latest estimates Faq for about Forex

latest estimates Faq for about Forex

December 27th, 2009 by admin

What is Forex?
Forex or Fx, English “Foreign Exchange” is an acronym formed from the word. Forex currencies of countries that has been received and sold mutually changed is a global financial market. Forex, is the world’s most advanced financial markets. All over the world in these markets to determine prices of foreign exchange.

Where is the Forex market?

Istanbul Stock Exchange and the New York Stock Exchange as financial markets as distinct from the other spot Forex market has no physical location or a center. Forex market an over the counter market (Over-the-Counter – OTC) or a “Break the Banks’ market. All inter-bank market participants with computers connected to each other if one is crying and the market is managed entirely with computers.
What is the Forex market transaction volume?

Forex market transaction volume in terms of the world’s largest financial market. Here, two and a half trillion daily trading volume and varies between 4.0 trillion dollars. However, the world’s largest stock exchange in New York Stock Exchange daily trading volume is around twenty billion dollars.
What should I do to be successful in the Forex market?

Expertise required for success in almost all the same ideas about the minimum components are:

* Good knowledge of technical training and must have a trading
* The main reason for the movement of the market and have a good grasp
* Psychological aspects of Trading should know better and must have a good psychological control and discipline.

Forex’te manipulation can be done?

Daily trading volume is too high because the Forex market is impossible to be manipulated.
How can I track the market?

Real-time graphics on our web site, or have presented to you by your brokerage trading platform through the real-time market watch.
Forex Markets Which days and is open between the hours?

Forex markets 24 hours a day on weekdays and every day operations are performed. With Turkey on Sunday night half-hour, the New Zealand market after the opening, respectively, Australia, Tokyo, Hong Kong, Singapore and Dubai markets opens. Morning hours from 08:00, closure of these countries’ markets in the European market, respectively, the opening hours do best. U.S. market with the opening hours of Turkey clock 15:30 stop. Our U.S. market with our night hours until 12:00 will be handled. Then again the New Zealand market opens. Friday night, off the U.S. market holiday enters Forex markets.

Foreign exchange market the vast majority of the data to give direction comes from the United States. Therefore, usually afternoon to the U.S. market with the opening of the movement in the market occurs.
Who are the participants of the Forex market?

Forex markets are the main participants, banks and car companies. Individual or institutional players in the market through broker companies can take action. Broker of its client companies trading will fulfill the request. For customers with large deposits at banks and brokerage houses of their own (Broker’lık) service can provide.
Do I have to constantly monitor the market?

Continuously monitor the market or not to follow completely your choice. Forex investors are setting their own working hours. 5 days, 24 hours per week in the Forex market transactions can be done. Investors in financial markets can continue with other business activities.
How much profit can I make?

Forex market more than you lose your stakes is not possible. However, your income will never be limited. The amount of gains or losses on investors’ ability, knowledge and experience to take depends on the risks.
You can earn money in the Forex market that you may lose money.
How much I have to pay taxes on forex earnings?

Arbitrage earnings are not subject to income tax at the moment. Future legislation on this issue in our country we expect to be.
Or all of my earnings any time Can I take my money?

Under control and who are working with a trusted intermediary institutions you want your money, all or a portion can withdraw at any time.
What currency transactions are made with Forex’te?

Most transactions in the currency, the currency thereof are used for abbreviations and pseudonyms are given below:
Icon Country Currency Nick Name
USD United States Dollar Buck
EUR Euro members Euro Fiber
JPY Japanese Yen Yen
GBP Great Britain Pound Cable
CHF Swiss Franc Swissy
Canadian Dollar CAD Canadian Loonie
Australian Dollar AUD Australian Aussie
NZD New Zealand New Zealand Dollar
Kiwi
What is a quotation?

Quotation, a foreign exchange market makers regarding the parity of the reported price is double. Within the first foreign exchange currency pairs Kotasyonda reported to the “base currency” (base), second in the “anti-foreign currency is called.

Kotasyonun EUR / USD was given for the Let’s think. In this case, euro-based currency, the U.S. currency against USD.

