This first step allowed investors to exchange their weapons, but a new market would soon open up to them: the foreign exchange market.For decades, it enables banks to buy and sell currencies. The currency market has become the first financial market in the world with over one trillion dollars traded each day. It is far from the small 25 billion traded daily in New York. Forex is definitely the market par excellence.
Forex is a market for trading currencies. When a company acquires a property abroad, it must pay in local currency. To obtain local currency, it must exchange its own currency in foreign currency. The company will then ask the bank that exchange, that exchange will be made on the foreign exchange market. But over time, the share of trading in the foreign exchange market on this type of business continues to decline less than 15% so far. Most transactions are now conducted in a purely speculative purpose, in interbank.
Foreign Exchange Market is a complex market where there is a multitude of financial products tradable but where the dollar reigns supreme. The dollar remains the most traded currency on the Forex with 89% of trade (against 37% for the Euro), but attention on the Forex, it is not enough to buy or sell the dollar. The foreign exchange market is working in pairs.
The investor acquires a currency relative to another. So you have to play the dollar against currencies such as USD / EUR. The investor hopes that the U.S. economy is in better shape than the European economy. The three-letter currency split in two: the first two letters denote the country, the third currency. To USD United States dollar and, to JPY: Yen and Japan. The major currencies traded on Forex are the U.S. dollar (USD), euro (EUR), the Yen (JPY), Pound Sterling (GBP), Swiss franc (CHF), Canadian dollar (CAD), the Australian dollar (AUD) and New Zealand dollar (NZD).
Through its e-Forex is open 24h/24, 5 days out of 7, an amplitude of openness that allows investors to react immediately to news. The global nature of the Forex and the quantities involved explain that the foreign exchange market is controlled by any player. No player (banks, governments, etc..) Can have a significant impact on the Foreign Exchange Market. While central banks may intervene occasionally, but it does not really impact on the evolution of long-term market. Only the economic policies of lasting influence Forex.
The opening of the Forex the largest number with the arrival of new brokers and allows everyone to easily invest in the economic health of a country. Forex is still a very dangerous market to them in closer. At the time money market and fixed exchange rate, George Soros was able to get one pound sterling or the EMS European Monetary System. At the time, the policies had set the exchange rate in an arbitrary manner and the economies no longer at this rate. The drop was inevitable.
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Unlike traditional stock brokers, brokers on the Forex does not pay via brokerage. Their remuneration is based on the spread, the difference between the price and the purchase price for sale. The broker maintains a range of ratings between a bid higher and one lower sales. You can find this course of buying and selling on the front of the brokerage firms that publish the price of currencies. The spread is therefore proposed a criterion for determining choice.
Forex is a market in which investors must pay. The evolution of the global economy directly influence the other markets: stocks, bonds, etc... A major financial crisis can cross borders in a few seconds, the actions will not escape the crisis even if the company is strong.
Forex is a market in which investors must pay. The evolution of the global economy directly influence the other markets: stocks, bonds, etc... A major financial crisis can cross borders in a few seconds, the actions will not escape the crisis even if the company is strong.
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