Market Forex – is the international currency market . It got its name from a reduction in the English name of currency exchange : FOReign EXchange. Despite the fact that the Forex market is more than a young market compared to other institutions and financial relationship exists only since the early 70 -ies of XX-th century, it is the most far-reaching in scope and fastest growing market . Every day in the Forex market is committed transactions totaling approximately $ 4 trillion U.S. dollars, which , for example, 30 times more than the total volume of all stock markets in the U.S. combined.
In the forex market , like other markets , the basis of the activities of trade in a range of goods . In the case of this set of Forex products are national currencies of different countries.
The basic principle of any movement in exchange rates is the need for government agencies and commercial organizations around the world to convert profits earned abroad, in national currency. However, they account for about 5 % of the total turnover of the Forex market . The remaining 95 % provides currency traders speculative capital seeking to profit from the movement in exchange rates.
A distinctive feature of the Forex market is its stability constant . It is no secret that the main risk in any financial market is its ability to collapse , falling stock market index . However, unlike other markets ( equity and commodity ) , Forex guaranteed of protected thanks to the specifics of the main and single commodity – currency. If the shares are worthless – it is a failure. If the dollar collapsed , it just means that another currency has become stronger , and thus the movement became more active in the market , thanks to the competent trade that leads to additional income trader. This is the unique stability of the market and related business : currency is the most liquid and secure trading tool of all.
Of greatest interest to speculators are the most common ( most liquid) currencies , ie “Core” . Today over 85% of all transactions are transactions with the major currencies , which include the U.S. Dollar (USD), Japanese Yen (JPY), Euro (EUR), British pound (GBP), Swiss Franc (CHF), Canadian (CAD) and Australian dollars (AUD).
FOREX is available anytime, anywhere. Thanks to the Internet , you are at any point in the world, can make deals with clients who are on the other side of the globe . As mentioned above – the foreign exchange market is constantly provides you the opportunity to earn as currency fluctuations or that size occur several times a day. Thus , the activity of the movement of exchange rates in conjunction with your intellectual capacity and the latest computer technologies allow to create a profitable business right now . In this regard, the more relevant services are ECN – brokers who allow traders to trade against each other by offering a price within the system.
One more advantage of the Forex market – is the ease of entering this market. Barrier to entry is equal to one dollar, and the money spent on learning the basics of Forex, purchase of a computer and the formation of the deposit, you can not run any real business. Find reliable experienced broker is not difficult – offer in this market is huge. Everything else depends on the person who decided to enter the FOREX.