Prices have been declared Kotasyonda get 1.2750/55. Kotasyondaki the first price 1.2750, 1 unit from the base currency to make kotasyonu willing to pay is the amount of the anti-exchange. This price “purchase price” (bid price) is called. In our example, companies or institutions who kotasyonu then 1.2750 U.S. dollars in exchange for 1 Euro wants to buy. Kotasyondaki second price is 1.2750, making kotasyonu to sell foreign exchange from the base of 1 unit is willing to pay for is the amount of anti-foreign exchange. This price “sales price” (ask price) is called. In our example, which company or organization kotasyonu then 1.2755 U.S. dollars in exchange for 1 Euro wants to sell.
“Purchase Price”, “Sales Price”, “Bid”, “Ask” my terms are confused. Would you please explain these terms?

The players in this process according to the terms Forex’te not be interpreted according to established procedures, performs vehicle.

Purchase price (Bid): Tool that is the price your company willing to take. So we look to you, this is the price you can sell.

Selling price (Ask): Tool is the price of your company is willing to sell. So we look to you this is the price you can do exercises.

Tool your company EUR / USD kotasyonunun 1.2700 / 1.2702 Suppose. Purchase price (bid price) 1.2700, selling price (ask price) 1.2702 ‘dir. So in exchange for 1 U.S. dollars 1.2700 Euro 1.2702 U.S. dollars in exchange for selling and you can buy 1 Euro. The difference between buying and selling price “scissors” (spread) is called.

What does that mean cross-parity?

Of cross-parity (cross currency pairs) in Dollars are non-dual.

In the early days of forex trading, foreign currency exchange market only to institutions which would serve. All other currencies in the forex market the first day had to be converted to U.S. dollars. For example, the Japanese Yen, British Pound, you want to swap your money into dollars first and then convert Pound’a difficult. Now, without any direct U.S. $ GBP / JPY can take action on parity. Diagonal parity is becoming increasingly popular for Forex’te.
Forex markets are very popular among the cross-currency pairs EURGBP, EURJPY, GBPJPY, EURCHF can be considered. Because of the high correlation with oil CADJPY parity is a popular currency pairs.
Lot is
Forex markets are a LOT as a processing unit. Standard lot size is 100,000 units. 100,000 units are often abbreviated as 100K. Many brokerage firms under the name mini-lot a lot size of 10,000 units (10K) and micro-lot under the name of the 1000 unit lot size (1K) using. Some online brokerage firms can operate in different sizes can allow the lot to do with.
The parity of the USD as base currency direct $ 100,000 in 1 lot obtusa.
The parity of the currency against USD in 1 lot

100,000 * Rates

formula can be calculated.

For example, EUR / USD 1.2020, while parity 1 lot
100000 * 1.2020 = 120,200 is $.
What is a Pip

Relating to a given currency pair in the smallest possible change in prices “pip” is called.

Pip, “Price Interest Point” has been shortened from the initial letters of the word.
Reported in most of the parity price of 1 pip is one of ten thousand. In the Japanese Yen which is one percent of parity price of 1 pip.
Relating to a given currency pair in the smallest possible change in prices “pip” is called.
Pip, “Price Interest Point” has been shortened from the initial letters of the word.
Reported in most of the parity price of 1 pip is one of ten thousand.
So prices are given as 4 digits after the comma. For example, EUR / USD parity in the sales price of our Suppose now 1.3820. Price after a certain period of 1.3821 to get out. 1 pip price is increased. Pip profit or loss in transactions generally is measured by:

1 Euro bought and then 1.3820 U.S. Dollar 1.3835 Dollar money money Let’s be sold. Here, our profit

1.3835-1.3820 = 0.0015 ie 15 pip’tir.

U.S. Dollar / Japanese Yen price parity reported in the 1 pip prices after the comma biridir.Yani percentage is given as 2 digits. For example, USD / JPY 115.60 we get parity in the purchase price. Price of 115.40 then a fall, and say we’ve closed our position. Our losses in this process

115.60 to 115.40 = 0.20 ie 20 pip’tir.

The following table is given as an example pip value:

The parity of the currency against U.S. dollar
EUR / USD .0001 USD
GBP / USD .0001 USD
AUD / USD .0001 USD

As the base currency of U.S. dollar parity
USD / JPY JPY .01
USD / CHF CHF .0001
USD / CAD CAD .0001

Of cross-parity
EUR / JPY JPY .01
EUR / CHF CHF .0001
EUR / GBP GBP .0001
GBP / JPY JPY .01
GBP / CHF CHF .0001
CHF / JPY JPY .01
Many dollars is 1 pip
If the exchange is not dollar-based with the following formula 1 pip’in few dollars that we can find

* The minimum rate of change of Lot units (eg 0.0001)

For example, EUR / USD parity in the standard lot of 100,000 units a few dollars pip’in s find out:
100000 * 0.0001 = 10 $. So 1 pip $ 10 is.

