The word Forex comes from the words ” FOReign Exchange ”, which means ” exchange of international currency “. FX or Financial Market Forex is the International market for foreign exchange is connected to the buying and selling of currencies or Exchange.
FX moves almost 4 trillion dollars a day, It is the largest financial market in the world in volume of money and liquidity. In Forex leverage is much more aggressive than that offered in other financial markets such as the stock market or commodity markets .
The Forex market is attractive because it offers the opportunity to make profits even with a small initial capital, and without leaving home , just be connected to internet.
The Forex is open 24 hours a day, five days a week (Useful days ) .
Forex key stakeholders are:
– The large banks and institutions
– Large businesses.
– The central banks.
– Institutional investors.
The most actively traded currencies in Forex are :
– The US dollar USD.
– The euro EUR.
– The yen JPY.
– The British pound GBP.
– The Swiss franc CHF.
– The Australian dollar AUD.
– The Canadian dollar CAD.
There are calls currencies of “secondary” regime and that have to exchange “connected” or “fixed” (the currency of Argentina has a fixed parity with the dollar, such as the CFA franc in West Africa with the euro and the Chinese Yuan) are subject to very little exchange of foreigners.
The position in Forex involves selling one currency and buying another. For example, buying the pair EUR / USD means for an investor buying the Euro and dollar selling.
Risks in the Forex market
The FX can certainly offers high profits, but also there is a real and frequent risk of performing high losses. FX is a speculative financial market and is not suitable for all types of investors, because there is a high risk in investment. Consider all possible risks before trading and, if necessary, seek professional advice.
In Forex to someone win, another, should miss! In other words, it is impossible to everyone win.