What is the Forex Currency Market?by Mary T Moreno I'm Entrepreneur and Writer
Foreign exchange name appeared from the Foreign Exchange Market. The forex interbank market was formed in 1971, when international trade shifted from fixed to the floating exchange rate. It is a collection of agents of forex transactions of the market for exchanging specified sums at an agreed rate on the currency of one country's currency for another on a certain date. The exchange rate of each other's relative currency is determined at very simple: supply and demand -- exchange to which both sides agree.
The volume of transactions in the global forex market is constantly increasing. It is associated with the development of international trade and the elimination of currency restrictions in many countries. Its transaction volume is not only impressive but also the rate, which marked market growth: daily turnover in 1977 rose to US$600 billion in ten years and reached a trillion dollars in 1992. The daily volume of forex accounted for about 32% of the daily turnover in the United States (the London Stock Exchange, amounting to $1 trillion 982 billion of operations in the world in mid-1998, 10%) - About 18% of New York, exchanged German markets. At this time, a turnover of more than $3 trillion daily. Difference in speculative transaction exchange rates with a view to profiting up about 80% of all transactions from the game on. The commission attracts many participants, both financial institutions and individual investors. Learn more about Forex broker comparison, Broker Check can be helpful for you.
The highest rate of information technology in the past two decades, the market itself changed beyond recognition. Once surrounded with a halo of race the mysterious profession of currency trader has almost become a massive one. Forex transactions that were recently a privilege of big-Izare banks, are now available, thanks to the system e-commerce. Most importantly, banks themselves also often prefer business-to-person electronic systems in bilateral transactions. Shares of electronic brokers now account for 11% of the total turnover of Forex. The daily transaction volume of the largest international banks (Deutsche Bank, Barclays Bank, Central Bank of Switzerland, Citibank, Chase Manhattan Bank, Standard Chartered Bank) reaches billions of dollars. In the forex market around the clock, it is not associated with specific hours of operation of stock markets, trading takes place between banks located in different parts of the world. The dynamics of the exchange rate that such significant changes often occur, allows to make many transactions every day. It is not surprising that major banks buy expensive electronic devices and hundreds of traders include states trading in different sectors of the forex market. To learn about CFD broker comparison or Comparación de Brókers de CFD, you can continue your research work by the help of Google.
The initial cost of entering the business today is very small. In fact, the initial training to pass, buy a computer, buy an information service and have thousands of dollars for that kind of money as a deposit of more value no real business can be organized. It also seems a very real thing to be a reliable broker. The rest depends on the trader. In any form today is the other area of activity, it all depends on you personally.
Created on Dec 24th 2020 00:17. Viewed 188 times.