This account could have said:
EUR / USD parity price received from 1.4020, and 1.4021 s sold price. 100.000 EUR buy 100.000 EUR, then we’re sold:

Our sales amount: $ 140,210
What we paid: $ 140,200
Difference -> 140,210 to 140,200 = $ 10

In the parity of the dollar-based currency is the following formula 1 pip’in few dollars can find:
(The smallest difference / Exchange) * Lot unit

Example:
USD / JPY 120.20 establish parity
(.01 / 120.20) x 100000 $ = 8.32 $. So 1 pip $ 8.32 obtusa.

USD / CHF 1.4555 establish parity
(.0001 / 1.4555) x $ 100,000 = $ 6.87. So 1 pip $ 6.87 obtusa.
What is Tick

For a process that may be the smallest time period in question is called tics. Tiki is not in the range evenly. For example, while a second, very active in the market and can create a few tics, the market is very stagnant in the cross-parity to form a tic for hours can be expected.

For a process that may be the smallest time period in question is called tics. Tiki is not in the range evenly. For example, while a second, very active in the market and can create a few tics, the market is very stagnant in the cross-parity to form a tic for hours can be expected.

Graphics on the horizontal axis that is generally tics are shown on the x-axis.

Brokerage online trading platform of the unit shows the price movement tics. So each new transaction occurs when a tic. English price monitoring in this way “tick by tick,” he is.
Balance (Balance) is
Balance (Balance) account is our currency. One of our account balance does not change positions to open and grab.
So our position is clear the current profit or loss does not change the balance of our account.
To be able to change the balance of our account of our position as one or more of the profit or loss off and realize we need to consider.
Assets (Equity) is
Asset value of our account, the account is the value we are fluctuating. In other words, asset value of our account of our open positions are included in profit or loss is the computed value.
If we do not have open positions with the asset value of our account of our account balance will be the same.
Close all open positions our most recently we have seen asset value when we value will be our new balance.

Let’s take an example. Our balance of $ 5000 or more, while a clear, our position is let’s consider. Asset value of $ 5600 as our platform we’ll see. In this case, open positions in our total profit is $ 600.
Another example more:
One of our account balance was $ 10,000 get our open positions and assets (equity) value that our $ 8500 we’ll see. In this case
Our position is clear in the $ 1500 damage. If this loss if we realize that our new balance $ 8500 If we close our open positions will be.
Now try to respond to the following questions:
Balance $ 10,000, while 2 std. lot (ie 200K) would be used in EURUSD parity. Parity is rising and is now 30 pips profit are? What is your asset value?
Answer:
1 in a position of parity for 100K’lık EURUSD pip’lik profit or loss $ 10 profit or loss is lık. In this case the total (not realized), our profit

2 * 30 * $ 10 = $ 600 ‘is.

Account asset value of our $ 10,600 obtusa.
Required collateral (Required Margin) is
You can open a position he wants from you is how much money your brokerage. Is often expressed in percentage.
Required collateral (Required Margin)

You can open a position he wants from you is how much money your brokerage. Is often expressed in percentage. For example, required for guarantee 100:1 leverage ratio is 1%. That is $ 1000 for $ 100,000 to process your security deposit is required. 100:1 leverage ratio as the $ 1000 security deposit $ 100,000 ‘lık Suppose you perform operations. In this case, the debt will be receiving $ 99,000 from your brokerage. Prize has been made by taking debt transactions are transactions.

Leverage ratios for different collateral specified in the table below are percentages.
Required collateral Leverage Ratio
5% 20:1
% 3 33:1
2% 50:1
1% 100:1
0.5% 200:1
0.25% 400:1

Exercise:

GBP / USD parity would you like to work with 100,000 units. Your brokerage house for the quotation given parity 1.8850 / 1.8855. This process, with odds of 100:1 leverage would want to perform. How many dollars are needed to guarantee this process?

