Forex (FX) - the international currency market - a market where one currency bought and sold in others. This is - one of the biggest markets in the world.
Some of the participants in this market are simply seeking to exchange foreign currency for their own or, conversely, to such parties include, for example, transnational corporations, which must pay salaries and other expenses in some countries, selling products in another. However, most of the market consists of currency speculators who profit from movements in exchange rates, as well as speculators profit by movements in stock prices. Currency traders can take advantage of even small fluctuations in exchange rates.
In the currency market quite a bit of insider information. Exchange rate fluctuations are usually caused by actual monetary flows as well as expectations of global macroeconomic conditions. Significant news in this area are covered in public, at least in theory, all people in the world receive the same news at the same time.
Currencies are traded against one another. Each pair of currencies thus constitutes a separate instrument and is usually denoted by XXX / YYY, where YYY - international (ISO 4217) three-letter currency code, which expresses the price of one currency unit XXX. For example, "EUR / USD 1,2045" - price of the euro expressed in U.S. dollars in 1 euro = 1.2045 dollar.
In contrast to the promotional and futures exchanges, the foreign exchange market - indeed an interbank, over the counter market (OTC), which means there is no single universal exchange for specific currency pair. Foreign exchange market operates 24 hours a day during the week between people and Forex-brokers, brokers and banks and banks with each other. If the Asian session is completed, the European session begins, and then the U.S. session, so all world currencies can be continually in trade. Traders can react to news when it breaks, rather than waiting for the market opening, as is the case with most other markets.
Average trading volume was 4.0 trillion dollars a day in April 2010, according to a study of the Bank for International Settlements.
As in any market in the Forex is spread (spread) between the price of supply and demand (the difference between the purchase price and selling price). For the major currency pairs, the difference between the price at which a market participant sells a client (ask or offer) and the price at which the same market participant buys a customer (bid), is minimal, usually only 1 or 2 pips (points, pips) . The price EUR / USD 1,2045, 1 tick - is 0.0001. Thus, when a spread is 3 pips, the quotation EUR / USD might look like 1.2042 / 1.2045.
Individual currency speculators can work during the day, taking advantage of the entire 24-hour trading day of the market.
Some of the participants in this market are simply seeking to exchange foreign currency for their own or, conversely, to such parties include, for example, transnational corporations, which must pay salaries and other expenses in some countries, selling products in another. However, most of the market consists of currency speculators who profit from movements in exchange rates, as well as speculators profit by movements in stock prices. Currency traders can take advantage of even small fluctuations in exchange rates.
In the currency market quite a bit of insider information. Exchange rate fluctuations are usually caused by actual monetary flows as well as expectations of global macroeconomic conditions. Significant news in this area are covered in public, at least in theory, all people in the world receive the same news at the same time.
Currencies are traded against one another. Each pair of currencies thus constitutes a separate instrument and is usually denoted by XXX / YYY, where YYY - international (ISO 4217) three-letter currency code, which expresses the price of one currency unit XXX. For example, "EUR / USD 1,2045" - price of the euro expressed in U.S. dollars in 1 euro = 1.2045 dollar.
In contrast to the promotional and futures exchanges, the foreign exchange market - indeed an interbank, over the counter market (OTC), which means there is no single universal exchange for specific currency pair. Foreign exchange market operates 24 hours a day during the week between people and Forex-brokers, brokers and banks and banks with each other. If the Asian session is completed, the European session begins, and then the U.S. session, so all world currencies can be continually in trade. Traders can react to news when it breaks, rather than waiting for the market opening, as is the case with most other markets.
Average trading volume was 4.0 trillion dollars a day in April 2010, according to a study of the Bank for International Settlements.
As in any market in the Forex is spread (spread) between the price of supply and demand (the difference between the purchase price and selling price). For the major currency pairs, the difference between the price at which a market participant sells a client (ask or offer) and the price at which the same market participant buys a customer (bid), is minimal, usually only 1 or 2 pips (points, pips) . The price EUR / USD 1,2045, 1 tick - is 0.0001. Thus, when a spread is 3 pips, the quotation EUR / USD might look like 1.2042 / 1.2045.
Individual currency speculators can work during the day, taking advantage of the entire 24-hour trading day of the market.
Thanks for the info! Now I realize that here on the Forex is no big deal
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