What is Forex anyway?

1. The FOREIGN EXCHANGE (FOREX, FX) market is not a "market" in the traditional sense. It is, in fact, the closest thing we have to a "perfect market" when viewed from an economics perspective. There is no centralized location for trading as there is in other forms of stocks and trading because all of the transactions are done online. Copyright (c) 2008 Orlando Thompson The FOREIGN EXCHANGE (FOREX,Guest Posting FX) market is not a "market" in the traditional sense. It is, in fact, the closest thing we have to a "perfect market" when viewed from an economics perspective. Trading is not centralized as it is with other types of stock trading. Trading takes place around the clock on computers and telephones in thousands of locations. Foreign Exchange (FOREX), is the largest market in the world. The daily market turnover has soared from 5 billion USD (and even more) in 1977 to staggering 2.5 trillion dollars (and even more) today. This is more than 100 times the daily turnover of the NASDAQ (what's that worth to you). The majority of foreign exchange transactions are spot deals between the US Dollar and six major currencies: the Japanese Yen (JPY), Euro, British Pound (GBP), Swiss Franc (CHF), Canadian Dollar, and Australian Dollar. However, the FOREX Market is so vast and has so many participants that no one player, including governments, can control the FOREX Market or have any influence on its direction. The FOREX market is the most dynamic market in the entire world. Central banks, commercial banks, international corporations, money managers, speculators, and even private individuals - are all involved in FOREX trading everyday. Trading contracts for currency pair exchange rates is Foreign Exchange (FOREX). It is a NON-DELIVERY trade, which means that there is no physical transaction of currencies, but it is rather an agreement, or "contract" (FOREX DEALS), to trade specific volumes of a pair of currencies at an agreed upon rate. The magnitude of such FOREX trades is that, in order to make the deal, only a proportional amount is needed (the COLLATERAL, or the MARGIN). If the exchange rate of a currency pair has changed by a certain percentage, then the value invested in the MARGIN will also change. However, it would be a higher proportion. The actual change to the Forex trader’s investment (the MARGIN deposited) will be the nominal exchange rate change multiplied by MARGIN ratio. This is an example of a FOREX Day-Trading deal made to buy EUR 100,000 against USD at 1.3500. This deal is MARGIN-required by the FOREX Trading Platform. The ratio required for this transaction is around 1:100. The trader only invests USD $100. The exchange rate rose to 1.3620 after a few short hours. This is an increase of 0.89%, which is quite normal for the global Forex market. However, thanks to the MARGIN ratio (= the LEVERAGE), the trader's investment went up by 89% (since a leverage of 1:100 has been used)!! Remember: that can happen in less than a day, sometimes in hours best forex broker

2. malaysia 2022 or even minutes! The same could happen in the opposite direction, however - the traders cannot lose more than their original MARGIN deposited (in other words we could say: you can profit unlimited amounts, but you can lose not more than 100% of your original investment, in this case $100). Forex traders can choose to buy or sell EUR in the deal. They may make money (if they were right ...)) when EUR falls. The Forex market offers today FOREX trading not only in MAJORS (the leading world curencies) but also in many other currency pairs (including exotic, gold and silver, etc...). Don't wait to see if you can make money, but invest today and start making it happen.