Required Coverage: GBP 100,000 / 100 = GBP 1000
Let us turn this amount to USD:
GBP 1.000 X 1.88525 (average exercise price of 1.8850/1.8855) = $ 1,885.25
Required collateral: $ 1,885.25.
Free Guarantee (Usable Margin) is

Damage that may occur in investment to meet the amount in your account should remain available to the security (employment security), or in English “usable margin” or “free margin is called.

Coverage is available, the transaction against the potential damage is kept secure. Investors from a far greater amount of security deposit in the account of a transaction can take positions. If your account falls below the amount of collateral requirements, some or all of your open positions can be closed. This measure of the investor’s account, not to move to minus implemented.

Let’s take an example: Suppose you have $ 10,000 in our account.
USD / JPY at 100:1 leverage ratio parity with the process we’ll do. In this case, our process is based on the size of dözvizin that $ 100,000 of 100,000 units obtusa. This position required to open a guarantee

100,000 $ / 100 = 1,000 is $.

Our position is opened in our account of the money $ 1000 ’s is blocked. Have been blocked at the cash collateral is used.
Independent assurance, account value of our assets (equity), used to issue a guarantee is obtained.

For example, our account of asset value (equity) 10,600 $ Suppose a promotion. Our open positions in this case is $ 600 in profit. Our guarantee is that is can be used free

$ 10,600 – $ 600 = $ 9600 means.

Can be used to zero the value of collateral falls short position or your position is closed. In this case “Call Coverage” (Margin Call) is called.
Used collateral (Used Margin) is

“Security used” to keep your position open your brokerage house is blocking the amount of money. Although this money the money you close your open positions until you can not use. This re-use the money from closing your position, but you can enter.
Used car guarantee that you have left your institution may want to consider, such as a deposit. Position is opened is blocked. This position is closed, re-release is blocked.

What is leverage?
Leverage, in English money “leverage”, you have more capital on the financial transactions to ensure that a mechanism. Leverage transactions leverage than non-operation is high risk, leverage in Forex investors need to be very good advice.

Leverage is the risk associated with each other. A high leverage ratio and the amount of damage as well as your earnings increase.

Forex market position for each position you open a certain amount of money up off is blocked. These funds should be blocked to the “necessary guarantees” (required margin), after being blocked in this stalemate “used security” (used margin) is called. Blocked under the risk of losing this money is not the money. We can see this money as a deposit. Our position is open as long as we can not use this money but our position is closed, this money is released again. There should be blocked, the leverage ratio should be determined how much of the money is.

The higher the leverage ratio is, the less the money is to be blocked.
How much leverage ratio is lower, the more the money will need to be blocked.

Now, let’s give an example.

We want to open a position in the amount of $ 100,000 Let’s think. If the leverage ratio is 1:100 that our position is opened 1 / 100 * 100000 ie $ 1000 must be blocked. Need to be blocked, this amount “necessary guarantees” (required margin) have told you was said.

Let’s go back to our example above. If the leverage ratio is 1:100 in 1: 200 had more than 100,000 just for a transaction of $

1 / 200 * 100,000 = $ 500 would have required collateral.

When you open your account as you want FXCM’de leverage ratios change. If an arrangement in the opposite direction, the default standard account leverage ratio of 1:100, while the mini account is the default rate of 1:200 leverage ‘roll. I get easy account the necessary guarantees sabitllenmiştir each parity. Should be left for a standard lot is $ 1000 while the amount of collateral required collateral amount of $ 50 for 1 mini lot obtusa.
Guarantees Call (Margin Call) is

Your account’s net assets (equity) is used as soon as the collateral falls below your guarantee call occurs. In this case, some of the open positions or all of the current market price is close by your brokerage.
In other words, guarantee that your call is available collateral (usable margin) decreased to zero occurs.

The available collateral (usable margin) = Net Assets (Equity) – Used collateral (Used margin)
Net Assets> used as collateral does not occur as long as the collateral call.
If the Net Assets <= If you used collateral collateral call is made.

For example: When you first open an account status of your account:
Net Assets Available collateral collateral balance used
5000 $ 5000 $ 0 $ 5000

shaped.
Now the necessary guarantees 1% (100:1 leverage) and imagine we buy EURUSD 1 Lot.
(1.4200 EURUSD parity and spread 2 pips)
Net Assets Available collateral collateral balance used
5000 $ 4980 $ 1420 $ 3560

$ 3560 loss as a result of this process, your positions will be created when the collateral calls and your position will be closed automatically. If this situation occurs the status of your account will be as follows.

