Saturday, January 20, 2007

About Forex!

The Foreign Exchange Market (FOREX)-Forex is an
acronym for FOReign EXchange and is the worldwide cash inter-bank or
inter-dealer market that uses a floating exchange rate system. Most
people have never heard of Forex. Yet, it is the world's largest
financial market with an estimated daily average of more than $1.5
TRILLION. Some say that it would take the entire New York Stock
Market about 3-4 months of daily trading to equal one day of trading
in Forex!


The spot Forex market is a $1.4 trillion daily market, making it the largest and most liquid market in the world. This market can absorb trading volume and transaction sizes that dwarf the capacity of any other market. If you compare this to the $30 billion per day futures market it becomes clear that the futures markets provide only limited liquidity.

There is always buyer and seller in Forex market. The Forex market absorbs trading volumes and per trade size which dwarfs the capacity of any other market. On the simplest level, liquidity is a powerful attraction to any investor as it suggest the freedom to enter or exit the market at any time. Forex traders benefit from the ability to respond to breaking news immediately. There is no other market or investments that you can ever make an exit exactly at the time you wish to.

The Forex market is open 24 hours daily. When Asia market is close, the European market start follows by the USA market and continue by Asia market again the next day. Thus, this allows Forex traders to take positions regardless of the hour and locations.

Forex (Over the the Counter) he does not is having the definite place of location which folds oneself from the net joint with me with the help of as well as investors individual telephone link and different of electronic systems of turn banks, brokers, enterprises. The lack of definite place of physical location of monetary market makes possible him functioning 24 hour on day by 5 days in week. Market this hugs his range the majority of countries of world and they to the largest centres of monetary transactions belong Londyn, New York and Tokio.

The market monetary Forex it is the the largest financial market of world. The size of day turns crosses 1,5 billion the USD, what the state the 300% of total turns on American market of action and bond.

What is Forex ??

It it was it been possible was to distinguish several basic groups of participants of monetary market:

- Protecting (hedgers) - enterprises deal with activity export in this group majority make up - importable or funding in strange currencies, which is intention limiting risk. The averages and large firms of foreign trade are in majority this it yet it in last period in relationship with growth of naturalperson's foreign debts was it been possible was to this group to number also private investors.

-speculators (speculators) - they are this both firm how and natural person who invest in aim the centres the earning on differences of prices of in the time contracts

- Arbitragers - investors about large capital to this group rank, who they contain transactions on minimum two markets in aim the utilization of course differences simultaneously.

- The animators of market ( the market makers) - then the intermediary in monetary turn, in transactions among speculators institutions and they are protecting then the banks, brokers, monetary dealers or the internet platforms of turn.

The Forex market has become the world's largest financial market with over 1.5 trillion USD traded daily. Forex is part of the bank-to-bank currency market known as the 24 hour Interbank market. The Interbank market moves from major banking centers of the United States, Australia, New Zealand, the Far East and Europe.

The Forex market is so vast and has so many participants that no single entity, not even a central bank, can control the market price for an extended period of time. Even interventions by mighty central banks are becoming increasingly ineffectual and short lived. Thus central banks are becoming less and less inclined to intervene to manipulate market prices.

1 comment:

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