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What is Forex

What is Forex

 

The British and Americans use the word Forex as a sign of mutual currency exchange between countries. In the former Soviet Union, Forex refers to speculation using leverage.

 

The name of the largest financial market is translated from English and means "international currency exchange".

 

The daily turnover of money on a giant space platform exceeds seven trillion dollars. The main players are large transnational banks, corporations, various investment funds.

 

Only five percent of the funds in Forex are retail traders' money. They bravely conduct their speculative activities, maneuvering between market giant sharks, losing their capital and making new profits.

 

Five percent of small investors' circulating forex funds are over $250 billion.

 

What is Forex and how it works

Beginner traders do not know what the Forex currency market is or why it appeared.

 

The international currency exchange market emerged in 1976 after the abolition of the "Gold Standard". Thanks to the willful decision of the United States President Richard Nixon, the American financial system has changed.

 

The national currency of the United States ceased to be supplied with precious metal. Paper began to be valued at the weight of gold. Fiat US money was pegged to the value of black gold, oil. The American currency is now called oil dollars.

 

After the abolition of the "Gold Standard" there was a need to conduct trade operations between countries, to buy and sell and exchange national currencies.

 

The place for interstate monetary exchange was the Forex market. The exchange rate of national currencies was linked to the value of U.S. oil dollars and depended on the market supply and demand.

 

It is possible to trade on Forex from Monday to Friday inclusive. Saturday and Sunday are the weekends on the trading floor. Forex Start is early Monday morning when the Asian Exchange opens. Gradually the Asian market is joined by Europe, then the American and Pacific markets.

 

Reasons for Forex popularity

Historians can't tell us the exact time when the financiers appeared. Banking as well as speculators' activities flourished in Ancient Babylon.

 

In the former Soviet Union, all private commercial activity was strictly forbidden. After the change of the financial system, residents of the former Soviet Union were actively engaged in business, interested in Forex.

 

Availability is one of the main reasons for the popularity of the international currency exchange market.

 

Having a small capital, perhaps with the help of leverage to make trading operations and make a profit. Technological progress now allows you to speculate from anywhere in the world.

 

In Forex you do not need to look for suppliers of goods or expect buyers. The market is so liquid that it allows trading in a split second.

 

There is no language barrier in the market. Brokerage platforms can be called polyglots. There are numerous translations of sites into different languages.

 

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