Foreign exchange Market
Foreign Exchange market also called Forex market is the oldest market in the work. It is also seen to be the larges in the world. Being currencies primary market working 24 hours a day, forex is ajso the largest market with highest liquidity. This is an interbank market carrying out spot (or cash) transactions. The currency futures market, to be compared with Forex is trades only 1% as much. Forex market does not have any exchanged center unlike the stock market. Forex trading seem to go after the sun around the world. from banks of the United States to other parts of the world like Australia, New Zealand, the Far East or Europe and back to the US some time later.
High minimum amount of transaction and strict financial requirements used to make this interbank market unavailable for small speculations. The only dealers of currency market were banks, huge-amount speculators and largest currency dealers. They had an ultimate access to this market dealing with lots of primary exchange rates of the world currencies, the market with an extremely high liquidity along with an unusually strong nature of trends. Nowadays small traders have an opportunity to purchase the small lots (units), as a result of the large inter-bank units being split by market maker brokers like eToro, at the amount they like.
The traders of any size like small companies and individual speculators have an access to the market at he same price fluctuations and exchange rates which only large players used to enjoy recently. Market markers monitor the rates so that produce their profit on the difference of rates at which the currency was brought and sold. Foreign Exchange Market has an acronymic name Forex. It has the largest size and the liquidity throughtout world nowadays. Forex daily transactions are carried out at the common amount from 1 to 3 trillion dollars. There is no stock market that is able to deal with a comparable amount of money.
This enormous market is like the dangerous sea where you can meet lots of sharks and dangerous water but at the same time it is the only one where two weeks of trading can hypothetically bring you 1,000,000 dollars out of 1,000 dollars of initial investment.
High minimum amount of transaction and strict financial requirements used to make this interbank market unavailable for small speculations. The only dealers of currency market were banks, huge-amount speculators and largest currency dealers. They had an ultimate access to this market dealing with lots of primary exchange rates of the world currencies, the market with an extremely high liquidity along with an unusually strong nature of trends. Nowadays small traders have an opportunity to purchase the small lots (units), as a result of the large inter-bank units being split by market maker brokers like eToro, at the amount they like.
The traders of any size like small companies and individual speculators have an access to the market at he same price fluctuations and exchange rates which only large players used to enjoy recently. Market markers monitor the rates so that produce their profit on the difference of rates at which the currency was brought and sold. Foreign Exchange Market has an acronymic name Forex. It has the largest size and the liquidity throughtout world nowadays. Forex daily transactions are carried out at the common amount from 1 to 3 trillion dollars. There is no stock market that is able to deal with a comparable amount of money.
This enormous market is like the dangerous sea where you can meet lots of sharks and dangerous water but at the same time it is the only one where two weeks of trading can hypothetically bring you 1,000,000 dollars out of 1,000 dollars of initial investment.
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