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Foreign Exchnage Market Defifnition

Each country emits its own currency. There are plenty of internal and external factors on financial market (inflation, deflation, governmental debts, governmental actions, political situation, economic relationship between large players), influencing stability of the  Foreign exchange market and leading to its growth or decline in  every minute.

Forex definition

 

Forex ( Foreign exchange) is a conventional financial market formed in 1970-s of 20th century in the result of transferring to floating currency rate. Rapid evolution of communication means and computer equipment enabled  banks to exchange world currency without mediation of Foreign  exchange services.

Forex is an abbreviation of Foreign Exchange Operations. Current procedures on purchase and sale of currency constitute Forex market's main part.

As of today, Forex is the most liquid and fast growing financial market and besides it works 24 hours a day.

Perhaps, a main difference between Forex and other financial markets is absence of a specified location. What is Forex? It represents a global electronic network uniting Forex dealers located in all major financial global centers with all other participants of Foreign exchange market throughout the world.

Orders for purchase or sale of currency are simultaneously made with the help of computer terminals or over the phone, by hundreds of bank entities.

Bloomberg, Reuters, Dow Jons and other  information agencies help to monitor Forx market in a real-time mode and obtain all financial economic news.

Main volume of world currency exchange operations includes the most required currencies: Euro, US Dollar, British Pound, Japanese Yen, Swiss Frank. Exchange rates of these currencies are tracked by traders 24 hours a day. 

Dedicated software (like Metatrader), mass distribution of the Internet and development of affordable broker services enabled almost any interested person to earn on fluctuation of rates staking at growth or decline of one or another financial asset. All that led to enormous increase of amount of individual traders and investors all over the world.


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