Net Assets Available collateral collateral balance used
1420 $ 1420 $ 0 0
Shift (rollover) is

Forex market drop positions must be closed within two business days. For example, EUR / USD parity in the $ 10,000 worth of sales transactions imagine we do. $ 10,000 on Thursday as the seller have to deliver. Forex markets are not physically ship next business day to day operations beyond the end is not shut down. This process shift (rollover) is called. The next day the same is not beyond the value of the position. Translation of open positions was turned off from today’s value date, the next day reflected the difference of interest from the value date format is reopened.

Most of the companies at the end of the tool on each transaction EST time 17.00 at the open positions will receive an account with either are or will be charged. This will take charge Conditioning and received and sold the currency short-term interest rates related to the difference is from the face. Pricing or the entire amount of debt will take over operation is performed. That action has been using leverage, not shift position over the amount of collateral over the total value is made.

With that purchase long positions in the drop position, the purchase of the sold currency’s interest rate is higher than the currency in which the interest rate due to interest income differences are obtained. That is the basis for purchase of foreign currency against foreign currency interest rate is greater than the interest rate is the interest income. The purchase of the sold currency’s interest rate currency’s interest rate is lower than the differences due to the loss of which would be of interest. That is the interest rate base currency against foreign currency interest rate is lower than the one in question is the interest expense.

For example, UK interest rates are much higher in interest rates in Japan. Pound has purchased 17.00 hours EST investors’ will have an income. Otherwise, a loss that has investors will buy Pound.

Translation Example

1 lot that is U.S. $ 100,000 worth EUR / USD parity are taken. EUR / USD rate of 1.3500 suppose. Short-term interest rate of 2.25% for Euro, USD to get short-term interest rate is 4.00%.

Theoretical shift in the account are as follows:

Price = (contract nominal value * (base currency interest rate – the anti-currency interest rate)) / (365 * base exchange rate)
(100,000 *% (2:25 to 4:00))
———————————– * Amount = 1.3500
365

Price = – 6:47 USD

For us that we buy EUR and USD interest rates EUR’nun interest rate is higher than the interest due for ötlemeden revenue we have just obtained. (The example given is for educational purposes only, actual data was not used.)

On Wednesday, the transaction does not close at the end of the day due to enter the weekend together more interest burden is born. The load is more than 3 times compared to other days.
I am new to enter the Forex market. Least how much money do I open an account?

This account will vary depending on the contractors that you open. However, you can open an account at least $ 100 are included for contractors. Before opening the real account (if any) in the virtual trading platform of your contractors we recommend that you try to open the account. Most contractors can make a deposit from trial process offers special accounts. Experiment by making your account and transaction processing platform can be used both for the actual transaction experience can earn in the future you will be carried out.
Who is the Market Maker?

Market makers, who specializes in this business, banks or institutions in this regard are rendered competent. Market makers are involved in the first degree the direction of the market. Establish a personal bond with customers, the position of non-market makers to their customers as a whole takes. Portfolio management through the work they do or do not. Their customers’ transactions are required to conduct not forwarding. Buying and selling to customers by offering two-way choice of these options will fulfill the customer wants. Market makers according to customers’ selection work to ensure a supply-demand balance.

What is Spread?

Exactly the market value of the currency pair with the players receive and will not sell. Currency pairs are given two prices: Sales (bid or sell) and Practice (ask / or buy). The difference between these two price “spread” (exchange rate / points) is called. Let’s take an example:

Exactly the market value of the currency pair with the players receive and will not sell. Currency pairs are given two prices: Sales (bid or sell) and Practice (ask / or buy). The difference between these two price “spread” (exchange rate / points) is called. Let’s take an example:

EUR / USD parity prices for the 1.3560 to 1.3563 olsun. Spread here:

1.3563-1.3560 = 0.0003 so 3 pip’tir. Our purchase price is the same as our selling price if we lose the money spread.

Established tool of our profit, is the difference between buying and selling prices (spread). When we open a new position processing, spread with the start up losses.

Is Spread costs?

