The word “forex” means short, the foreign exchange market or the global stock of foreign money which
would fit the word “FOReign EXchange market” in the English language. And be speculation by buying and selling of major currencies, which possess the basic share from operations in the forex market is the U.S. dollar (USD) (base currency) and the euro (EUR) and pound sterling (GBP) and Swiss franc (CHF) and Japanese Yen (JPY).
And are buying and selling of those currencies in U.S. dollars or other currencies, among them the so-called currency pairs, and so against the U.S. dollar or any currency against another currency value. And considered speculative currency trade on the stock market, and also the most risky, because of rapid fluctuations in the currency of the upward trend to trend downward, or vice versa. In addition to the currency market there are other types of stock exchanges are: gold, silver, Petroleum Exchange, shares and bonds, agricultural crops and energy. The currency exchanges are characterized by various indicators and technical analysis, news analysis and rapid access to profits.
The daily volume of currency trading in the Forex market to reach $ 3 trillion. For comparison recall that the volume of activities of New York Stock Exchange does not exceed $ 300 billion per day, it was necessary to half a year to New York Stock Exchange to reach the size of the currency market.
And I have a bond market and sell the future (Future – FUTURE) and lack of a fundamental difference compared to the forex market: they stop working at the end of the day and resume work with the next morning. And it is natural that if you are trading in the markets of Germany, for example, and there in America, the events of a significant impact on the market, you may find the market at the beginning of his work is significantly different than expected.
The forex market is not a market literal sense of the word, since it has no center and no place has a certain exercise a trade. The trading exercised through the telephone exchange and Internet computer at a time, one of hundreds of banks around the world. Alumblyonat hundreds of dollars are sold and purchased every few seconds, and this is the so-called currency trading.
Forex market combining four regional markets: Australian and Asian, and European and American. And continue operations where all trading days of work, and the market operates around the clock, or 24 hours a day. And notes the relative calm from 20:00 until 01:00 GMT, and is attributed to close the New York Stock Exchange eighth in the evening and the start of the Tokyo Stock Exchange work at one o’clock in the morning.
The currency market is not about working hours because the stock traded between banks located in different parts of the world. And the prices of large multi-currency changes, which helps to do some business operations in a single day. It is known that reductions of a significant effect on the financial markets which could lead to the collapse of stocks or bonds. The forex market decline in the dollar (for example) means the price rise of other currency and there is no collapse of markets such as stocks or bonds.
Established Forex market (FOREX) for the financial transactions between banks in 1971, when turned transactions in world trade from the use of fixed values of the currencies to float values. This would be the result of group financial transactions carried out by agents of the financial markets to convert a certain amount of money in the currency of one country to another country’s currency value of pre-agreed to a certain date. And determines the currency exchange rate designated for other currency simply: supply and demand for conversion approved by the parties.
That the volume of operations in the global financial market in steady growth. Associated with this great development in world trade and to lift the ban on the currencies in many countries. That 80% of all transactions is a speculation in the currency market aimed at obtaining profits from the differences in currency rates. And attract these speculations by many participants, both financial organizations or individual investors.
As a result of the tremendous development in communications technology in the last two decades, this has changed in the market itself to a large degree. That the profession currency trader, which was surrounded by an aura of secrecy has become almost unanimous. That trade in currencies, which until recently was limited to major banks monopoly is accessible to all as a result of electronic commerce. Even the largest banks in favor of electronic trading as well as to personal transactions between the parties.
The aim of the Forex market as an area for the use of the possibilities of a person’s financial, mental and emotional is not a stroke of luck. Some may succeed in this, but not for long. The key advantage of the currency market is that it’s a place for the success of using intellectual potential.
A significant feature of the currency market is a property of balance, although this seems strange. Everyone knows that the fundamental characteristic of the financial market is the sudden decline. However, the Forex market differs from the stock market in that it does not fall. When you lose stock value of this collapse. But if the dollar falls, for example, that just means that other currency has become stronger – an example of the Japanese yen, which is now in a few months of 1998 the strongest quarter for almost the dollar. Have reached the decline of the dollar for some days in that period of tens of per cent. Although this did not happen the collapse of the market and transactions continued as usual. In this limited stability of the currency market and the associated work. Currency is a commodity full liquidity can be purchased or sold at all times.
Currency market works all the time from non-stop is not linked to hours of work assigned to the Stock Exchange, the transactions between banks located in different parts of the globe. That changes in currency rates are significantly and several times be sufficient to carry out several operations in every day. If you have a proven trading technology and secure you can make it work area does not compare the effectiveness of its effectiveness any other area. Therefore, we find the major banks acquire the most expensive equipment and used dozens of specialist trading in the various sections of the currency market.
That the expenditure to engage in this work is not great. In fact, the business needs in this area of study and acquisition of initial computer purchase information service and does not exceed the value of insurance all together a few thousand dollars and this amount can not invest seriously in any other field. With a huge supply of services in this area easy to find an experienced agent in the currency market. What is left after that depends on the shops. We conclude from this that the success in this area depends on you personally more than any other work.
The main thing for success in this market is not the size of the money entering the market as far as the Permanent Hoturkiz at market study, and understanding Mikhanykyate and wishes of the participants. This results in the continuous improvement of the way you work and organize your trading. This did not happen to successful people in the currency market was adopted on the capital only.
We have cut global currency system a long way in a thousand years of human history, but the changes that occur in today’s most interesting and did not unthinkable one before. There are two basic alter define the new shape of the global system of currencies:
* The cash break now fully separated from any holder of material;
* Technology has enabled communication and exchange of information collection strong financial systems of different countries in the global financial system one.