Forex = Foreign Exchange : Foreign currency exchange / foreign exchange, commonly referred to as FOREX or FX or FX spot, and this is market financing the world's largest, with the amount of transactions per day were up to 1.95 trillion USD (2006). If you compare the market stock of New York 25 billion transactions per day, you can imagine this is a huge market like.
Foreign exchange market (Forex) market currencies between banks was established in 1971 when floating exchange rate are specified. The market is a range of activities in which each country's currency is exchanged, and where to do international business.
Forex is an organized group of about 4500 trading currencies, international banks, central banks and government commercial companies. The payment for export as well as the sale of assets must be approved by the foreign exchange market. This is called the foreign exchange market "consumption". There are also sections in the company speculative Forex is the exposure of resources to the wider economy overseas to participate in Forex to offset the risks of international investing.
So "goods" What is the FOREX market? The answer is MONEY. Trading foreign exchange is active transactions to buy some of this money and sell a number of other currencies takes place at the same time. Funds are traded through a broker or directly in pairs; for example EUR / USD or GBP / JPY.
FOREX trading activity can be complicated for many people because they can not purchase anything in the hands of the market. Think simply buying one particular currency as buying shares of one country. When you buy the Japanese Yen, you're an impact on exchange rates of Japan and indirectly on the Japanese economy, so the value of money is a reflection of the market assessment of "health" in the present and future of a nation.
Overall, the exchange rate of a currency versus other currencies is a reflection of the elements of an economy when compared with other economies.
Unlike market finance major, FOREX does not have a central account or any transaction key. The foreign exchange market is the market "interbank", and based on electronic transactions between systems linked together banks, and operates 24 hours a day,
In the last decade, only the "giants" This new market entry is. Minimum conditions if you want to trade in that time you should have 10 to 50 million dollars to start. FOREX launched initially aimed to meet the needs of banks and other giants in the industry, not the "little guy". However, with the wonderful support of the Internet, online trading system, the trading company was created to open the User Accounts "odd" for us. Today, the market brokers are allowed to break the large trading units and allow small transactions have the opportunity to buy and sell any number of these smaller values (lots).
Commercial banks have two roles in the Forex market:
1 Make the transaction between the two parties easier, for example, the company wants to exchange currencies (consumers).
2 Speculation by buying and selling currencies. Banks play a role in certain currencies because it is believed that in the future we will have a higher price (if buying stocks) and lower (if sold soon). One statistic that 70% of the annual profit of the banking world was born from currency speculation. These include speculative traders succeed in the world for example George Soros .
3 Types of Forex include central banks of other countries like banks Federal Reserve America. They participate in Forex to ensure financial profitability of their country. When central banks buy and sell foreign currency or currencies, the aim is to maintain the value of their country's currency.
Forex is very wide and there are so many people involved and not a person, only the central bank's new government can control the market. Compared to the average daily trading 300 billion of government bonds market and about 100 billion were traded in the market securities because America is huge Forex surpassed 1.9 trillion per day ( 2006).
The word "market" is the wrong name softly in describing Forex trading. There is no central location for trading activity because it is already in the money market in the future. The transaction was done over the phone and through computers in hundreds of locations around the world. Most trading is done between approximately 300 large international banks where property transactions for large companies, the government and the financial accounts of them. These banks continue to offer prices ("bid" to buy and "ask" to sell) with each other and with the broader market. The most recent numbers from 1 of these banks are considered current market price of that currency. The data reporting services provide different personal information on pricing "directly" through the internet.
All what you need when trading is a computer, Internet connection, and the information on this market.
