The FOREX market (short for Foreign Exchange) market means buying a currency coupled simultaneously selling another currency. Its main function is to allow the international monetary exchange and determine the rate of exchange between currencies. It is the largest financial market in the world with a volume of $ 1.5 trillion per day. This is more than three times the amount traded on all U.S. markets.
Several factors influence the market price:
- The interest rates announced by central banks
- Government debt
- Political and Economic Events
- Reports of governments and index of purchasing capacity
- Industrial Production, unemployment
- Market Assessment made by commentators and the media
Unlike some other markets such importance, the FOREX market has no physical location or central exchange. It is a market that is traded by electronic networks. Exchanges take place between banks, companies or individuals. There are 5% of transactions origin of governments and large companies and 95% that comes from speculation.
The distribution of major currencies is as follows:
Two types of transactions are possible:
- "Spot" FOREX
- "Currency Futures"
The "spot" FOREX currency exchange in real time, 24 hours a day. It allows more liquidity at a generally lower cost. Pairs traded are listed as the currency versus the U.S. dollar, or vice versa.
"Future currency" are listed as the currency versus the U.S. dollar only. Trading is done on a time-limited (closes at the end of the day) market, non-US currencies are subject to certain liquidity shortages and time delays, as well as higher fees (including those of the NFA or "National Futures Association").
التسميات
forex