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Forex (Forex) Is The Foreign Exchange Market
Nowadays, the Forex market many, these days, is associated with the ability to quickly and easily earn money, something like a casino. Because Forex is, by definition, the market of foreign currency, and more precisely, the market of purchase and sale of national currencies and the bulk of the "players" there are traders who have small amount on hand and connected to the Internet, hence the obvious popularity and interest in this kind of business, especially in our time, which affect the effects of the global crisis.
With a short excursus into the history we can learn that the first Forex (in English. FOReign Exchange – foreign exchange) was held in 1973 On Jamaican auction. Of course, now currency trading has changed, thanks to the advent of Internet technology, rule changes and standards in this area. Still, the main idea has not changed – this is to maximize profits from the sale of currency. Traditional, in our understanding, a platform for trade does not exist, as in the case of the securities market with their geographical exchange in London, new York, Tokyo or Moscow.Platform for trading now has moved to the global network and has become a truly international, democratic, where players often do not know each other in person.
The mention of Forex traders sounded by the way, because being the international currency market and not territorial, the object of sale, i.e. the pair (eg. EURO/USD and RUB/USD), you can have multiple quotes. This may be due to the influence of players like foreign banks. Although fluctuations in the quotation of the currency pair minor, they can play trader – another active player the market. Of course, the trader still what currency pair to work it, because its main objective is to obtain maximum benefit from the purchase and sale of foreign currency.
Another feature of modern transactions in the Forex is the lack of an intermediary on behalf of the exchange: all transactions take place directly between the trader and seller of currency.
As you know, the players or participants on the Forex exchange are the sellers, they are also often buyers of the currency – that ordinary people, in the face of traders, and banks. In addition, given that ordinary traders are mostly on more or less large deals (to maximize profit), which require sometimes significant amounts on the stock exchange trading there's always a group of people – brokers, who are ready to lend money, with this Commission percentage or "spread". Typically, this spread is set by the broker.The difference from best buy and best sell a currency and there is a net "production" of the trader after deduction of commissions.
|Category: Forex | Added by: (29.10.2017)