At first sight it can seem that market FOREX is an original casino gamble where participants “guess” behavior of a rate and do “rates”. Actually traders earn not at the expense of the less successful colleagues, more truly, not only at their expense. Directly in market FOREX make transactions do central banks of the states, it is simple commercial banks and the broker companies giving access on the exchange market of huge army of speculators. Speculators, whom it is accepted to name traders, make profit that it is necessary for various states and banks to exchange currency, and enjoy advantages of floating exchange rates.

Brokers earn the living using the following method. From each carried out transaction the commission is taken from the client. Also an essential share in incomes of the broker companies are usual occupies a spread — a difference in the price between purchasing and currency sale. Usual in the quiet market at not especially greedy broker the spread constitutes 5 points though during strong movements of the market can reach 20—30.

Unlike owners of gambling institutions, incomes of the broker don’t depend on good luck and competence of its clients. To the intermediary it is unprofitable, that all its clients lost the deposits. After all, the broker company too performs operations in the exchange market reducing the risks to a minimum. And even if all clients will guess movement of a rate with probability of 100 %, it at all won’t cost a pretty penny the broker.

From words to business

I will dare to drop the description of the subtleties connected with opening of the account and settling of all necessary details, — any broker will give about it exhaustive information. We will assume that on your account is the modest sum at a rate of 2000 dollars.

Thanks to some skills of market research you have come to a conclusion that rate EUR/USD will grow on 50 points. Everything that it is necessary to make now is to open a position on purchasing of euro against dollar (to perform this operation it is possible in pair clicks of the mouse, using broker ON). Officially it is possible to consider that you buy 100 000 euros for 110 990 dollars really any 110 990 dollars it is not necessary to pay. At position opening on the account the certain amount which is usual constitutes 1000 dollars (the credit shoulder in market FOREX constitutes 1:100). This one thousand isn’t spent anywhere and will be returned into the account after transaction closing. At this time (while the transaction on purchasing is opened) the deposit rest (in our case 2000 – 1000 = 1000 dollars) are carried out by “ballast” role. If the rate goes in the necessary direction, “ballast” will increase, if in opposite it decreases.

Let’s admit, in this case you have appeared right also a rate has really raised on 50 points. At closing of the transaction at the rate of 1.1149 (on 50 points above a purchasing rate) we sell the purchased 100 000 euros, but already for 111 490 dollars we get profit at a rate of 111 490 – 110 990 = 500 minus the commission 15 dollars and a minus a spread of 5 points, or 50 dollars, total 435 dollars of pure, completely not virtual profit. However if the rate in our example has gone to other party losses would be not less considerable.

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