The market of what shared, when and why?
The foreign exchange market, Forex and FX are common abbreviations for the foreign exchange market. In fact, it is the largest financial market in the world, where money sold and bought freely. In its current state of the money market, it began in the 1970s, floating exchange rates were introduced, as the only participants in the market determines the price of a currency against another procedure of supply and demand. What refers to freedom from external control and the free competition of the Forex market is a perfect market.
With a daily accounting of more than thousand million $, the Forex market is three times of the sum of the volume of the value required, more than totally out and the Treasury of the United States combined. Forex is an OTC market where buyers and sellers different media lead the business of currency with the help.
Unlike other financial markets, the Forex market has no physical location or central Exchange. Given that the Forex market no physical Exchange, the market continuously traded has Center 24 hours a day, from one time zone and to other, through each of the main daily world financial. $ Billions of activity that are badge takes every day. From 1997 until the end of 2000, foreign exchange daily volume rose about $5000 million US $1.5 trillion and more (1.7 trillion US dollars per day is made according to various studies and dwarf all other markets trade in size and volume). It is very difficult, if not impossible; establish a very precise number because trading not on a stock exchange is centralized. But one thing is certain that the market will continue to grow at a phenomenal rate.
Only big companies, multinational banks and wealthy individuals with currencies on the foreign exchange market through the use of systems on their own trading banks work before the advent of the Internet and e-commerce. These systems require up to $1 million for opening an account. Advances in online technology, today investors with only a few thousand dollars have access to the Forex market 24 hours a day and about 5 days and a half week.
The Forex market is a market of money without stop, where currencies of Nations are called negotiated Forex brokers typically through intermediaries. Their currency is bought and sold in local and global markets stable and simultaneous movements, while dealers, increase or decrease the value of an investment in the currency. the Forex market conditions can at any time in response to events in real time, so even very volatile and fragile market is also considered. The Forex market conditions are not the same thing, that change every second.
Foreign exchange market, combined exploitation ridiculed scholarship and New York, London and Tokyo of futures. Depending on the size and scope, it is much larger than in other markets. Statistics show that long-term cash transactions of aircraft, the place change on the interbank market. 51% of the market is in cash, followed by 32% in currency swap transactions in currency transactions. Direct FX represented another 5% of sales per day, with selection on interbank currency transactions “, making a further 8%.» Therefore divided the accounts of the interbank market by 96% of the world market of currencies, the remaining 4% under the global futures markets.
For the operators, operations is an alternative to the stock market. While there are thousands of stocks to choose from, there are a few important pieces for the trade (dollar, Yen, pound sterling, Swiss franc and euro the most popular). Also a lot more influence on trading in shares provides operations, and the minimum to start investments is much lower. This choice of flexible working hours (change operations that occur within 24 hours of the day) to and you have the reason why many operators of securities in the trading day rallied.