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The internet is Ground Zero for binary options fraud Forex “foreign abbreviated as FX) is the market in which currencies are traded. The forex market is the largest, market in the world in terms of the total amount of cash traded, with average daily sums measured in the trillions of dollars. It includes all of the currencies in the world. (a contraction exchange,” of often most liquid Forex is an example of a contract for difference (CFD). In any CFD, a seller agrees to pay to a buyer the difference between the current value of an asset and its value at a specified contract time. In the event the difference will turn out to be negative, the buyer pays the seller. People, businesses and governments can all be sellers or buyers.
Conducted over the counter in all major financial centers There is no single central forex market. Trade is conducted over the counter in all major financial centers, including Frankfurt, Hong Kong, London, New York, Paris, Singapore, Sydney, Tel Aviv, Tokyo, and Zurich. Not surprisingly, the U.S. dollar is the most actively traded currency, and it is most frequently traded for euros, followed by the yen, the pound sterling, and the Swiss franc. The profit or loss in forex is due to market fluctuations that typically result from a combination of short-term economic indicators and interest rate differentials. speculation, major
Spot vs. Forward Trading Forex transactions take place on either a “spot” (immediate) or a “forward” (later) basis. Spot is defined as two business days for most currency pairs, not counting weekends or legal holidays in the countries whose currencies are being traded. A forward trade can be scheduled by agreement at any time in the future other than a weekend or holiday, and takes into consideration the interest rate differential between the two traded currencies. Transactions that will mature more than a year later are relatively unusual, but possible. In both cases, funds are exchanged not on the day of the transaction but rather on the settlement date.
Futures A "future" is similar to a forward, but is only traded on an exchange and can only be executed for specific amounts and on specific dates. The buyer pays a portion of the value of the contract up front and either pays or receives money based on the change in value. Futures are most commonly used by speculators, and the contracts are usually closed out before maturity.
The Advantages Forex provides an option for every budget and every investor with a different appetite for risk taking, and transaction costs are extremely low compared to other types of trading The forex market operates 24 hours a day, seven days a week, closing only for major national holidays Information regarding forex markets is easily available and simple to understand The global forex market is huge, so no country, central bank or single investor can corner the market or rig prices for an extended period of time
The Risks The other party to the transaction may not have the intention or the ability to honor a contract Sudden unexpected news (catastrophic weather or earthquakes, for example) can significantly affect the market There is almost no government regulation, so investors have few, if any, protections Traders may lose all of their investment in a matter of minutes, even before deducting brokerage commissions, if they place highly leveraged bets
Caveat Emptor: Buyer Beware In the United States, there are no registered exchanges that offer CFDs to retail investors. If your retail brokerage claims to be registered in the U.S., it’s a scam. Other countries and jurisdictions that have banned or severely restricted retail forex trading are: Belarus Bosnia & Herzegovina Bulgaria Canada China Cuba India Indonesia Ivory Coast Iran Liberia Lithuania Macedonia Malaysia Montenegro Myanmar Nigeria North Korea Pakistan Romania South Korea Sri Lanka St. Helena Sudan Syria Ukraine Zimbabwe o o o o o o o o o o o o o o o o o o o o o o o o o o o
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