The Forex (Foreign Exchange in English, or "foreign exchange market") is the market "OTC" (that is to say between operators that are not subject to market "regulated") on which traded currencies throughout the world between them, currencies quoted against each other by means of parity .
Today, the Forex is the largest monetary market across the country, the average daily volume of transactions (about 4000 billion dollars in April 2010) which represents three times the equity markets and futures (futures markets) joined together. Is being developed since the abandonment of fixed exchange rates of various currencies them (and also the reference to the gold standard) in 1974, as Forex market determines the evolution of the parity of all pairs (or "cross") whose currency is the regime of floating exchange rates.
The most traded currencies across the world are Dollar (USD 43% of sales and purchases), the Euro (EUR: 19%), the Japanese Yen (JPY 8.5%), the British Pound (GBP 7.5%), the Swiss Franc (CHF: 3.5%), the Australian Dollar (AUD) Canadian Dollar (CAD). Currency known as "secondary" and with exchange rate regimes "linked" or "fixed" (the currency of Argentina for example a fixed parity with the dollar, as the Franc CFA West Africa with the Euro and the Chinese Yuan to a basket of currencies dominated by "Dollar") are susceptible to small exchange on Forex.
Forex key stakeholders are:
Banks as well as financial institutions that provide 50% of transactions through proposals for "market makers," offering a price at any time purchaser ("bid") and ask price ("ask"), the distinction (the "spread" ) is the profit;
Big corporations who wish the whole hedge towards currency risk in relation to their global activities (yet multinationals also have developed their own trading floors directly included in Forex speculative purposes);
The central banks involved sometimes the market (buying or selling massively currency) in order to regulate and maintain a specific financial policy : the European Central Bank will have the ability to trade Euros when it hopes to decrease this currency;
Institutional investors (protect money, and so on.). Included both cover portfolios stocks or perhaps bonds in an optical speculative direct as much as 30% of Forex transactions;
People whose investments are extremely developed through selling "on line" and represent approximately 5% of forex transactions.
A position on the Forex includes selling one currency and buying one other. Purchase EUR / USD means for a trader to buy Euro and sell dollar .
If a trader expects an increase of value of EUR / USD (appreciation of the Euro towards the dollar) and the euro / dollar truly goes to EUR / USD = 1.3000 to EUR / USD = 1.3050, 10,000 euros will be bought permitted the trader to get 50 Dollars.
Today, the Forex is the largest monetary market across the country, the average daily volume of transactions (about 4000 billion dollars in April 2010) which represents three times the equity markets and futures (futures markets) joined together. Is being developed since the abandonment of fixed exchange rates of various currencies them (and also the reference to the gold standard) in 1974, as Forex market determines the evolution of the parity of all pairs (or "cross") whose currency is the regime of floating exchange rates.
The most traded currencies across the world are Dollar (USD 43% of sales and purchases), the Euro (EUR: 19%), the Japanese Yen (JPY 8.5%), the British Pound (GBP 7.5%), the Swiss Franc (CHF: 3.5%), the Australian Dollar (AUD) Canadian Dollar (CAD). Currency known as "secondary" and with exchange rate regimes "linked" or "fixed" (the currency of Argentina for example a fixed parity with the dollar, as the Franc CFA West Africa with the Euro and the Chinese Yuan to a basket of currencies dominated by "Dollar") are susceptible to small exchange on Forex.
Forex key stakeholders are:
Banks as well as financial institutions that provide 50% of transactions through proposals for "market makers," offering a price at any time purchaser ("bid") and ask price ("ask"), the distinction (the "spread" ) is the profit;
Big corporations who wish the whole hedge towards currency risk in relation to their global activities (yet multinationals also have developed their own trading floors directly included in Forex speculative purposes);
The central banks involved sometimes the market (buying or selling massively currency) in order to regulate and maintain a specific financial policy : the European Central Bank will have the ability to trade Euros when it hopes to decrease this currency;
Institutional investors (protect money, and so on.). Included both cover portfolios stocks or perhaps bonds in an optical speculative direct as much as 30% of Forex transactions;
People whose investments are extremely developed through selling "on line" and represent approximately 5% of forex transactions.
A position on the Forex includes selling one currency and buying one other. Purchase EUR / USD means for a trader to buy Euro and sell dollar .
If a trader expects an increase of value of EUR / USD (appreciation of the Euro towards the dollar) and the euro / dollar truly goes to EUR / USD = 1.3000 to EUR / USD = 1.3050, 10,000 euros will be bought permitted the trader to get 50 Dollars.
About the Author:
To find out more concerning trading currency, look at this great website: forex trading.
