The foreign exchange market (Forex, FX or Forex) is a global company, globally decentralized financial market for trading currencies. Financial centers around the world anchor function of negotiations between a wide range of different types of buyers and sellers all day, except weekends. The foreign exchange market determines the relative value of different currencies. [1]
The main purpose of currencies is helping to international trade and investment, allowing companies to convert one currency to another currency. For example, it enables a business in the U.S. the importation of British goods and pay the pound, despite the company's income is in U.S. dollars. It also supports direct speculation on the value of currencies and the carry trade, speculation about the change in interest rates in two currencies. [2]
In a typical exchange transaction, one party purchasing a quantity of one currency for the payment of an amount of another currency. The modern foreign exchange market began to form during the 1970s after three decades of government restrictions on foreign exchange transactions (the Bretton Woods system of monetary management established the rules for commercial and financial relations among the major industrial countries of the world after the Second World War), as countries gradually switch to floating exchange rates above the exchange rate, which remained fixed as the Bretton Woods system.
The foreign exchange market is unique because of the
the huge volume of trade represents the largest asset class in the world that leads to the high liquidity;
geographic dispersion;
continuous operation: 24 hours a day, except weekends, trade, that is 20:15 GMT on Sunday to 22: 00 GMT on Friday;
the variety of factors that affect exchange rates;
the relatively low profit margins compared to other fixed income markets, and
the use of leverage to increase profit margins and loss, and on the size of the account.
As such, it has been referred to as the market closest to the ideal of perfect competition, despite the foreign exchange intervention by central banks. According to the Bank for International Settlements, [3] from April 2010, average daily turnover in foreign exchange markets is estimated at $ 3.98 trillion, an increase of approximately 20% in the volume $ 3.21 trillion per day from April 2007. Some companies specialize in the currency market had put the average daily turnover in the U.S. more than $ 4 billion. [4]
The $ 3.98 trillion breakdown is as follows:
$ 1.490 trillion in spot transactions
$ 475 billion full-term contracts
$ 1765 billion in currency swaps
$ 43 billion currency swap
207 billion in options and other products
for more information go to Wikipedia.com
If you want to learn all about forex money making with a robot Click Here!
The main purpose of currencies is helping to international trade and investment, allowing companies to convert one currency to another currency. For example, it enables a business in the U.S. the importation of British goods and pay the pound, despite the company's income is in U.S. dollars. It also supports direct speculation on the value of currencies and the carry trade, speculation about the change in interest rates in two currencies. [2]
In a typical exchange transaction, one party purchasing a quantity of one currency for the payment of an amount of another currency. The modern foreign exchange market began to form during the 1970s after three decades of government restrictions on foreign exchange transactions (the Bretton Woods system of monetary management established the rules for commercial and financial relations among the major industrial countries of the world after the Second World War), as countries gradually switch to floating exchange rates above the exchange rate, which remained fixed as the Bretton Woods system.
The foreign exchange market is unique because of the
the huge volume of trade represents the largest asset class in the world that leads to the high liquidity;
geographic dispersion;
continuous operation: 24 hours a day, except weekends, trade, that is 20:15 GMT on Sunday to 22: 00 GMT on Friday;
the variety of factors that affect exchange rates;
the relatively low profit margins compared to other fixed income markets, and
the use of leverage to increase profit margins and loss, and on the size of the account.
As such, it has been referred to as the market closest to the ideal of perfect competition, despite the foreign exchange intervention by central banks. According to the Bank for International Settlements, [3] from April 2010, average daily turnover in foreign exchange markets is estimated at $ 3.98 trillion, an increase of approximately 20% in the volume $ 3.21 trillion per day from April 2007. Some companies specialize in the currency market had put the average daily turnover in the U.S. more than $ 4 billion. [4]
The $ 3.98 trillion breakdown is as follows:
$ 1.490 trillion in spot transactions
$ 475 billion full-term contracts
$ 1765 billion in currency swaps
$ 43 billion currency swap
207 billion in options and other products
for more information go to Wikipedia.com
If you want to learn all about forex money making with a robot Click Here!
