What Is Forex Market?

What is Forex Market?

You've probably heard of others who have made money in the Forex market and wondered - what is Forex? If you are interested in understanding the basic principles of foreign currency exchange, you should start with this article.

The FOREX market is the largest financial market in the world.

When created in 1977, the daily turnover was approximately U.S. $ 5 billion. Today, that figure has risen to the 1.5 trillion dollars a day.

If we add the volumes traded in all the world's securities markets, we would see that volume means a small part of what is traded on the FOREX market.

The Forex market is the place where currencies are traded (currencies are money that is used as a medium of exchange). In other words, is the place to buy and sell foreign currencies. In the Forex market all currencies are traded in real time. Trading foreign exchange means that there are always two simultaneous transactions taking place at a time. If you are buying a currency is selling well. To better understand this concept, think that currencies are the goods you are buying and at the same time the method you are paying for goods. Since the Forex market is the place where currencies are traded in real time, people exchange one currency for another and make a profit for that transaction. The gains are obtained when one is able to specify what currency value will increase at the end of a predetermined period (such time periods can be short or long).

The daily operations involving the purchase / sale of foreign currency immediately from an operation which applies plataformade analysis or technical analysis charting.

FOREX in the future:

The growth being experienced FOREX is rapid, reaching an unparalleled level of daily transactions. And this growth shows no sign of stopping. On the contrary, for the next decade is expected to increase the level of daily trading in FOREX close to 300%, also estimated that the daily trading volume in the currency markets will increase at a rate of 25% annually in coming years .

His enormous liquidity and continuity that has become a FOREX in the best market in the world. The reason why is continuous operations is ...

The Forex market is open 24 hours a day, five days a week and is based on four major cities: New York, London, Sydney and Tokyo. The Forex market is open to individuals over 18 years of age. Trading in the Forex market can seem complicated, but actually is not. The Forex can be easily understood without prior experience in finance or economics. It's an exciting challenge that stimulates thought and is full of opportunities.

Some basics of Forex:

· The first currency is established in a currency pair is called "base currency".

· The "base currency" is usually the U.S. dollar. Operators generally trade the U.S. dollar against another currency, called the "counter currency".

· The currencies are traded in pairs. For example, the USD / JPY (U.S. Dollar / Japanese Yen) are quoted as follows: USD / JPY is equal to 2.5 (This means that 1 U.S. dollar can buy 2.5 Japanese yen).

· When a quote increases, it means the value of the "base currency" has risen and the value of the "counter currency" has weakened. For example: If the USD / JPY was equal to 2.5 but is now equal to 2.6, this means that the dollar has strengthened (because 1 U.S. dollar can now buy 2.6 JPY, unlike the 2.5 JPY it could buy in advance) .