The Forex (Foreign Exchange in English, or "foreign exchange market") is the market "OTC" (in other words between operators that are not susceptible to market "regulated") on which traded currencies throughout the globe between them, currencies quoted against one another in the form of parity .
At this time, the Forex is the largest monetary market across the world, the average daily number of transactions (about 4000 billion dollars in April 2010) which represents 3 times the equity markets and futures (futures markets) put together. Is being developed since the abandonment of fixed exchange rates of different currencies them (as well as the reference to the gold standard) in 1974, as Forex market determines the evolution of the parity of all pairs (or "cross") whose currency is the regime of floating exchange rates.
The most traded currencies across the country are Dollar (USD 43% of sales and purchases), the Euro (EUR: 19%), the Japanese Yen (JPY 8.5%), the British Pound (GBP 7.5%), the Swiss Franc (CHF: 3.5%), the Australian Dollar (AUD) Canadian Dollar (CAD). Currency called "secondary" and with exchange rate regimes "linked" or "fixed" (the currency of Argentina for example a fixed parity with the dollar, as the Franc CFA West Africa with the Euro and the Chinese Yuan to a basket of currencies dominated by "Dollar") are subject to little exchange on Forex.
Forex key stakeholders are:
Banks as well as financial companies that offer 50% of transactions through proposals for "market makers," giving a price anytime purchaser ("bid") and ask price ("ask"), the distinction (the "spread" ) is the financial gain;
Large companies who wish the entire hedge against currency risk in relation to their international activities (but multinationals also have created their very own trading floors directly involved in Forex speculative purposes);
The central banks involved sometimes the industry (selling or buying enormously currency) to be able to control and maintain a certain financial policy : the European Central Bank will certainly have the ability to trade Euros when it hopes to reduce this currency;
Institutional investors (protect funds, and so on.). Involved both cover portfolios stocks or even bonds in a keen speculative direct as much as 30% of Forex transactions;
People whose investments are highly developed thru trading "on line" and represent about 5% of forex transactions.
A position on the Forex includes selling one currency and buying another. Buy EUR / USD means for a trader to purchase Euro and then sell dollar .
If a trader anticipates an increase of value of EUR / USD (appreciation of the Euro against the dollar) and the euro / dollar truly goes to EUR / USD = 1.3000 to EUR / USD = 1.3050, 10,000 euros will be bought permitted the investor to get 50 Dollars.
At this time, the Forex is the largest monetary market across the world, the average daily number of transactions (about 4000 billion dollars in April 2010) which represents 3 times the equity markets and futures (futures markets) put together. Is being developed since the abandonment of fixed exchange rates of different currencies them (as well as the reference to the gold standard) in 1974, as Forex market determines the evolution of the parity of all pairs (or "cross") whose currency is the regime of floating exchange rates.
The most traded currencies across the country are Dollar (USD 43% of sales and purchases), the Euro (EUR: 19%), the Japanese Yen (JPY 8.5%), the British Pound (GBP 7.5%), the Swiss Franc (CHF: 3.5%), the Australian Dollar (AUD) Canadian Dollar (CAD). Currency called "secondary" and with exchange rate regimes "linked" or "fixed" (the currency of Argentina for example a fixed parity with the dollar, as the Franc CFA West Africa with the Euro and the Chinese Yuan to a basket of currencies dominated by "Dollar") are subject to little exchange on Forex.
Forex key stakeholders are:
Banks as well as financial companies that offer 50% of transactions through proposals for "market makers," giving a price anytime purchaser ("bid") and ask price ("ask"), the distinction (the "spread" ) is the financial gain;
Large companies who wish the entire hedge against currency risk in relation to their international activities (but multinationals also have created their very own trading floors directly involved in Forex speculative purposes);
The central banks involved sometimes the industry (selling or buying enormously currency) to be able to control and maintain a certain financial policy : the European Central Bank will certainly have the ability to trade Euros when it hopes to reduce this currency;
Institutional investors (protect funds, and so on.). Involved both cover portfolios stocks or even bonds in a keen speculative direct as much as 30% of Forex transactions;
People whose investments are highly developed thru trading "on line" and represent about 5% of forex transactions.
A position on the Forex includes selling one currency and buying another. Buy EUR / USD means for a trader to purchase Euro and then sell dollar .
If a trader anticipates an increase of value of EUR / USD (appreciation of the Euro against the dollar) and the euro / dollar truly goes to EUR / USD = 1.3000 to EUR / USD = 1.3050, 10,000 euros will be bought permitted the investor to get 50 Dollars.
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