Currency exchange is pure speculation and high rates of return make it the preferred specialized investors.

The Forex market is the exchange of currencies worldwide including banks, corporations, governments and other financial institutions focused on the sale of a currency exchange according to their relationship.
Unlike the stock markets, The forex market operates between financial institutions and individual traders who buy and sell currencies according to how vary from another, are listed in pairs, Euro versus Dollar, Yen versus pound and so on.

forex_market

Details

Forex has not stopped growing since it opened in the Chicago Stock Exchange in 1970, the most liquid market around the world. In fact, the ten largest banks hold 70 percent of that market trading high numbers shortly.These ten banks provide foreign exchange market buying and selling prices. The difference between these prices (spread) is the gain on the sale the bank does. The purchase price is called “bid” and purchase “ask”.

The business

Forex is super volatile and its variations depend on what happens in the market. The exchange whatever with access 24 hours except weekends. The time at which to begin operations is key because you have to take into account the closure and opening of markets that carry more or less liquidity. Many economists and traders consider him the favorite of investors and warn of its volatility, which can generate losses snapshots.

Highlights

The main forex trading centers are London Stock Exchange (London Stock Exchange), The New York (New York Stock Exchange) And Tokyo (Tokyo Stock Exchange).Asian markets open first, then eventually the Europeans and Americans. Opens on Sunday evening and closes Friday at 16.00 EST.

And exchange variations

The actual currency flows are the cause of the variations between the values ​​of two currencies including the GDP impact of a country, inflation, interest rate, budget deficit and its status or trade surplus.
Other unpredictable factors that make currencies fluctuate deal with strikes, attacks, Revolutions, Advertising, tax adjustments and other events rooted in politics or economics. The variation of a currency means that at some point on the planet, someone wins and another loses, this variation is that increases or decreases the value of one currency against another.

The currencies are traded in pairs and each currency constitutes an individual product and is listed as xxx / yyy where yyy is the three-letter country code assigned to a coin. For the euro is EUR, for the dollar is USD. So far, the pair traded is the euro against the dollar, being European is the most appreciated against the other in this period of global crisis.