subject: What is Forex's Market? [print this page] What is Forex's Market? What is Forex's Market?
What is Forex's Market? ...
You've probably heard of others who have made money in the Forex market and wondered - what is Forex? If you are interested in understanding the basic principles of foreign currency exchange, must begin with this article.
The FOREX market is the largest financial market in the world.
When formed in 1977, the daily turnover was about U.S. $ 5 billion. Today, that volume has risen to the 1.5 trillion dollars a day.
If we add the volumes traded in all stock markets around the world, we see that this volume represents a small part of what is traded on the FOREX market.
The Forex market is the place where currencies are traded (currencies are money that is used as a medium of exchange). In other words, is the place to buy and sell foreign currencies.Forex market all currencies are traded in real time. Trading foreign exchange means that there are always two simultaneous transactions taking place at a time. If you are buying a currency, also is selling. To better understand this concept, consider that currencies are goods you are buying And while the method with which you are paying for goods. Since the Forex market is the place where currencies are traded in real time, people exchange one currency for another and make a profit on that transaction. The gains are achieved when one is able to specify what currency value will increase at the end of a predetermined period (such time periods can be short or long).
The daily operations involving the purchase / sale of foreign currency immediately from a
trading platform where we apply the analysis charting or technical analysis.
FOREX in the future:
The growth being experienced FOREX is rapid, reaching an unparalleled level of daily transactions. And this growth shows no signs of stopping. On the contrary: for the next decade is expected to grow the level of daily transactions in FOREX close to 300%, also estimated that the daily trading volume in foreign exchange markets will increase at a rate of 25% annually in coming years .
Its huge liquidity and continuity that has become a FOREX market the best in the world. The reason it's continuing operations is ...
The Forex market is open 24 hours a day, five days a week and is based on four major cities: New York, London, Sydney and Tokyo. The Forex market is open to individuals who are 18 years of age. Trading in the Forex market may seem complicated, but really is not. The Forex can be easily understood without previous experience in finance or economics. It's an exciting challenge, which stimulates thinking, and is full of opportunities.
Some basics of Forex:
The first currency is established in a currency pair is called "base currency".
The "base currency" is usually the U.S. dollar. Operators generally trade the U.S. dollar against another currency, called the "counter currency."
The currencies are traded in pairs. For example, the USD / JPY (U.S. Dollar / Japanese Yen) are listed as follows: USD / JPY equals to 2.5 (This means that 1 U.S. dollar can buy Japanese yen 2.5).
When a price increases, means that the value of the "base currency" has risen and the value of the "counter currency" has weakened. For example: If the USD / JPY was equal to 2.5 but now equals 2.6, this means that the dollar has strengthened (because 1 U.S. dollar can now buy 2.6 JPY as opposed to the 2.5 JPY it could buy in advance) . For more information go to: www.forexcentury.com
