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Why do we need the Forex market
In a network there are many job offers on Forex with promises of earnings and other benefits, but I guess to start I would like to know more about this market. What Forex, what is its purpose?
The easiest way Forex market compared to conventional exchanger on the street that allows you to quickly convert dollars into his or rubles, for example. Forex is also a currency exchanger, only completely different scale.
It is known that Forex is the most liquid market in the world, and this means that every day there is changing is the amount of money that does not circulate any more on the same trading platform. The minute banks, funds, corporations, private investors and so on, to buy and sell one currency for the other for a floating exchange rate.
Who sets the price in the Forex market? In fact, any specific person or firm responsible for the current prices of an asset in the foreign exchange market. The price is formed automatically on the basis of the law of supply and demand. When the demand at the current price is higher than supply, the price increases until the situation will not change.
Why you need a Forex market
If we, holding in fist $200, easily go to any exchanger and go, for example, rubles, it is a familiar operation to currency exchange. The Bank will not run with a suitcase full of money in another country, that would make billion-dollar exchanges with other financial institutions.
Forex unites the markets from all over the planet, which, by the way, it works round the clock. Here the exchange is a snap, thanks to trading platforms and exit of the trader into the market. The transfer of money from one account to another also takes seconds, and it means that huge companies and banks can exchange billions of dollars almost instantly.
Forex need to currency exchange, and the main participants in the trade it's mega-companies, cartels in which there is always a need for particular banknotes.
Private investors and traders is just, pardon the comparison, a flea on the body of a huge dog. The market functions on its own and not to say that its main function refers to a number of speculative, rather, it is about meeting the needs of the major players in a particular currency.
It turns out that we, individual traders, I just joined a large-scale exchange of currencies, using the fact that the market rate is changing all the time. Of course, the market price that we see in the terminal primarily depends on the banks, corporations and foundations, whose volume is huge. We with the scanty accounts (at the request of the banks) no impact on quotes do not provide, at least, separately.
Why the need for traders of Forex
Just and another question, why such a huge market where the daily turn trillions of dollars, the capital of many small investors? Here you need to remember that demand creates supply. Since there are people who would like to earn money due to the difference between the currency rates on Forex, then will be those who are on this need decides to earn himself.
So there are brokerage companies acting as intermediaries between traders and the interbank systems. To have your own access to the market without a mediator - a luxury that few can afford with individuals. All the Forex members with serious capital, and we are only trading through a broker.
Why you need a broker - everything is described in detail.
The international currency market can perfectly live without our several thousand dollars, but for traders Forex is the chance of a decent income, which may be absent in person for a variety of reasons.
I think now I understand why you need Forex, some of it benefits for traders and all the other participants in the trading process. It is the largest exchange in the world, through which you can for a few seconds to change one currency for another. At the same time, the market is a great opportunity for speculation than use hundreds of thousands of traders in all countries.
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| Category: Forex | Added by: (06.11.2017)
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| Views: 360
| Rating: 0.0/0 |
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