Spread is the process you make an automatic would be a charge. When you get the position because Spread’ten processing, you’ll start to damage by the number of pips. To pass the price increases by land must be spread.

For example, the investor’s purchase price is entered and processed immediately after the position closes Consider the sale price. In this case, the investor’s loss will be spread.
Are the same parity all over the world?

Over the same time period in world parity prices are almost identical. The world’s largest banks are linked with each other private communications network. All transactions in the Forex market with the help of the banking network occurs. This information network of any bank with the parity set can be learned quickly. According to the rules of exchange in the world free market prices are determined by supply and demand.
What does it mean to take a long position?

Take a long position (buying positions – going long) base to open foreign currency position by means of purchase.

EUR / USD kotasyonu 1.2290 / 1.2292 olsun. In this case, you can buy 1 Euro for 1.2292 dollars, we can sell 1 Euro for 1.2290 dollars, right?

That we have made as a result of technical or fundamental analysis of the Euro against the U.S. dollar will depreciate the value of the euro will win so we’ll think.

In this case the future to sell the euro appreciation we can get a profit by buying euros.

In this case “to take a long position is called. 1.2292 purchase of our ‘Suppose also occur. We set up the purchase, we have realized the difference (spread) that is up to 2 pips (ie 0.0002) means we are hurt. That is our position, our position by selling off the Euro re-opens the dilemma that If we set up 2 pip difference (spread) lose much money.

For us to profit in real terms of the euro for at least 3 pips (points + 1 pip) value must be won.

Certain time is as follows: Consider a new kotasyonun:

1.2300 / 1.2302

Now, 1.2282 Euros 1 ‘den we can get, right?

1 euros
1.2290 ‘den bought
1.2300 ‘den we sold.

1.2300-1.2290 = 0.0010 = 10 pips, we have gained.
What does it mean to take a short position?
Take short positions (sales position – going short) to open position by buying currency basis means.
EUR / USD kotasyonu 1.2290 / 1.2292 olsun. In this case, you can sell 1 Euro for 1.2290 dollars, we can get 1 Euro for 1.2292 dollars, right?
That we have made as a result of technical or fundamental analysis of the Euro against the U.S. dollar will gain value that will think that we’ll lose the value of the euro.
In this case back to the future Euro Euro keybettiğinde sell for a profit can be obtained.
In this case “to take a short position is called. 1.2290 of our sales transactions from Suppose performed. We set up our sales difference (spread) that is up to 2 pips (ie 0.0002) means we are hurt. That is our position, our position by taking off the Euro re-opens the dilemma that If we set up 2 pips difference (spread) lose much money. For us to profit in real terms of the euro for at least 3 pips (points + 1 pip) must fall. Certain time is as follows: Consider a new kotasyonun:

1.2280 / 82

Now, 1.2282 Euros 1 ‘den we can get, right?

1 euros
1.2290 ‘den we sold.
1.2282 ‘We’ve received from.
1.2290-1.2282 = 0.0008 = 8 we have just pip gain.
Forex is inadmissible?

Islam, the person that won an event at the end of the money “halal” is important.

Receipt of money or to sell the money be replaced with Islamic law in the process of “consumables akti” he is. Both advance to the condition that the cost of this process is inadmissible. In the form of foreign exchange trading can make your own country, this trade between countries can also perform. As long as they both get the price in advance. Hz. The Prophet (SAAS), monetary and monetary terms for the sale of assets has been received and said: “If the sexes are different, to be provided in advance as you wish to buy or sell”
CFTC is
CFTC (Commodity Futures Trading Commission), Turkey’s SPK (Capital Markets Board) and the same status; Options and Futures in the United States market is the institutions that control official. Forex markets are controlled in the United States is responsible for the CFTC.
What is NFA
NFA (National Futures Association) the National Futures union, Options and Futures markets in the United States to make control of the picture is an institution assigned by the CTFC. Working principle of the sector itself NFA’nın supervising yönündedir. NFA is also responsible for the Forex market are controlled the world’s most serious and most respected financial markets is the supervisory authority.

What is the Bretton Woods Agreement?

Bretton Woods, a small U.S. state that is an area of the town of New Hampshire’deki Carroll. Organized here in 1944, the United Nations Monetary and Financial Conference of the agreement was signed, and this conference, then the resulting system with the “Bretton Woods System” was named. Bretton Woods’ta, Mount Washington Hotel in 45 countries attended the conference.

