Currency market Forex. Forex trading, trader.

Forex( FOReign EXchange) is the most progressive currency market in the world. Any exchange where tenders can and does happen appears in fantasy as a strange place where hundreds of traders are gathered, where trading is under way, everyone is shouting, comparing quotes, etc. Forex - this is not the stock exchange, which you can see in the cinema or imagine. The main feature of the international currency market Forex - trade through the Internet. Such trade is an exchange of freely convertible currencies. With the help of modern technologies, thousands of traders can sit at home in different parts of the world and freely contact on the means of implementing currency transactions.   

Trader ( Trader, English Trader) is a stock trader.

Both ordinary single traders and large financial institutions like banks and national banks can participate in trades. The daily turnover of Forex can be compared not one month of trading of the New York Stock Exchange. The daily trading volume on the Forex market is 1-3 trillion. To emphasize the importance of Forex I mention that the volume of the securities market is about 300 million dollars. Forex is clearly the most ambitious tool not only to exchange, but also to trade.

History of Forex

The beginning of the existence of Forex can be considered the time when one of the US presidents publicly announced the cancellation of the free convertibility of the dollar into gold. This is a historic event and laid the foundation for the existence of the international currency market Forex, where trades in currencies are held by common agreement.

The official opening of Forex took place on January 8, 1976 in the city of Kingston. On that day, IMF member countries finally abandoned the Golden Standard. From this moment the rapid development of new currency relations began.


Features of Forex:

• Trade does not stop 24 hours a day;
• Both large banks and single traders can participate in trades;
• No restriction on the number of transactions;
• You can trade the currency sitting at home.

These characteristics emphasize the main advantages. It is worth noting that you need to have a large fund to make a profit. If you buy a pound sterling at 11 UAH per unit of currency, then you can sell pound for 11.05 UAH.The profit on one pound will be only 0.05 UAH. But if you operated with the sum of 100 thousand pounds, then your profit will be 5,000 UAH, which is not bad.

In general, only a few basic types of trade are divided: speculative , hedging , regulating .If the first kind of trading operations is clear, then the second and third raise certain questions. Hedging operations serve for a variety of risks, while regulatory operations are performed primarily by banking structures. At the heart of such operations is a currency intervention - a set of measures to influence the currency market and the exchange rate.

As you can see, in modern times, trade and currency exchange is of great importance for maintaining the economies of entire states. Currency exchanges can serve as a springboard for "fusing" inflationary banknotes abroad. It's in theory. Although the US was able to get rid of inflationary banknotes. So, perhaps, Forex will prove effective in addressing inflation issues.