Forex (English Forex market, FX-market) - a market in which transactions are made onselling and buying currencies in order to profit by changing the rates of these currencies. Forex is the largest financial market in the world, its turnover significantly exceedsturnover of stock and other markets; in connection with this, there is high liquidity on Forex, and this market attracts many traders, both beginners and professionals.
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It is on this exchange that almost all the iconic currencies of the planet are represented.This is where traders get at their disposal an impressive array of different tools that increase the likelihood of profitable contracts. It is the Forex exchange invites all Internet users to try their abilities in shopping operations with currencies remotely.
By and large, the definition of "exchange" is not entirely correct in relation to this large-scale project. Forex is an over-the-counter interbank system of independent electronic trading which can be any natural or legal person.
A bit of history - what is Forex and how it all began
Following the abolition by the US government on August 15, 1971 of pegging the US dollar to the gold standard, world currencies floated freely. Such a landmark decision inevitably created the conditions for fundamentally new financial operations - international currency trading. World Money Independence of the value of gold allowed to sell and buy foreign currency assets of different countries in accordance with supply and demand.
In 1978, the International Monetary Fund officially recognized the possibility of world currencies not pegging to the dollar and gold, marking the beginning of free trade with floating rates. In this situation, most importers and exporters became participants in the new foreign exchange market, which has a significant impact provided by the Central Banks of the most developed countries. With the development of Internet technology, most operations moved to virtual space, forming the main platform for the sale. Currency, called Forex (from the English Foreign Exchange - foreign exchange).
The official birth date of this market is 1973, in which the Bretton Woods terminated an agreement fixing exchange rates. And already in 1977, the daily turnover of a new currency market has reached the level of 5 billion US dollars. Daily turnover in 2017
is over 6 trillion. american dollars.
Five Key Forex Exchange Priorities
- Conclusion of transactions using more than 50 major world currencies.
- 24 hours work 5 days a week.
- A wide range of trading tools.
- An impressive range of free and paid tutorials.
- Intuitive multilingual software platform interfaces.
And also, there are demo accounts on Forex, with which beginners can learn all the basic
the nuances of concluding contracts remotely. This project works within the framework of international law,
collaborating with the world's largest banks and exchanges. In this system constantly new
options and features that facilitate the task of concluding profitable contracts. Leverage
up to 400: 1 allows you to work with large lots without a large starting capital.
Top Ten Forex Facts & Concepts
- Currency trading on Forex is carried out using dealing centers (brokerage platforms),
each of which offers traders its own rules, opportunities and privileges.
- Registration on the selected brokerage platform will require the input and confirmation of reliable personal data.
- You can open an account on Forex in almost any popular currency.
- The exchange starts on Monday at 0:00 and closes on Saturday at 0:00. In winter, the schedule is shifted by 1 hour: from 1:00 to 1:00.
- On Forex, they work with the currencies of different states, each of which is indicated by three
in English letters (US dollar - USD, euro - EUR, Swiss franc - CHF, British pound - GBP, etc.).
- The most popular pairs are 7 major pairs, which include the US dollar and
other currencies of developed countries: EURUSD, USDJPY, GBPUSD, USDCAD, USDCHF, AUDUSD, NZDUSD.
- The essence of most transactions with currency pairs is to sell one currency at the highest price and
buying another - at the lowest cost. For a better understanding, you can just talk about
profitable exchange of currencies one to another in currency pairs.
- 2018 Forex is actively trading alternative currencies (cryptocurrencies),
among which the leaders are Bitcoin, Ethereum, Litecoin and Altcoin.
- To maximize profits with a small deposit, traders can
use leverage - borrowed capital provided by a brokerage platform.
If you are given a leverage of 1: 100, then if you have $ 100 on deposit,
You can purchase a lot worth $ 10,000.
- All permitted operations in the Forex currency market can be carried out as quickly as possible.
remotely without any restrictions. Protection of personal data and deposit
implemented using advanced encryption technology.
In order to conclude successful transactions, traders use two main analytical methods:
- Fundamental analysis - taking into account all economic and political factors,
capable of influencing exchange rates (inflation, unemployment, interest rates of central banks, growth and fall of GDP, etc.).
- Technical analysis - monitoring of quotation charts with a forecast of course behavior in the near future.