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Informative Articles

A Beginner’s Guide to FOREX
FOREX is the abbreviation for the Foreign Exchange market. FOREX is basically an international exchange market where currencies from all over the world are bought and sold for profit. The market today began in the 1970’s. FOREX is a very unique...

FOREX: What Is It And How Does It Work?
The Foreign Exchange market, also referred to as the "FOREX" is the biggest and largest financial market in the world. It has a daily average turnover of US$1.9 trillion- just imagine that amount of money! Don't you want to join this...

Go Public Young CFO, Go Public
Go Public Young CFO, Go Public By William Cate Going West in the 1850s was the American path to business success. It made the railroads the dominant economic power in America in the 19th Century. Going overseas was the business success strategy...

Hawala, or the Bank that Never Was - Part I
I. OVERVIEW In the wake of the September 11 terrorist attacks on the USA, attention was drawn to the age-old, secretive, and globe-spanning banking system developed in Asia and known as "Hawala" (to change, in Arabic). It is based on a short...

"How To" Start Trading The Forex Market?
What Is FOREX or FOREX MARKET? PART I The Foreign Exchange market (also referred to as the Forex or FX market) is the largest financial market in the world, with over $1.5 trillion changing hands every day. That is larger than all US equity and...

"How To" Start Trading The Forex Market? (Part 5)
What are *PIPS* ? Currencies are traded on a price/ point (pip) system. Each currency pair has its own pip value. When you see a FOREX price quote, you'll see something listed like this: EUR/USD 1.2210/13 Explanation: a)...

Investors - What Separates the Good Traders from the Bad Traders?
There are many forms of investing online. While I can give you a list that is a mile long, these are the most common forms of successful investments. Some of the following know how to invest terms are: 1. Option trading 2. Future trading 3....

Online Forex
Q1: When you consider that the foreign exchange market has become the world's largest financial market, with over $1.5 trillion USD traded daily, where does it go from here? A1:The FX market is unique, in the UK there is no central exchange, we...

The China Bubble
The China Bubble By William Cate Bubbles are good speculations. They are terrible long-term investments. If you sold your DotCom shares by March 2000, you did well. If you still own those shares, you are reading this article from the Poor House. If...

What is a Forex Broker?
The Currency / Foreign Exchange market is the world’s largest and most dynamic market. Nearly $1.8 trillion is traded every day. The word Forex is derived from the words Foreign Exchange. A Broker is an individual or firm that acts as an...

 
 
 
FOREX Trading

Copyright 2005 Dave Markel

The Foreign Exchange market, also referred to as the "FOREX" or "FX" market is the largest financial market in the world, with a daily average turnover of US$1.9 trillion - thirty times larger than the combined volume of all the United States equity markets. The FOREX website defines Foreign exchange as "the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY)".

The FOREX market was launched in the 1970s, when free exchange rates were introduced. Only the participants of the market determine the price currencies against one another. This depends on proceedings from supply and demand. Influence by a single participant in the market is practically out of the question. This is because FOREX is more of an objective market. If some of its participants would like to change prices for some manipulative purpose, they would have to operate with tens of billions dollars.

FOREX is part of the bank-to-bank currency market known as the 24-hour Interbank market. The Interbank market literally follows the sun around the world, moving from major banking centers of the United States to Australia, New Zealand to the Far East, to Europe then back to the United States.

Speculations on the FOREX exchange market give the biggest profit of all legal types of transactions. Everyday fluctuations of currencies allow FOREX traders an opportunity to make money on these changes. It is the world's biggest liquid financial market. Transactions are conducted all over the world via telecommunications 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday. In every time zone across the world there are dealers who will quote currencies. The major currencies traded in FOREX, are

 


Euro (EUR), Japanese Yen (JPY), British Pound (GBP), and Swiss Franc (CHF). All of them are traded against the US dollar (USD).

There are many advantages to trading in the FOREX market. These include: * The biggest number of participants and the largest volumes of transactions * Superior liquidity and speed of the market: transactions are conducted within a few seconds according to online quotes * The market works twenty four hours a day, five working days a week * A trader can open or close an account for any amount of time he wants * No restrictions as accounts with very low account balances. * There are no fees. The only payment is the difference between buying and selling prices. * Opportunities exist to achieve a larger profit from an investment * It is possible to turn FOREX trading into a professional and qualified activity. * It is possible to make deals any time at the convenience of ones home * It is not obligatory to buy some currency first in order to sell it later. * It is possible to open positions for buying and selling any currency without actually having it, usually involving established Internet brokers. * The superior liquidity allows the traders to open and/or close positions within a few seconds. * The time of keeping a position is arbitrary and has no limits - from several seconds to many years * FOREX speculative interests can be satisfied without a real money supply, which in turn decreases overhead costs for money transfers. * It gives an opportunity to open positions with a small account in US dollars, buying and selling a lot of other currencies. * Most transactions must continue, since currency exchange is a required mechanism needed to facilitate world commerce.

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For more great information on FOREX Trading visit http://for-more-info.com/forex/forex-intro.html