in the world, there are occasions where governments keep a reserve of the British pound, euro, or the Japanese Yen, as these currencies are stable as well, and rarely suffer from devaluation. Countries such as China, Saudi Arabia, and Russia hold a significant amount of federal reserves, usually in the dollar, but Russia keeps some part of it in gold, these countries do this for several reasons, in order to commit trade easier, prevent the downfall from oil devaluation, or economic downfall as such.
  3. Hi, I would like to learn what is a Crypto blockchain?
  4. Hi, I would like to learn how to read Forex charts.
  5. Hello, thank you for asking! Forex market experiences a high turnover of traders, as there is a big number of new traders that enter the market with their capital, but there is also a high number of traders that incur losses and are forced to leave Forex trading because of it. In order to avoid losing money in Forex, it is necessary to take some steps in precaution. First, always do your homework in order to lower the risk of losses to a minimum. It is necessary to do research on the market. This means keeping track of new economic regulations, changing market conditions, and world events. All of these bear significant impact on Forex markets and their currencies. The second step is finding a good broker, which can be found through well-renowned companies that offer their services, you should also check the broker’s history with the regulatory bodies in your country, in order to make sure that a certain broker hasn’t committed some sort of fraud. You can do some practice trading through a practice account, which allows you to place hypothetical trades, and see their outcomes, which can additionally prepare you for the placement of the real trades. It is also important to properly use technical analysis, while using it you should refrain from using all of its components in order to avoid over cluttering of the charts, which may confuse you, and lead you to place negative trades.
  6. Hello, I would like to learn how to trade on the Forex market?
  7. Hello, thank you for asking! Forex pairs work as currency pairs, where the value of one currency is compared against the value of another currency. The former is called the base currency, while the latter is known as the quote currency. In these pairs, it is indicated how much of the second, or quote currency, is needed to buy the first one - the base currency. They are identified by their ISO code, which consists of three letters and represents them in the Forex currency trading world. For instance, USD is the code for the U.S. dollar, etc. Their trading is conducted in the foreign exchange market, or Forex, which is arguably the largest trading market due to its high liquidity. It allows traders to buy, sell, exchange, and speculate on currencies, and their values. It is open 24 hours a day, 5 days a week. All Forex trades involve buying or selling of a specific currency, when you buy the currency pair, you buy the base currency and sell the quote one. On another side, when you sell, you sell the base currency and buy the quote currency. The most popular currency pair is EUR/USD, which sees the highest trading volume in Forex, other notable currency pairs are USD/JPY, GBP/USD, USD/CHF, AUD/USD, NZD/USD, and USD/CAD. The last three currency pairs are known as commodity currencies, as both countries (Australia, New Zealand, and Canada) trade a lot in commodities, and are affected by their prices.
  8. Hello, I would like to know why Forex markets work 24/7?
  9. HI, thank you for asking! The amount required to start Forex trading differs from a broker to broker, and from market to market. Usually, the smallest amount is from $50 to $200, but these markets are highly competitive and bear larger risks with them.
  10. Hello, thank you for asking! The forex market is open from 22:00 BST on Sunday until 22:00 BST on Friday. Due to the overlapping time zones, there is always at least one Forex market open, depending on the time zone and the part of the world you live in. This is done in order to enable traders from all parts of the world to participate in real-time trading, despite their time zone and geographical location. Usually, markets start opening from Australia through Europe ending with North America. In some specific hours Forex markets in these time zones overlap, and during these periods, traders are most active, due to the high activity of trading in Forex. When the London and New York time zones overlap in trading, that is when the most trading is done, which amounts in the sum around $6 trillion.
  • Create New...