Nowadays almost everybody heard about Forex, and in fact it is the name of the international
interbank foreign exchange market. Its daily turnover is about 4 trillion dollars, which makes
Forex (one of the most popular segments of the global financial industry) and one of the most
profitable markets for private investors. Among private investors may be you.
Forex market chart looks quite simple and understandable. Forex is a global virtual space. In the
Forex market operate national and commercial banks, insurance companies, investment funds,
brokerage firms and private investors, which are both sellers and buyers of certain currencies.
Currency trading is almost every second. In the process of this trade, the levels of demand and
supply vary, accordingly, the value of a particular currency changes, measurable in the amount
of money offered to it by another currency. For example, there was a deal to sell 1 euro for
1.2319 dollars, in a second there is a deal to sell 1 euro for 1.2317 dollars, so, the euro exchange
rate has changed by 2 points or 2 pips.
This market is decentralized and self-regulated, it does not have a banking clearing house or a
central exchange, unlike the stock market. In this way, trading and clearing are provided without
any commission fee, so the transaction value is reduced several times. No big surprise, that it's
level of popularity is in permanent grow.
Forex transactions can be divided into three categories:
1) Transactions between central banks;
2) Transactions between commercial banks;
3) Transactions between financial institutions.
Central banks. These institutions play a crucial role in the forex market. Central banks are the
most important competent authority in the financial world. Their role is to achieve economic
growth and price stability. To do this, they regulate the money supply of the country: they set the
rate of interest rates, and also put forward reserve requirements. Also, the central bank controls
the country's currency.
Commercial banks. Such institutions provide for the liquidity of the forex market, which is
provided by everyday trading turnover. Trade of such banks is carried out with two purposes:
part of their trade - currency conversion for bank customers; The second part is carried out by the
department of own operations, with speculative goals being pursued.
Financial institutions. This category includes brokerage offices, pension and investment funds,
as well as fund managers. They are engaged in foreign currency trading and, therefore, fulfill
their obligations to clients - they find profitable investment opportunities.
How to start work on Forex?
In order to work in the Forex market, you do not need to open an office or become a professional
financier. Internet technologies have made the Forex market available to you almost anywhere.
With the help of Internet nowadays almost everybody can try own luck.
The role of your personal office in Forex is played by online trading platforms. Internet trading
platforms are the portals of companies that are professional brokers of the Forex market. These
companies accumulate the transactions of their clients-traders and represent their interests in the
interbank market. At the same time, broker companies themselves do not have any interest in the
profits and losses of their customers. The source of their earnings is the spreads with which deals