What is Forex?

The word Forex is the abbreviation of English words – Foreign Exchange, which means foreign exchange market. Forex (FX) is the exchange or change one currency for another, exactly defined by the purchase price, which is called Exchange rate (Exchange rate). Forex is the largest financial market in the world, whose volume exceeds all U.S. securities market together. His strength is best illustrated by the fact that it came after extensive research conducted 2004. year,and which found that daily average on the FX market turnover 3.5 trillion U.S. dollars.When you take the fact that the traffic since 2001. until 2004. The large rose 57% to get a clear picture of the force, the degree of expansion and the attractiveness of this market.This forces us guarantees almost unlimited liquidity, nor does any single financial market in the world. Forex market makes a network of over 4500 institutions and as such there is no one central place through which all transactions are carried out. Given such a structure, not simply to establish his tray size and strength, but we can assume that it is much stronger today than it was 2004th year. Price on the FX market is formed exclusively on the principle of the law of supply and demand. Due to his size and strength are disabled long-term manipulation of the price, even the strongest financial institutions such as the Central Bank. All of this ensures equal conditions for business for all participants.

There are several characteristics which make the FX market in a big advantage compared to other financial markets. The most important advantages are:

1. Unlimited liquidity (at any time you can open and close the account without waiting).
2. Great volatility (large oscillations).
3. Trading with a margin account with a leverage (leverage) size of 5:1 to 400:1
(operates with 400 times the amount of money from the deposited amount).
4. The opportunity to earn income to the rise, and fall in currency values
(short sell).
5. The market is open 24 hours a day, Monday through Friday.

6. The possibility of trading from any location (the only requirement is having a computer and internet         connection).

7. The lack of provision in order to open.

When trading with a large lever, a relatively small market movements, giving you the opportunity to small amounts, to generate large profits. However, you must be aware that trading with a large lever that you can achieve great profits, and losses, so be careful. All the mentioned features and advantages of this market are the basic reason why the Forex is so attractive and why millions population trader in FX market daily increasing.

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