Basic Introduction to Forex (Foreign Exchange)

Basic Introduction to Forex (Foreign Exchange)

Forex , do you want to know how to predict the movement of a country’s currency value? if your answer is YES then at this time you are in the right place. Because many of your friends have come here to learn about what forex is and how to make money from the forex trading business. But before speaking further, you should know that the word ForEx comes from Foreign Exchange or it can also be called the term foreign exchange. If you have ever exchanged dollars with rupiah, then you are actually doing forex transactions.
In the basic introduction to forex tutorial you will be taught how the economic principles of a country are able to move the value of currencies and how you are able to take advantage of the momentum of the movement into an opportunity to gain profit not only when you are a forex trader but also as a businessman.

Here is one example of the basis of forex in terms of weakness and strengthening of other currencies. There was a news that there was a famous convection company in 1998 bankrupt due to the strengthening of the dollar against the rupiah. And the value of this strengthening is very high, around 350.52% and this incident occurs in the event of an economic crisis in Indonesia or a crisis of confidence to zero so that the rupiah which closed at IDR. 4,850 / US dollar in 1997 slid rapidly to the level around IDR 17,000 / US dollar on January 22, 1998.

Why is a convection company bankrupt ? because the company has debt in US dollars . If in 1996 we assumed that the convection company had a debt of $ 100,000.00 (IDR. 485,000,000) then how much would the company have to pay if the debt was due in 1998 ? can be calculated, which is approximately IDR. 1,700,000,000, – or more than 3 (three) times the original debt if it is converted . So we can know that when we have debt in the form of dollars and when the dollar has strengthened, we can be sure that our debt will increase.

But this will be different if you have savings in US dollars in 1996, say $ 30,000.00. (IDR 145,500,000, -) and you want to exchange it in rupiah, the amount of profit in the form of rupiah can be calculated because your savings will increase by as much as (IDR 510,000,000) in rupiah if the exchange is made in 1998 And we need to know together that very few people who can be lucky like this are lucky in the midst of economic chaos. And when you exchange the dollar to the rupiah or vice versa you are actually running forex and if this activity is done repeatedly, then you are running a forex trading business.

Well, if we are a businessman and want to have debt, especially debt in the form of dollars, then at least we must be able to predict how the condition of the exchange rate of the dollar against the rupiah. Why does this need to be done ? none other so that we don’t have the same fate as the convection company . And how can we predict this exchange rate ? We can use fundamental analysis and technical analysis to do this . And we don’t need to worry because these two analyzes can be studied by anyone.

If my advice is even better if we don’t have debt, especially in the form of dollars when running a business. So it makes you sleepy ….

But if you have no debt but have a dollar or other foreign currency then you can exchange it and make a profit. And currency exchange activities like this are called the ForEx (Foreign Exchange).And if we are able to predict currency movements well, it is likely that we will be able to get greater profit opportunities, of course, to do forecast activities such as this, we need fundamental analysis assistance and technical analysis .

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