Posted by: admin : Category: What is FOREX or FOREX MARKET ? Part I
In the Foreign Exchange market (also referred to as Forex or FX market) is the largest financial market in the world, with more than $ 1.5 trillion changing hands every day.
Larger than all U.S. equity and Treasury markets combined!
Unlike other financial markets that operate in a centralized location (ie stock exchange), the market in the world Forex does not have a central location. This is a global electronic network of banks, financial institutions and individual traders, all involved in the purchase and sale of the national currency. The main features of the Forex market is operating 24 hours a day, according to the opening and closing of financial centers in countries around the world, starting each day in Sydney, then Tokyo, London and New York. At any time, in the location, there are a seller and buyer, so that the Forex market the most liquid market in the world.
Traditional access to the Forex market has been made available only to banks and other large financial institutions. With advances in technology over the years, but the Forex market is now available to all people, the money from the bank for managers to individual traders trading retail accounts. Time to get involved in this interesting, the global market has never been better than now. Open an account and become an active player in the biggest market on the planet.
Forex Market is very different from trading the currency market in the future, and much easier, than trading stocks or commodities.
Are you aware or not, you have to play a role in the Forex market. The simple fact that you have money in your pocket you create investor in currency, especially in the U.S. Dollar. By holding U.S. Dollars, you have not chosen to hold the currencies of other countries. You purchase shares, bonds or other investments, along with money deposited in your bank account, is an investment that depends on the integrity of the value of their denominated currency ¨ the U.S. Dollar. Due to changes in the value of the U.S. Dollar and the resulting fluctuations in exchange rates, your investment value may change, affecting your financial status overall. With this, it should not surprising that many investors are taking advantage of the fluctuation in Exchange Rates, using the volatility in the Foreign Currency market as a way to raise capital.
Example: suppose you have to buy $ 1000 and if the Euro exchange rate is 1.50 dollars to euros. You will then have 1500 Euros. If the value of Euro against the U.S. dollar increased then you would sell (exchange) your Euros for dollars and dollars have more than you started with.
Example:
You may see the following:
EUR / USD last trade 1.5000 means
One Euro is worth U.S. $ 1.50 dollars.
The first currency (in this example, the EURO) is referred to as the base currency and the second (/ USD) as the counter or quote currency.
FOREX that plays an important role in the world economy and will always have a great need to exchange currency. International trade increases as technology and communication increases. During the international trade there is, there will be a FOREX market. FX market that has been there, so countries such as Germany can sell products in the United States and can accept euros in exchange for U.S. Dollar.
RISK WARNING:
Currency risk trading
Margined currency trading is a very risky form of investment and is only suitable for individuals and institutions capable of handling the potential losses it entails. Account with the broker that allows you to trade foreign currencies that are leveraged basis (up to approximately 400 times your account equity). The funds in the account that the maximum leverage of trade may be entirely lost if the position (s) held in the account experiences even one percent swing value. With the possibility of losing one’s entire investment, speculation in the foreign exchange market should only be done with risk capital funds that, if lost, will not significantly affect the investor’s financial welfare.
June 20th, 2009 at 8:20 pm
thanks for comment bro . .
and nice articel.. sory my english is bad
July 2nd, 2009 at 12:57 am
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July 6th, 2009 at 9:45 pm
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