At the end of this conference agreement signed with the International Monetary Fund (IMF) was accepted as the central organization. Agreement established with the system “Gold Exchange Standard”, also is.

Adjustable with a fixed exchange rate system “Bretton Woods System” at the same time has created a gold exchange standard. Under this agreement because the U.S. dollar, U.S. dollars or other currencies was tied. Through this agreement, $ 35, 1 ounce gold was equal to the constant value. The countries that are in the hands of U.S. dollars through the central banks of these dollars in the United States turn into gold. Yet the U.S. dollar in the hands of private individuals in the free market, but they turn into gold.

The aim of Bretton Woods, in the face of short-term fluctuations in exchange rates an order to bring stability, exchange rate of change in exposure to the devaluation was to prevent. According to the IMF agreement, according to the system responsible for implementing this goal was kept.
What is the Financial Markets?
Funds with a supply of funds to entrepreneurs who have the savings flow between the regulating agencies, current investment and financing instruments that provide them with legal and administrative rules regulating the financial market structure is composed of.

Financial markets, money market and capital market will be divided into two as:

Money Market:
Properties of money market funds, short-term supply and demand market is facing. Usually does not exceed one year term in the money market. Instruments, monetary, foreign exchange, repo-reverse repo, and securities are up to one year term.

Capital Markets:
Capital market, medium and long-term resource needs of those who want to evaluate those who meet the savings market. Tools stock, bonds, treasury bills, financing, securities such as bonds are.

SOURCE: TSPAKB
What is the Capital Markets?
Capital market such as stocks or bonds that provide partnerships, investment vehicles that provide financing through bonds, such as alacaklılık, tasarrufçu of resources transferred to entrepreneurs piyasalardır.Yatırımcılar, a certain return on their investment with the expectation of investment instruments are evaluated. Entrepreneurs, the shares in the capital market or export their borrowing through bond investors convert their savings into real investment. Including bank intermediation and brokerage houses, investors in line with the demands and expectations of capital markets and transaction in equity or debt securities of companies in the IPO performs. Entrepreneurs with investors, market contributes to economic growth through the meeting.
Capital market is the primary market and secondary market is divided into two:

Primary Market:

Securities such as stocks and bonds for export of those who have directly faced with the savings market. One of the most beautiful examples of the primary market, the company is a public offering of stock. Companies, medium-and long-term funding is provided for in the primary market. Exported from the fields of securities, they want to cash them again, never in stocks, bonds prior to maturity in them are exported to the organization can not apply.

Secondary Market:

Negotiable securities market and ensure that the securities market that define this market is the best example. In these markets, securities intermediation by the stock exchange has been received and are sold to investors. Funds and securities in the secondary market investors changes hands between the companies will not have access to the source. Investor receives securities in the secondary market could easily sell in the know, the primary source for companies to transfer more comfortable in the market will decide.
Capital Market Economics Provides the What are the Benefits?
Creating resources to the economy:

Capital market supply and demand for securities allow comparison. Increasing the level of savings in the economy and savings in the most productive investment areas of the market to be an effective shift is required. Funds requested those wishing to evaluate their savings and also allow them to securities in the hands of those who want to sell them on the market are included. Budget deficit through borrowing or privatization of the state who want to meet short-or long-term debt securities issued to the private sector debt and equity interests in the capital will be shared between new people and institutions of the companies will encounter is where the capital markets.

Expansion of capital base:

Capital market, encourages public. Many people in the active secondary market to sell small amounts of the small savings of partnering with large enterprises and the expansion of capital base is possible.

Privatization efforts to implement:

The main purpose of privatization of the state’s economy is to withdraw from the business field. The state is also used to customize applications to capital markets, capital markets so that domestic and foreign savings are not addressed in these markets by directing the main purpose perform, but also provides a reduction of public debt.

Liquidity provision:

Capital market, through the secondary market for securities previously issued to create a continuous market provides. All securities to buy or sell at any time will be possible, of securities markets in place, that ensures liquidity. In this environment, investors in securities and at least cost easily change the hands.

SOURCE: TSPAKB
Considered to what is necessary to invest when you do?
The following points when investing in is worth keeping in mind:

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