Forex is an international foreign exchange market and is part of the world market. On the Forex market, foreign currencies with specific delivery dates are bought and sold.

The currency market does not have an address or head office. Forex is a global computerized trading system with a broad flow of financial flows. Foreign currencies, stocks, oil and metals are traded on the Forex market. Therefore, in addition to commodity and stock markets, there is a global currency market, which is open 24 hours a day for 5 days (except weekends and holidays), where almost all trade is done via the internet. The main Forex participants are all commercial and central banks and companies involved in export and import activities.

The forex market is a decentralized system where members are involved with each other. The development of modern telecommunication facilities has led to the establishment of a new type of trade, so that it is called long-distance trading which was made with the help of an electronic transaction system and the electronic transaction system slowly replaced traditional telephone transactions. In the forex market trading transactions to buy currencies may be done, for example Euro (EUR) for Swiss Franc (CHF) or Japanese Yen (JPY) Transactions and movements on the Forex market determine the ratio of world currencies that can be freely converted.

All currencies involved in trading are shown on the market with floating rates. Trading on the Forex market has a staggering volume with a daily turnover of three trillion US dollars, which is almost five times the volume of trading on the stock market. Over the past few years, working on Forex has become more popular, and currently working on Forex is a type of work that is widespread and profitable. About 80% of transactions carried out have speculative yield targets that benefit from differences in the value of currency quotations. The Forex market is the most extensive platform among the existing platforms. Participants have the opportunity to collect large profits in a short period of time. Usually, there is a small initial capital needed to trade because the currency as a trading instrument has a maximum level of liquidity.

Therefore, on the Forex market it is impossible for agents in certain transactions not to be present. The Forex market is more popular than the stock market. However, that does not mean that Forex trading is much easier than trading with stocks. The reason why Forex trading is easier than stocks is the insignificant amount of initial capital described earlier. Not everyone can enter the stock market; on the contrary, on Forex everyone can start working with a small deposit of US dollars. If needed, the broker will provide a margin for traders. Of course, profits are not too high on the Forex market, but the risk of losses is small.



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  1. Pingback: Introduction to Currency Correlation in forex trading. - The Best Forex Signals 2019, No Repaint.

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