About Forex What is Forex
?What is Forex
The word "Forex" means short, the foreign exchange market or the global stock of foreign money, which fits to the word "FOReign EXchange market" in English. And are speculative by buying and selling major currencies which holds the stake basic processes in the forex market is the US Dollar (USD) (base currency) and the euro (EUR) and pound sterling (GBP) and Swiss franc (CHF) and Japanese yen (JPY).
And the buying and selling of those currencies in US dollars or other currencies, including the so-called currency pairs and so against the US dollar or any other currency against other currencies in value. And are considered speculative in Win Forex Trading on the stock market, and also the most risky, because of the rapid fluctuations in the currencies of the bullishness to bearishness, or vice versa. In addition to the currency market there are other types of exchanges are: gold and silver exchanges, Petroleum Exchange, shares and bonds, agricultural crops and the energy market. 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. And compared to mention that the size of the New York Stock Exchange Activities of the shares does not exceed $ 300 billion per day, that is, it needs to be a half years for the New York Stock Exchange to reach the size of the currency market.
And I have a bond and future sales markets (Viuchr- FUTURE) and Palaces fundamental difference compared to the currency market: as they stop working at the end of the day and resume work with this morning. Naturally, if you are trading in the markets of Germany, for example, and the events have taken place in America, with a significant impact on the market, you may find the market at the beginning of his work significantly different from what I expected.
The forex market is not a market in the literal sense of the word, because it does not have a center and not have exercised a certain place where trading. The trade practiced by teleconference call and Internet computer at one time among the hundreds of banks around the world. Alumblyonat hundreds of dollars are sold and buy every few seconds, and this is what is called trading currencies.
Forex Market combines four regional markets: Australian and Asian and European and American. And trading operations will continue to work in it every day, and the market operates around the clock 24 hours a day. And notes the relative calm of 20:00 to 01:00 GMT, and is attributed to the closure of the New York Stock Exchange eighth in the evening and the start of the Tokyo Stock Exchange to work in one morning.
The currency market is not about working hours because Almtjarh exchanges between banks that are located in different parts of the world. And the large multi-currency rates changes, which helps to do some business operations in a single day. It is well known that the declines significant impact on financial markets, which could lead to the collapse of stocks or bonds. The forex market Declining US dollar (for example) means the rise of another currency and the price there is no collapse of markets such as stocks or bonds.
Founded Forex market (FOREX) financial transactions between banks in 1971 when the transactions in global trade has shifted from the use of fixed values of the currencies of the values of the flotation. This will be the result of financial transactions carried out by agents of the financial markets to convert a certain amount of money in the currency of one country for the currency of another country, a pre-agreed date of the value of a particular group. And identifies specific currency conversion rate for other currency simply: supply and demand for conversion approved by both parties.
The volume of transactions in the global capital market in steady growth. Associated with this great development in world trade and lift the ban on currencies in many countries. That 80% of all transactions is a speculation in the currency market aimed at profiting from differences in currency rates. This speculation and attract many participants, both financial organizations or individual investors.
As a result of the tremendous development in communications technology in the last two decades, this change in the market itself to a large degree. That profession currency trader, which was surrounded by an aura of secrecy has become almost a collective. The trade in currencies, which until recently was limited to monopolistic major banks is accessible to all as a result of e-commerce. And even the largest banks in favor of electronic trading as well as personal transactions between two parties.
The aim of the Forex market as an area for the use of the possibilities of financial and mental person is not a stroke of luck. Some may succeed in this, but not for a long time. The key advantage of the currency market is that the success of using intellectual possibilities.
One of the important characteristics of the currency market is the balance property despite the fact that this seems strange. Everyone knows that the sudden decline of basic characteristic of the financial market is. But the forex market is different from the stock market in that it does not fall. When you lose the stock will be worth this collapse. But if, for example, the dollar collapsed, it just means that other currency became Aqoa- example of the Japanese yen, which has become in a few months in 1998, almost the strongest quarter for the dollar. The decline of the dollar for some days arrived at that period of tens of per cent. However, the collapse of the market did not happen and transactions continued as usual. In this confined to the stability of the currency market and the associated work. The currency is full liquidity merchandise can be purchased or sold at all times.
Currency market works all the time non-stop hours is not linked to the specific work of the Stock Exchange, the transactions between banks are located in different parts of the globe. The 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 guaranteed you can make it work area does not compare its effectiveness effectiveness of any other field. Therefore, we find the big banks acquire the most expensive equipment used dozens of specialist trading in the various
sections of the currency market.
The expenditures correspond to engage in this work is not great. And the fact that the needs of the work in this area of the studied primary and the acquisition and the purchase of computer information service and does not exceed the value of the insurance are all together a few thousand dollars and this amount can not invest seriously in any other field. With a massive supply of services in this area is easy to find an experienced agent in the currency market. What remains after that depends on the store. We conclude from this that the success in this area depends on you personally than in any other business.
The main thing for success in this market is not the size of the money that the intervention by the market as far as permanent Hoturkaz on market study, and understand Makanekyate and desires of the participants. This results in the continuous improvement of the way you work and organize your trading. This did not happen to someone succeeded in the currency market depended on top of all the money.
I've cut the global currency system a long way in thousandths of human history, but the changes that occur in today's most exciting and did not unthinkable one before. There are two basic alter define the new shape of the global system of currencies
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