What is Forex anyway?

1. The FOREIGN CHANGE (FOREX or FX) Market is not a market in the traditional sense. It is, in fact, the crypto 888 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. In fact, it is the closest thing to "a perfect market" from a pure economics perspective. There is no centralized location for trading as there is in other forms of stocks and 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. Daily market turnover has skyrocketed from approximately 5 billion USD in 1977, to a staggering 2.5 trillion (and more) US dollars 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. That makes the FOREX market the most exciting market in the world. Central banks, commercial banks, international corporations, money managers, speculators, and even private individuals - are all involved in FOREX trading everyday. Foreign exchange (FOREX) is the trading of contracts of currency pair exchange rates. This is a "contract", or agreement (FOREX DEALS), that does not involve any physical exchange of currency. 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. After a few hours, the exchange rate went up to 1.3620. 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)!! This can happen within a few hours, or minutes. The same could happen in the opposite

2. 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...). So don't just stand on the side lines wishing you had taken this opportunity to make a fortune, invest now and make is happen for yourself today.