What is Forex?
The word "Forex" means short, the foreign exchange market or the global stock of foreign money, which fits for the word "FOReign EXchange market" in English. And it is speculative by buying and selling of the major currencies, which holds the stake core operations in the forex market is the US Dollar (USD) (base currency) and the euro (EUR), British Pound (GBP) and Swiss franc (CHF) and Japanese yen (JPY).
And the buying and selling those currencies in US dollars or other currencies, including the so-called currency pairs and so against the US dollar or any currency against another currency in value. And it is considered speculative trading in the currency earn in the stock market, and also the most risky, because of the rapid fluctuations that are the currency of the upward trend to the downward trend, 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 and news analysis and rapid access to profits.
The daily volume of currency trading in the Forex market to reach $ 3 trillion. And for comparison, 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 half a year 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) fundamental difference and inadequate 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 there in America events with a large 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, since it has no center and no exercise a certain place where trading. The trade practiced by calling teleconference and the Internet computer at one time among the hundreds of banks around the world. Alumblyonat hundreds of dollars are sold and purchased every few seconds, and this is what is called currency trading.
Forex Market combines four regional markets: Australian and Asian and European and American. And trading operations continue in it all the days of work, and the market operates around the clock 24 hours a day. And notes relative calm from 20:00 until 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 work at one in the morning.
The currency market is not about working hours because Almtjarh stock exchanges are among the banks that are located in different parts of the world. Exchange Rates and the large multiple changes, which helps to do some business operations in a single day. It is well known that the declines significant impact on the financial markets, which could lead to the collapse of stocks or bonds. The forex market Falling US dollar (for example) means that the rise of another currency and the price there is no collapse of markets such as stocks or bonds.
Established 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 and financial markets to convert a certain amount of money in the currency of one country's currency for another country, pre-agreed date for a particular value of a group. And it determines the price of the particular currency conversion for other currency simply: supply and demand convertible approved by both parties.
The volume of transactions in the global capital market in steady growth. This is linked to the great development of world trade and lift the ban on currency in many countries. That 80% of all transactions is a speculation in the currency market aimed at profiting from the differences in currency prices. This speculation attracts many participants from both financial organizations or individual investors.
As a result of the tremendous development in communications technology in the last two decades has changed the market itself to a large degree. The profession currency trader, which was surrounded by an aura of secrecy has become almost a mass. The trade in currencies, which until recently was limited to major banks monopolistic became accessible to everyone as a result of e-commerce. And even the largest banks in favor of trading as well as personal electronic transactions between two parties.
The aim of the Forex market as an area for the use of the possibilities of financial, mental and psychological person is not a stroke of luck. Some may succeed in that, but not for a long time. The key advantage of the currency market is that it's a place for the success of using intellectual possibilities.
A significant feature of the currency market is the balance of the property despite the fact that this seems strange. Everyone knows that the sudden decline of basic property of the financial market is. But the Forex market differs from the stock market in that it does not fall. When you lose stock value this be a collapse. But if, for example, the dollar collapsed, it just means that another currency has become Aqoa- example of the Japanese yen, which has become in a few months in 1998, the strongest for nearly quarter dollars. This has been the falling dollar for some days arrived at that period of tens of per cent. Despite the collapse of the market it 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 a very liquid commodity can be bought or sold at all times.
Currency market works all the time non-stop is not linked to specific hours of work of the Stock Exchange, the transactions are between banks located in different parts of the globe. The currency rate changes are significantly and several times be sufficient to carry out several operations each day. If you have a proven trading technology and guaranteed you can make them work area does not compare its effectiveness effectiveness of any other field. Therefore, we find the big banks acquire the most expensive equipment and 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 who has studied primary and the acquisition of computer and buying information service and does not exceed the value of the insurance all together a few thousand dollars and this amount can not be invested seriously in any other area. With a massive supply of services in this area it 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, rather than in any other business.
The main thing for success in this market is not the size of the money that enters the market by as much as Permanent Hoturkaz Al market study, and understand Mikhanykyate and desires of the participants. This results in continuous improvement of the way you work and organize your trading. This did not happen to someone succeeded in the currency market is built on the top of all the money.
We'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: