The term foreign exchange

The term foreign exchange (or forex) to buy and sell currencies online in the foreign exchange market, any currency traded against each other in pairs, in order to make a profit.

Foreign exchange, or forex, is the world's largest market for international investment and trading in various currencies online. Without any actual physical location for buying and selling currencies, the forex market is characterized by a decentralized structure, investors can accessed through the Internet all over the world.

Forex market is that it has the highest liquidity in the world because of its ability to facilitate the purchase and sale of financial assets without causing drastic changes in asset prices. Today, the average daily turnover of more than $ 5 trillion, attributed more than 80% of this growth to the commercial activity of the financial institutions that the foreign exchange market works through it. This major markets include participation - as well as others and other institutions - major central banks, investment institutions (institutions that invest large sums of money in securities and other assets), speculators, governments, financial service providers (such as banks, credit companies, and companies insurance) and retail investors.

Unlike the stock market, the foreign exchange market integral to the different levels of entry, which includes interbank market at a higher level (which includes the largest commercial and central banks in the world such as Citi and Deutsche Bank and Barclays Investment Bank and UBS AG, HSBC, JP Morgan, and Goldman Sachs ). Just like the foreign exchange market, interbank market that is characterized by a decentralized and includes the largest commercial and investment banks, and nearly 40% of all transactions conducted by banks with a first class. This is followed by the next level, which includes medium-sized and small banks, hedge funds (open-private investment partnerships limited number of investors only), commercial companies, and electronic communications networks, retail (ECNs), and brokerage firms forex trading retail, and retail traders (traders and individual investors ).

With the advent of online trading platforms in 1996, the number of traders in foreign currencies increased retail individuals, who trade currencies and other financial instruments, have become even make up a large segment of the forex market in terms of importance and size
With broad geographic dispersion, the size of the huge trading and trading operations continued a 24-hour non-stop, with the exception of the weekend, the foreign exchange market is unique.

The forex trading currency pairs (ie pricing relative value of a currency relative to another currency), where the first currency is called the base currency, while second currency is called the quote currency. For example, if the pair EUR / USD rate is 1.2345, it means that the euro fixed price in US dollars, meaning that 1 euro equals US $ 1.2345. The most traded currency pairs include (also called major currencies) USD (US dollar), is EUR (Euro (, GBP (pound sterling (, is CHF (Swiss franc), JPY (Japanese Yen), CAD (Canadian dollar), and AUD (dollar Australian).

You can execute currency trading 24 hours a day, from 22.00 GMT GMT on Sunday until 22.00 GMT GMT on Friday, where currencies are traded among the major financial centers in London, New York, Tokyo, Zurich, Frankfurt, Paris, Sydney, Singapore and Hong Kong . Usually, there are three trading sessions is considered the main sessions characterized by a peak of activity, and also referred to as the strong positions of daily transactions: a European sessions, the Asian session, and the meeting of the North American
Promises of various factors and major events that have shaped the forex market and currency trading as we know it today to prehistoric times, when it was trading using swaps history (any exchange) of goods without the actual use of currencies.

He began to talk of foreign exchange by the year 1880, when the monetary system which uses the gold standard, which appeared a good alternative to compensate for the shortcomings of the old barter began. The most striking feature of this system is the stability of the exchange rate, where each state set the exchange rate of a currency other country, regardless of the means of exchange used (banknotes or coins). Not only will facilitate trading between two different currencies, but also helped to control the behavior of the currency and curb inflation.

20th century witnessed a rapid growth of foreign banks, especially in England, which included 40 brokerage firms for foreign exchange in London in 1922, and it was nearly half of the foreign exchange in the world in pounds sterling. At the time, New York, Paris and Berlin is known as the most active trading centers. After World War II, Bretton Woods Accord established the rules of financial relations, it restricted the currency fluctuation within the range of 1% of the nominal value of the currency. However, after the collapse of the Bretton Woods agreement fixed exchange-rate system gradually shift to a free-floating system. In the late seventies, it took the exchange of currencies dominated by the nation-state and is controlled by a major turning point, and gradually change to turn into a floating market
Today, currency trading seeks progressing rapidly towards the online trading by investors and traders from individuals and companies all over the world. It is the purchase and sale of various negotiable online financial assets such as securities city (banknotes or bonds), equities, or derivative securities (futures, options, swaps).

Since the end of currency trading in the nineties, who was traded to the currencies of the different countries against each other, trading has become a popular way of large-scale investment through an electronic network and usually with brokerage firms provide trading platforms via the Internet to allow investors to directly enter and intraday to global markets.

Before the advent of the Internet, the investment was possible only by placing orders via phone through brokers licensed to buy and sell stocks, bonds and other securities on behalf of individual and institutional clients. Included brokerage firms individuals professionals are employees legal where to put investors' orders in the stock market (such as London, Tokyo Stock Exchange Stock Exchange or the New York Stock Exchange), or outside the terms of trade (directly between two parties) for a commission or compensation for their services fees. We are dealing with all customer orders by intermediaries, who perform the role of mediator between investors and financial markets, where orders are placed in the brokerage firms, which are connected halls trading centers and the exchange systems.

1994 has seen significant growth in online trading. This year, the first brokerage firms began offering leading service changed the investment process over the Internet, is the possibility that investors put their orders directly online, and that the deliberate through electronic communication networks operated by computer.

Since that time, it has become the exchange of foreign currency, or currency trading, a common form all over the world to invest via the Internet, where it is practically anyone with internet access can. Usually this is done on the online trading platform provided by the intermediate company, where they are trading with just a few clicks by customers place orders, then the mediator These commands are passed to the interbank market, the highest level in the foreign exchange banks' market for the exchange of different currencies. Once the customer closes his deal, the mediator company shut down its centers in the interbank market in a matter of seconds and add balance to the client's trading account profit earned or loss realized deducted.

Today any investor can online direct access to global markets through the trading platforms online, and keep track of the time intraday price in the foreign exchange market (Forex continuous), 24-hour non-stop. Can be considered as trading platforms, the most famous MetaTrader 4, the essence of the trading process because it allows investors to buy and sell currencies, or any other securities, using for trading such as charts for technical analysis of integrated tools, flow rates in time intraday, newsletters, tests allocated to help trading to make sure profitable

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