Foreign Exchange Market , or better known as Forex , is a vast market in the world and has many advantages compared with other financial markets . In the forex market , the instrument is traded foreign exchange (currency ) . Unlike most markets , transaction activity in the Forex market is always open 24 hours , 5 times a week . Enough for you to obtain the gain and away for the weekend . Daily trading Forex is worth about U.S. $ 1.5 trillion . By comparison , the United States have an average of U.S. Treasury bond market $ 3 trillion per day and American stock markets around U.S. $ 100 billion per day .
First established in 1971 with the abolition of fixed currency exchange . Currency to be " floating " which is determined by the supply and demand . Then forex continued to grow throughout the year . Since the era of advanced technology increases , the forex market was helped by technological advances . Forex Trading volume grew too start at U.S. $ 70 billion per day , up to now , trading Forex is worth U.S. $ 1.5 trillion per day .
Forex trading involves trading of more than 5,000 institutions . Among other international banks , central government banks ( such as the U.S. Federal Reserve ) , and commercial companies , as well as a broker for all types of foreign currency exchange . Forex market has no centralized location specifically for Forex . Each region has a major trading center but broadly representing countries in the zone . In America forex center is represented by New York . In Europe represented by Britain with its center in London , the French headquarters in Paris , while Germany is in Frankfurt trading center . For the Asian region , there are three states as Forex trading centers . These countries are Japan with trading centers in Tokyo , China was in Hong Kong , and the last trade is Singapore .
Because of the sophistication of the technology , forex transactions can be over the phone or internet . Forex business can be relied upon in the purchase and sale of products in other countries , but most of the activity comes from the Forex currency traders who use it to generate profits from small movements in the market .
The forex market does not have specific criteria for anyone to participate in forex trading . Although the major players in the world of forex is a company , institution , and Air banking big capital . However, individual traders are allowed to trade . Previously there was a minimum transaction size and traders are required to meet strict financial requirements . With the advent of trading via the Internet , the rules have been changed to allow large interbank units to be broken down into smaller lots and more .
Each unit standard lot is worth (U.S. $ 100,000) and can be used by traders who are borrowing from the broker to use capital guarantee $ 1,000 to 100:1 leverage for trading. So with leverage of 100:1 means of capital deposit of U.S. $ 1,000 will allow you to control the exchange of U.S. $ 100,000. There are many advantages to trading in Forex, including:
1. liquidity
The size of the Forex market is very large allowing all traders can trade. International banks continue to provide bid and ask quotes from the high number of transactions each day means there is always a buyer or a seller for any currency.
2. accessibility
The Forex market is open 24 hours a day, 5 days a week. The market opens Monday morning Australian time and closes Friday afternoon New York time.
3. Market openness
Currency fluctuations are usually caused by changes in the national economy. News about these changes is accessible to all people at the same time. All traders will get real time prices in the same time all over the world.
4. There is no commission fee
Brokers do not pull or charge their services to traders. They get their profit by setting the "spread".
The forex market is fluctuating constantly bring new profit potential over time. Even small changes can yield huge profits due to a large amount of money involved in each transaction. At the same time, can be a relatively safe market for the individual investor.
First established in 1971 with the abolition of fixed currency exchange . Currency to be " floating " which is determined by the supply and demand . Then forex continued to grow throughout the year . Since the era of advanced technology increases , the forex market was helped by technological advances . Forex Trading volume grew too start at U.S. $ 70 billion per day , up to now , trading Forex is worth U.S. $ 1.5 trillion per day .
Forex trading involves trading of more than 5,000 institutions . Among other international banks , central government banks ( such as the U.S. Federal Reserve ) , and commercial companies , as well as a broker for all types of foreign currency exchange . Forex market has no centralized location specifically for Forex . Each region has a major trading center but broadly representing countries in the zone . In America forex center is represented by New York . In Europe represented by Britain with its center in London , the French headquarters in Paris , while Germany is in Frankfurt trading center . For the Asian region , there are three states as Forex trading centers . These countries are Japan with trading centers in Tokyo , China was in Hong Kong , and the last trade is Singapore .
Because of the sophistication of the technology , forex transactions can be over the phone or internet . Forex business can be relied upon in the purchase and sale of products in other countries , but most of the activity comes from the Forex currency traders who use it to generate profits from small movements in the market .
The forex market does not have specific criteria for anyone to participate in forex trading . Although the major players in the world of forex is a company , institution , and Air banking big capital . However, individual traders are allowed to trade . Previously there was a minimum transaction size and traders are required to meet strict financial requirements . With the advent of trading via the Internet , the rules have been changed to allow large interbank units to be broken down into smaller lots and more .
Each unit standard lot is worth (U.S. $ 100,000) and can be used by traders who are borrowing from the broker to use capital guarantee $ 1,000 to 100:1 leverage for trading. So with leverage of 100:1 means of capital deposit of U.S. $ 1,000 will allow you to control the exchange of U.S. $ 100,000. There are many advantages to trading in Forex, including:
1. liquidity
The size of the Forex market is very large allowing all traders can trade. International banks continue to provide bid and ask quotes from the high number of transactions each day means there is always a buyer or a seller for any currency.
2. accessibility
The Forex market is open 24 hours a day, 5 days a week. The market opens Monday morning Australian time and closes Friday afternoon New York time.
3. Market openness
Currency fluctuations are usually caused by changes in the national economy. News about these changes is accessible to all people at the same time. All traders will get real time prices in the same time all over the world.
4. There is no commission fee
Brokers do not pull or charge their services to traders. They get their profit by setting the "spread".
The forex market is fluctuating constantly bring new profit potential over time. Even small changes can yield huge profits due to a large amount of money involved in each transaction. At the same time, can be a relatively safe market for the individual investor.
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We love the world of forex. Sharing information about forex is our way of showing happiness. Therefore we made a "Campus of FOREX" as a portal to learn forex.
Forex is not something to fear, but fear when you are not able to control yourself in the forex or whatever. When profit in forex it becomes your personal responsibility, and when you lose in forex it also becomes your personal responsibility. Forex simply as a facility to achieve financial freedom, no more no less. Forex is a place to think realistically.
Being successful in forex, it means you are committed to establish a disciplined and thoughtful character. Forex may be the best mirror of your true character. Forex is just forex.
Happy reading.
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