HomeCurrecy Trading is done in Forex market (Foreign exchange abbreviation) means the market for the purchase of a currency linked to the simultaneous sale of another currency. Its main function is to allow the international monetary exchange and the exchange rate between the currencies. This is the largest financial market in the world with a volume of 1.5 trillion dollars a day. This is more than 3 times the amount traded on all U.S. markets.
Several factors influencing the market:
-The interest rates announced by central banks
-The government's debt
-Political events and economic
-Reports by Governments and indexes of purchasing power
-Industrial production, unemployment
-Market Assessment made by commentators and the media
In contrast to other markets so important, FOREX market has no physical location or central exchange. This is a market that is traded via electronic networks. The exchanges take place between banks, businesses or individuals. There are 5% of transactions which originates from governments and large companies and 95% that comes from speculation.
Two types of transactions are possible:
- Spot FOREX
- Currency Futures"
The spot FOREX is the exchange of currencies in real time, 24 hours a day. It allows more liquidity at a cost generally lower. The pairs traded are listed as the currency against the U.S. dollar or vice versa.
The currency futures are traded like currency against the U.S. dollar only. Trading is done on a limited time (closes at the end of the day) in non-US currencies, may be subject to certain liquidity shortages and delays in time, as well as higher costs (including those of the NFA or National Futures Association ").
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