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Forex Trading
By Dave Markel, Thu Dec 8th
Copyright 2005 Dave Markel The Foreign Exchange market, also referred to as the "FOREX" or"FX" market is the largest financial market in the world, with adaily average turnover of US$1.9 trillion - thirty times largerthan the combined volume of all the United States equitymarkets. The FOREX website defines Foreign exchange as "thesimultaneous buying of one currency and selling of another.Currencies are traded in pairs, for example Euro/US Dollar(EUR/USD) or US Dollar/Japanese Yen (USD/JPY)". The FOREX market was launched in the 1970s, when free exchangerates were introduced. Only the participants of the marketdetermine the price currencies against one another. This dependson proceedings from supply and demand. Influence by a singleparticipant in the market is practically out of the question.This is because FOREX is more of an objective market. If some ofits participants would like to change prices for somemanipulative purpose, they would have to operate with tens ofbillions dollars. (Article continued below)
FOREX is part of the bank-to-bank currency market known as the24-hour Interbank market. The Interbank market literally followsthe sun around the world, moving from major banking centers ofthe United States to Australia, New Zealand to the Far East, toEurope then back to the United States. Speculations on the FOREX exchange market give the biggestprofit of all legal types of transactions. Everyday fluctuationsof currencies allow FOREX traders an opportunity to make moneyon these changes. It is the world's
biggest liquid financialmarket. Transactions are conducted all over the world viatelecommunications 24 hours a day from 00:00 GMT on Monday to10:00 pm GMT on Friday. In every time zone across the worldthere are dealers who will quote currencies. The majorcurrencies traded in FOREX, are Euro (EUR), Japanese Yen (JPY),British Pound (GBP), and Swiss Franc (CHF). All of them aretraded against the US dollar (USD). There are many advantages to trading in the FOREX market. Theseinclude: * The biggest number of participants and the largestvolumes of transactions * Superior liquidity and speed of themarket: transactions are conducted within a few secondsaccording to online quotes * The market works twenty four hoursa day, five working days a week * A trader can open or close anaccount for any amount of time he wants * No restrictions asaccounts with very low account balances. * There are no fees.The only payment is the difference between buying and sellingprices. * Opportunities exist to achieve a larger profit from aninvestment * It is possible to turn FOREX trading into aprofessional and qualified activity. * It is possible to makedeals any time at the convenience of ones home * It is notobligatory to buy some currency first in order to sell it later.* It is possible to open positions for buying and selling anycurrency without actually having it, usually involvingestablished Internet brokers. * The superior liquidity allowsthe traders to open and/or close positions within a few seconds.* The time of keeping a position is arbitrary and has no limits- from several seconds to many years * FOREX speculativeinterests can be satisfied without a real money supply, which inturn decreases overhead costs for money transfers. * It gives anopportunity to open positions with a small account in USdollars, buying and selling a lot of other currencies. * Mosttransactions must continue, since currency exchange is arequired mechanism needed to facilitate world commerce. About the author:For more great information on FOREX Trading visithttp://for-more-info.com/forex/forex-intro.html | 
