foreign exchange or exchange rates, including speculation about the movements of one currency relative to another, and profit if the direction of change conforms to your forecast. All currencies are traded in pairs, such as sterling versus the dollar. A pair of pairs is a currency that indicates how much the first currency can be exchanged for a second. So if the pound is 1.550 against the dollar, it means 1 pounds can be exchanged for 1.550 dollars. Other products are the same, when you trade a pair of currency pairs, you can choose to buy or sell. If you expect the first currency to strengthen against the second currency, buy the currency pair and sell if you think you will weaken.
Forex is the most widely traded product in the world. From the chart below you can see that the main daily foreign exchange volume, from 1988 to 500 billion U.S. dollars to 2007 of 3 trillion U.S. dollars, it is estimated that now nearly 4 trillion dollars. It is also a fast-growing market for individual investors worldwide, which is profitable, regardless of price fluctuations, as it opens 24 hours a day.
trading in major foreign exchange markets from 1998 to 2010 were in billion dollars.
After theWorld War II, a lot of reconstruction work was required, and huge foreign exchange transactions were needed to raise the required funds. Now that foreign exchange is free to trade, the supply and demand of money in the market regulates the price of money in the major industrial countries. This has also encouraged a full increase in trading volumes, with more frequent fluctuations in the price of national currencies. With the advent of globalisation and the development of computer and Internet technology, forex trading has become increasingly easy and accessible to individuals and institutions, and thus, as we have seen, trading in the forex market has grown to $4 trillion a day.
Forex is a very unique and interesting market, which differs greatly from the traditional securities market or commodity market. Has the following distinct characteristics:
Other markets are dwarfed by the 4 trillion daily trading volume.
can be easily traded in the forex market, low custodial fees, fast execution and transparent quotes, and so on.
can trade forex in any corner of the world, just connect the Internet.
Forex is traded 24 hours a day, Five days a week. will not be subject to factors such as season or contract expiration.
Usually, a country's interest rate increases, the demand for the currency rises, and its currency appreciates, because owning the currency can yield greater returns.
if the government's budget deficit increases, the country's currency will fall, and vice versa.
The trade between the countries illustrates the demand for goods and services, as well as the demand for trade in the country's currency. The widening of the trade deficit would therefore devalue the country's currency.
usually has a high inflation level or a market forecast will rise and exchange rate depreciation. This is because of high inflation and high prices, indicating a decrease in demand for the country's currency. However, sometimes the high rate of inflation has risen, because the market speculated that the central bank would raise interest rates to counter rising inflation.
reports such as gross domestic product, employment and retail sales determine the level of economic growth and health in a country. In general, the more robust a country's economy is, the better its currency is, and the greater its demand.
The change of domestic and international political situation has far-reaching influence on exchange rate. Volatility, such as changes in domestic and foreign governments, economic behavior of the next or ruling parties, confrontation between the Government or the parties, and tensions will have a significant impact on the exchange rate.
Forex is the world's most traded products, regardless of fluctuations can profit. This is also the most significant advantage of trading forex, and you can enjoy this advantage in the EMR transaction-please read the risk alert
the high circulation of foreign exchange transactions makes the price quite transparent. Because of its fluidity, you will not be because of the sudden huge price fluctuations and no return, there will be no position can not be closed.
you can trade forex anytime, day or night. In addition, the foreign exchange also has no days to rest, there is no product resumption of trade after the huge fluctuations caused your big losses.
because there are so many participants in forex trading, there are countless information on forex trading.
the high turnover of foreign exchange makes it widely traded, and you can see that the daily trading range is huge and gives you a quick profit.
the number and nature of foreign exchange transactions eliminates market manipulation and insider trading.