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20 August 2011


Forex is the international foreign exchange market and an imposing part of the world markets. On FX market, foreign currencies with the specified date of delivery are bought and sold. The currency market has no definite address or headquarters. Forex is a global trading computerized system with wide movements of financial flows. Foreign currencies, stocks, oil and metals are traded on the Foreign Exchange Market.
That is why, in addition to commodity and stock markets there is a global currency market, open around the clock (except on weekends and holidays), where trade is held mostly via the Internet. The main participants of Forex are first of all central and commercial international banks and companies that are involved in export and import activity.
Forex market is a decentralized system where the members are related to each other. The development of the modern telecommunication facilities led to establishment of a new type of trade, so-called remote trading, made with the help of electronic dealing systems which are gradually replacing the traditional telephone dealing.
On Forex market it is possible to execute the trading operation of buying currency, for example, the euro (EUR) for the Swiss franc (CHF) or the Japanese yen (JPY). The operations and movements on Forex market determine the ratio of the freely convertible world currency rates. All currencies involved in trade are represented on the market with a floating rate of exchange.
The trading on Forex market has astonishing volumes with a daily turnover equaling three trillion US dollars, thus exceeding the volumes of trade on the stock market by almost fifty times. Over the last few years working on Forex has become more popular, thus, today it is a widespread and profitable type of occupation. Around 80% of the conducted deals have a target of speculative yield gaining from the difference in currency quoting rates.
FX market is the most widespread among the existing nowadays platforms. The participants of it have a chance to collect a considerable profit in a short period of time. Usually, there is a little initial capital needed for trading since currencies as trading instruments have a maximal liquidity level. Thus, no situation, when a contra - agent for a certain deal is absent, can occur on Forex.
It is believed that Forex market is more popular than stock markets. Nonetheless, it does not imply that Forex trading is much easier than operating with stocks, even though there are fewer subtleties. Besides, the reason for such availability is also an insignificant amount of the beginning capital, which was mentioned above. Not everybody can get to the stock market; on the contrary, on Forex one can start working with a several US dollar-deposit. If needed, the broker will provide the margin for the trader.
Of course, the profit is not so high on Forex market; however, the risk of losing everything is feeble.

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