What is Forex? What is Forex?
Forex (short for Foreign Exchange) is the currency exchange on world financial markets. Forex also often written as FX, currecy trading.
Forex market, also known as the foreign exchange market, the currency exchange market the world's largest. This is also a trading market with the highest liquidity in trading volume amounted to about 4 trillion USD / day. Trading Forex originate from? The starting point of Forex trading is 1971 after a some powers undergoing financial difficulties and began to float their currencies. To flexibility Bretton Woods agreement (1), the Smithsonian Agreement was signed, under which the currency can fluctuate more than before. Along with that, the efforts of the European market to get rid of dependence on the US dollar, the Smithsonian Agreement and the European Union have broken free. This signaling system for a floating exchange rate started to appear, where freelancers billion coins each depends on supply - demand market. And 1978, the floating currency has become mandatory. (1) Bretton Woods system: extended from 1944 to 1971, is used to unify the fixed exchange rate between major currencies and the US dollar, allowing Central Bank intervention in the currency market. The parties involved in the Forex market: 1. Bank of the country. 2. Commercial Bank: 3. The monetary funds: 4. Export Companies 5. The Forex Broker Center Why choose Forex? Transactions are not paid. Make purchases within 24 hours continuously, so you can choose the time that suits me the transaction. The transaction be done quickly, directly, rather than through an intermediary party. liquidity high, you can buy and sell at the price expected by only 1 click. you can conduct transactions at any somewhere, just have the internet. You can make the interest arbitrage operations to a profit for themselves even when the market is up or down. Forex market gives you many opportunities on the same day. With a giant amount of money circulating in the tens of trillions of dollars every day, Forex trading market is transparent, because there are not any companies or organization capable of manipulation. the rate of economic levers (2) high, can increase profits many times over compared with the initial capital of the transaction. (2) use economic leverage ie the fact that you can borrow money from the exchange to trade foreign currency amounts greater than the amount you actually have in your account. Leverage is the ratio between the amount of money you actually have in your account transactions and the amount you can trade. The common trading platform will have many different levels of leverage to give customers choice.
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