The word "Forex" means short, the foreign exchange market or the international exchange of foreign money, which fits the word "Foreign Exchange market" in the English language. And carried out by speculative buying and selling of currencies, which have the basic core portion of the operations in the Forex market and is the U.S. dollar (USD) (the base currency) and the euro (EUR) and pound sterling (GBP) and Swiss franc (CHF) and Japanese Yen (JPY).
And they were buying and selling of those currencies in U.S. dollars or other currencies, including the so-called currency pairs, and in exchange the U.S. dollar or any currency against another currency value. And is a profitable speculation in the currency trading on the stock market, and also the most risky, because of the high volatility of the currency of the upward trend of the declining trend, or vice versa. In addition to the currency market there are other types of exchanges: the exchange of gold and silver, oil stocks, shares and bonds, and energy crops. The stock exchange is very different indicators and technical analysis and news analysis and rapid access to profits.
The daily volume of currency trading in the Forex market of up to 3 trillion dollars. And for comparison we recall that the volume of the activities of the New York Stock Exchange does not exceed 300 billion dollars in the day, it is necessary for the half year to reach the New York Stock Exchange volume of the currency market.
And bond markets have sales and the future (Future - FUTURE) and lack of a fundamental difference compared to the currency market: it depends on the work at the end of the day and resume work with the next morning. And of course, if you are trading in the markets of Germany, for example and in America with a significant impact on the market, you might find the market at the beginning of work is significantly different than expected.
The Forex market is not market the literal sense of the word, since it has no center and no place has a certain exercise of a trade. The practice of trading via the Internet and connection computer at one time among the hundreds of banks around the world. Hundreds millions of dollars to buy and sell every few seconds, and this is the so-called trade in currencies.
Forex Market combines four regional markets: the Australian and Asian and European and American destinations. And continue trading in which every working day, and the market works round the clock, or 24 hours a day. And notes the relative calm and from 20:00 until 01:00 GMT, and is attributed to the closure of the New York Stock Exchange in the eighth start of the evening and the Tokyo Stock Exchange work in one morning.
The currency market is not about working hours because the stock exchanges are traded between banks located in different parts of the world. And the prices of large multi-currency changes, which may help to do some business operations in a single day. It is well known that reductions of a significant effect on financial markets, which could lead to the collapse of stocks or bonds. The Forex market The low U.S. dollar (for example) means that the rise of the price of other currencies and there is no collapse of markets such as stocks or bonds.
Established Forex market (FOREX) of financial transactions between banks in 1971 when a transaction in international trade from the use of fixed values of the currencies of the values of the flotation. This is the output of the Group financial transactions carried out by agents of the financial markets for the transfer of certain amount of money the currency of one country to another country's currency value of a pre-agreed to a specific date. And determine the currency conversion rate for the particular other currency simply: supply and demand for the conversion approved by the parties.
That the volume of operations in the global capital market in steady growth. Is associated with the great development of world trade and lift the ban on currency in many countries. That 80% of all transactions is the speculation in the currency market aimed at obtaining profits from price differences of currency. This speculation and attract many participants from either financial organizations or individual investors.
A result of the dramatic evolution of communications technology in the last two decades, this change in the market itself to a large degree. Profession currency trader, which was surrounded by a halo of secrecy is now almost unanimous. That trade in currencies, which was until recently limited to the major banks has become a monopoly in the reach of all the result of electronic commerce. Even the largest banks in favor of electronic trading as well as to personal transactions between two parties.
The aim of the Forex market as a potential person for the use of financial, mental and psychological is not the I'm Feeling Lucky. Some may succeed in this, but not for long. The basic advantage of the currency market is that the success of using a place of intellectual potential.
One important feature of the currency market is the balance function despite the fact that this seems strange. Everyone knows that the fundamental characteristic of the financial market is the sudden decline. But the Forex market differs from the stock market in that it did not fall. When you lose the value of this stock collapse. For example, if the dollar collapsed, it just means that other currency has become stronger - for example that the Japanese yen, which has become in a few months of 1998 the strongest quarter for almost the dollar. The decline in the dollar for some days in that period of tens of per cent. Nevertheless, there has been no collapse of the market and the transaction continued as usual. In this limited stability of the currency market and the associated work. Currency liquidity are full of goods can be bought or sold at all times?
Serve the market all the time non-stop is not linked to specific hours of work of the Stock Exchange, the transactions between banks located in different parts of the globe. Changes in currency rates that are significantly and several times be sufficient to carry out several operations in each day. If you have a proven trading technology and secure you can make it work area does not compare its effectiveness the effectiveness of any other area. Therefore, we find the major banks to acquire more expensive equipment and used dozens of specialist trading in the various sections of the currency market.
That the expenses to engage in this work are not large. The fact that the requirements in this area of the primary study and the acquisition and purchase of computer and information service not exceeding the value of insurance all together a few thousand dollars and this amount cannot 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 would depend on the shops. Draw from this is that success in this area depends to you personally more than any other work.
The main thing for success in this market, not the volume of money enters the market as it is focus on the study of the market, and mechanistic understanding and wishes of the participants. This results in continuous improvement of the method and organization of your trading. This did not happen that a person has been adopted in the currency market on the capital only.
Has made the global currency system, a long way in a thousand years of human history, but the changes that occur when today's most exciting, not to be forgotten before. There are fundamental alter define the new format of the global system of currencies:
The cash break now fully separated from any carrier material; communications technology has enabled the exchange of information and the collection of strong financial systems of different countries in the global financial system together.
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