About Forex

Forex (Foreign Exchange Market) — the global market for the exchange of currencies at an agreed (world) rate. The volume of the market exceed the total amount of all other markets. Daily turnover of more than $ 3 trillion.

The Forex market has huge advantages over other markets. The most important from the point of view of investors, are the high liquidity and profitability, unlimited capacity, the ability to trade in both directions (BUY and SELL) without limitation, the lack of risk of individual countries (in fact, the deterioration in the individual countries but the separate income traders on market Forex).

According to international financial research, currency trading is one of the most promising and lucrative areas of business today.

Foreign exchange market is not a precisely defined place of trade. This is a huge network of interconnected financial centers, which are in a continuous 5/24 exchange rates.

Major currencies, which account for the bulk of all transactions on the FOREX, are today:

Designation Explanation
EUR Euro
USD U.S. Dollar
GBP British Pound Sterling
JPY Japanese Yen
CHF Swiss Franc
AUD Australian dollar
CAD Canadian Dollar

Less frequent are deals on the following currency pairs:

Designation Explanation
NZD New Zealand Dollar
SEK Swedish Krona
DKK Danish Krone
NOK Norwegian Krone
SGD Singapore dollar
ZAR South African Rand

The daily volume of foreign exchange transactions in the world is about $2.5-3 trillion. On the London market accounted for about 30% of the turnover, the share of the U.S. market — 20%, Germany — 10%. Transactions involving the U.S. dollar accounted for 70%. The share of electronic brokers now account for 15% of turnover of the FOREX.

Despite the fact that electronic auctions are gaining popularity only (no more than 15% of transactions), they are the most profitable (about 30% of the profits on the market) and we can say that in doing transactions online, you are at the peak of progress and dramatically increase your chances.

Work on the FOREX market can be evaluated as an example of personal financial investments, intellectual and moral strength. It is these resources allow you to earn money. In their absence — laziness, inability to make decisions, the weakness of the mind, the lack of will of the people lose money no matter how much money he has.

The main advantage of the foreign exchange market is that you can be successful with the power of his intellect.

Advantages of the Forex Market

The Forex market has high liquidity and profitability, trading volumes virtually unrestricted, and the ability to trade in both directions (BUY and SELL) allows you to receive unlimited income even on falling markets. We also mentioned that the risks of individual countries do not diminish, but rather increase the profitability of the market Forex.

You can also say that the foreign exchange market is characterized by the greatest volume of trading, the lowest cost of transactions, the fastest cash flows.

Currently, the foreign exchange market is the main source of income of the world’s leading banks, such as Chase Manhattan Bank, Barclays Bank, Swiss Bank Corporation and others

Classical speculation, George Soros was selling the British pound against the German mark, which for two weeks has brought a billion dollars of net profit, making Soros famous and launched his charity work.

The main advantages of the market FOREX (in order)

  • Liquidity. The Forex market operates with huge amounts of money and provides complete freedom when making trading virtually any size on at current prices.
  • Leverage. The main difference on the Forex market to work in other sectors of the financial market is the ability to purchase and sell foreign currencies in the absence of the full amount necessary for operations. For the transaction to the client must make a down payment (collateral margin), after which he has the ability to enter into transactions, which may have ten times the actual money invested. This is the so-called credit «leverage» (leverage). For example, posting on the account 10 thousand dollars with 1:100 leverage, you have the right to conduct operations in the amount of $ 1 million.
  • Hour access. The opportunity to trade 24 hours a day
  • Global and ubiquity. Making transactions is available from anywhere in the world where it is possible to connect to the Internet.
  • No commission. Brokers do not charge any fees related to the trading on Forex.
  • Another important feature of the foreign exchange market, as it does not seem strange — in its stability. Everyone knows that the basic property of the financial market — its sudden fall. But unlike stocks, currency, a large state can not impaired even by war. If the shares are worthless — it’s a failure. If the dollar collapsed, it just means that another currency has become stronger, such as the yen, which in a few months in late 1998 was a quarter more expensive relative to the dollar. And there were some days when the dollar’s decline was measured interest. But the market will not fall, trading continued as usual. This is the stability of the market and related business: the currency — an absolutely liquid commodity, and always will be traded.
  • Direction of the market Forex. Currency movement has a definite direction, which can be traced over a sufficiently long period of time. Each particular currency only shows her characteristic changes over time, which allows investment managers to manipulate the market FOREX.


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