FOREX BLOG
Forex is short for Foreign Exchange or Forex . Forex is a global trading system , which includes banks, institutional investors, funds and speculators . The daily turnover of currency market exceeds the amount of 4 trillion U.S. dollars and continuously continues to increase.
Generally forex trading is the simultaneous buying of one currency and selling another . Transactions can be made electronically (via computer) or cash market - for example changing currency exchange desk . In both situations we have FX or Forex transaction.
The bulk of the transactions are carried out in one of the major currencies: U.S. Dollar , Euro , British pound , Japanese yen , Swiss franc , Canadian dollar and Australian dollar.
Unlike other financial markets (eg stock market ) , the currency is not positioned at a designated place . Forex market operates 24 hours a day through a network of computer terminals connecting banks , corporations, brokers and individual investors who deal with different sized amounts ranging from millions of dollars to deal a few tens or hundreds of dollars for regular investors. This ensures the formation of so-called " market liquidity " or the ability to buy or sell currencies indefinitely without any restrictions. Trading begins every day in New Zealand, followed by Sydney, in Tokyo, London and New York to the coast of California.
The development of computer and Internet technology has made the forex market accessible to small players can buy and sell currencies from his office or home.
In each currency transactions are always two prices: For example, take the price of EURUSD, which would look as follows: 1.6000 / 1.6002 . Probably soon will make you impression that prices are two. This is because forex quotes include "buy " and "sell" prices :
• Buy (Bid): The price at which the dealer to buy and sell the currency investors
• Sale (Ask): The price at which the dealer sells and investors Buy
The difference bid and offer rate is called the spread (Spread). The spread is the cost paid by the investor for the deal. All Forex brokers offersthe narrowest limits between courses "Buy " and " Sell" , thereby reducing the cost of each transaction you may want to have.
Generally forex trading is the simultaneous buying of one currency and selling another . Transactions can be made electronically (via computer) or cash market - for example changing currency exchange desk . In both situations we have FX or Forex transaction.
The bulk of the transactions are carried out in one of the major currencies: U.S. Dollar , Euro , British pound , Japanese yen , Swiss franc , Canadian dollar and Australian dollar.
Unlike other financial markets (eg stock market ) , the currency is not positioned at a designated place . Forex market operates 24 hours a day through a network of computer terminals connecting banks , corporations, brokers and individual investors who deal with different sized amounts ranging from millions of dollars to deal a few tens or hundreds of dollars for regular investors. This ensures the formation of so-called " market liquidity " or the ability to buy or sell currencies indefinitely without any restrictions. Trading begins every day in New Zealand, followed by Sydney, in Tokyo, London and New York to the coast of California.
The development of computer and Internet technology has made the forex market accessible to small players can buy and sell currencies from his office or home.
In each currency transactions are always two prices: For example, take the price of EURUSD, which would look as follows: 1.6000 / 1.6002 . Probably soon will make you impression that prices are two. This is because forex quotes include "buy " and "sell" prices :
• Buy (Bid): The price at which the dealer to buy and sell the currency investors
• Sale (Ask): The price at which the dealer sells and investors Buy
The difference bid and offer rate is called the spread (Spread). The spread is the cost paid by the investor for the deal. All Forex brokers offersthe narrowest limits between courses "Buy " and " Sell" , thereby reducing the cost of each transaction you may want to have.