What FOREX means

Foreign Currency Exchange (Forex ) Trading allows an investor to participate in profitable fluctuations of world currencies. Forex trading works by selecting pairs of currencies and then measuring profit or loss by the fluctuations of one currency prices in the market than others . For example , fluctuations in the price of the $ U.S. Dollar are measured against other currencies such as the British Pound , Eurodollar , Japanese Yen and others. Able to view the price trends in market activity is the essence of all profitable trading and this is what makes foreign currencies so exciting, currencies are market terbaik.Inilah world that provide investors with foreign currency exchange opportunities to make profits which are not available in other markets .
Forex trading has been dubbed as the current investment opportunity for the savvy investor . That is why the market foreign exchange trading only began in 1978 , when worldwide currencies were allowed to float based on supply and demand, 7 years after the Gold Standard was abandoned in 1995, the Forex Trading was only available to banks and large multinational corporations , but today, thanks to the proliferation of computers and a new era of internet-based communication technologies , this highly profitable market is open to everyone .
Unlike traditional trading which requires the buyer and seller are in the same location ( trading floors ) in Forex Trading but they do not need to be in the same location . Forexa dalah a market in which traders around the world doing business is connected with high -speed Internet network that connects with the Interbank Foreign Currency Exchange via Forex Clearinghouses ( also known as Forex Broker Firm ) . Forex has not only become the fastest growing market , but also the most profitable market in the world.
In other words , Forex is the most profitable because it is the world's largest market . The foreign exchange market is the entire account for 1.2 trillion dollars are traded every day (as indicated by the Central Bank Survey of Foreign Exchange and Derivatives Market fourth Activity , 1998 . Figure is said to have risen on this day . ) To put this into perspective , on any given day the foreign currency Exchange Market activity is vastly greater than the stock market . It is 75 times larger than the New York Stock Exchange where the total value of the overall average per day ( using 1998 figures ) of both foreign stock markets and the state is $ 16 billion , and much greater than the daily activity on the London Stock Exchange , with $ 11 billion .
Furthermore, in addition to being the largest and most profitable market , the Forex market is the most powerful and persistent trading market regardless of negative economic indicators . This is because currencies 'trend' better than other market based on macro -economic nature . Unlike other commodities whose supply and demand can change overnight (as we found in the sudden dot com market adjustment and even more surprising on September 11, 2001) , currency fundamentals are much less random , and far more predictable. This is well illustrated in the exchange rate in beansur gradually and only in small increments .
Another example that can be foreseen is illustrated by the following statistics . Of the $ 1.2 trillion day trading in foreign exchange , 83% of spot foreign exchange activity and 95 % of swap activity involves U.S. Dollars . The Euro is the second most active currency at 37 % . Japanese yen ( 24 % ) and British Pound Sterling ( 10 % ) are ranked third and fourth . The Swiss franc is 17 % and the Canadian and Australian Dollars 3 % .
Spot Forex is a forex trade in which self- traders concentrate their investment activity for reasons that are self-explanatory. Spot Forex transaction purposes is where the currency trade transactions carried out with a maximum of 2 working days is followed by a closing trade . However Spot Forex allows a trader who has high liquidity . Another popular feature is where a trader who has a high potential for profit when they buy a specific currency when it is weaker and selling it when it is strong and continual pairing of strong currencies weak . The potential for profit or loss depending on the effect of leverage. Leverage is where a small amount of money to control a large amount of money . For example , the leverage factor of 100 can allow a trader to hold 100,000 U.S. Dollar position with a capital of only 1,000 U.S. Dollar margin . This is because Forex Spot can control the risk of trading and the entry and production coupled with the potential to generate high profits .
"Few industries Financial Excitement and generate as much profit as currency exchange . Traders around the world enter trades for weeks , days or split seconds , generating Explosive moves or steady flows , and money changes hands QUICKLY at a staggering daily average of a trillion U.S. dollars . Forex profitability is Legendary . George Soros of Quantum Fund NGAWI a profit in excess of 1 billion dollars for a couple of days work in September 1992. Hans Hufschmid of Soloman Brothers , Inc. . netted $ 28 million for 1993. Even by Wall Street standards, These are heartstoppers Numbers " . *
Despite its high trading volume and its fundamental role in the world , the Forex Market is rarely in the media limelight because of the way trading transaction is less visible than the stock exchange , trading on the foreign exchange is increasing the public awareness , as it is lucrative market and risk . Add to this the no interference geographical boundaries and the Forex market is open to everyone .