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Major players in currency exchange Forex
Global Forex currency exchange is a powerful player in the global financial market, enabling all its participants to exchange currency in accordance with the constantly changing exchange rate.
Forex provides cash turnover of more than $ 3 trillion. $ . a day is significantly more turnover in other foreign exchange markets. To profit in the Forex market is not only investment companies, banks and other financial magnates, but also individuals.
Importers buy foreign currency for the purchase of goods abroad and selling them in their country. In turn, the exporting companies, receiving revenue in foreign currency, make it exchange for the national to cover costs. In connection with currency fluctuations, trade companies are constantly putting yourself at risk, so Forex allows them to hedge against these fluctuations and risk of possible losses.
All financial transactions are conducted through financial institutions: Central, commercial, investment banks, and brokers and dealers, insurance companies, pension funds, multinationals, etc. the size of the contract, with subsequent submission currency on the second business day, equal to 5 million US dollars. And the cost of the conversion payment is from 60 to 300 dollars, so Forex is not producing the direct conversion of small amounts, it is cheaper to contact the Bank or currency broker.
The object of transaction is usually Forex currency pair is the two currencies that form the exchange rate. The pair includes encoding and currency represents the base currency is the quote currency. In particular, the base currency is bought and sold for currency, which expresses the price of the base currency. For example, in currency pair - EUR - USD - Euro is the base currency and dollar is the quote currency. Today, the U.S. dollar is involved in 90% and the Euro in 37% of all trading operations on Forex.
Currency quotes Forex display the value of the exchange rate, often the quote shows how the number of national currency is contained in one US dollar.
|Category: Forex | Added by: (29.10.2017)