The Forex (Foreign Exchange in English, or "foreign exchange market") is the market "OTC" (in other words between operators that are not subject to market "regulated") on which traded currencies all over the world between them, currencies quoted against each other in the form of parity .
At this time, the Forex is the biggest monetary market around the world, the average daily number of transactions (about 4000 billion dollars in April 2010) representing 3 times the equity markets and futures (futures markets) joined together. Has been developed since the desertion of fixed exchange rates of various currencies them (and also the reference to the gold standard) in 1974, as Forex market determines the evolution of the parity of all pairs (or "cross") whose currency is the regime of floating exchange rates.
The most traded currencies around the globe are Dollar (USD 43% of sales and purchases), the Euro (EUR: 19%), the Japanese Yen (JPY 8.5%), the British Pound (GBP 7.5%), the Swiss Franc (CHF: 3.5%), the Australian Dollar (AUD) Canadian Dollar (CAD). Currency known as "secondary" and with exchange rate regimes "linked" or "fixed" (the currency of Argentina for example a fixed parity with the dollar, as the Franc CFA West Africa with the Euro and the Chinese Yuan to a basket of currencies dominated by "Dollar") are subject to small exchange on Forex.
Forex key stakeholders are:
Banks and financial companies that provide 50% of transactions through proposals for "market makers," giving a price at any time buyer ("bid") and ask price ("ask"), the distinction (the "spread" ) is the financial gain;
Big companies who want the whole hedge towards currency risk with regards to their global activities (but multinationals have also created their own trading floors directly included in Forex risky purposes);
The central banks included sometimes the market (buying or selling massively currency) to be able to regulate and keep a specific financial policy : the European Central Bank will certainly be able to trade Euros when it hopes to reduce this currency;
Institutional investors (protect money, and so on.). Involved both cover portfolios stocks or bonds in an optical speculative direct as much as 30% of Forex transactions;
Individuals whose investments are highly developed through trading "on line" and represent approximately 5% of forex transactions.
A position on the Forex involves selling one currency and buying one other. Buy EUR / USD means for an investor to buy Euro and then sell dollar .
If an investor expects an increase of EUR / USD (appreciation of the Euro against the dollar) and the euro / dollar truly goes to EUR / USD = 1.3000 to EUR / USD = 1.3050, 10,000 euros will likely be bought permitted the trader to get 50 Dollars.
At this time, the Forex is the biggest monetary market around the world, the average daily number of transactions (about 4000 billion dollars in April 2010) representing 3 times the equity markets and futures (futures markets) joined together. Has been developed since the desertion of fixed exchange rates of various currencies them (and also the reference to the gold standard) in 1974, as Forex market determines the evolution of the parity of all pairs (or "cross") whose currency is the regime of floating exchange rates.
The most traded currencies around the globe are Dollar (USD 43% of sales and purchases), the Euro (EUR: 19%), the Japanese Yen (JPY 8.5%), the British Pound (GBP 7.5%), the Swiss Franc (CHF: 3.5%), the Australian Dollar (AUD) Canadian Dollar (CAD). Currency known as "secondary" and with exchange rate regimes "linked" or "fixed" (the currency of Argentina for example a fixed parity with the dollar, as the Franc CFA West Africa with the Euro and the Chinese Yuan to a basket of currencies dominated by "Dollar") are subject to small exchange on Forex.
Forex key stakeholders are:
Banks and financial companies that provide 50% of transactions through proposals for "market makers," giving a price at any time buyer ("bid") and ask price ("ask"), the distinction (the "spread" ) is the financial gain;
Big companies who want the whole hedge towards currency risk with regards to their global activities (but multinationals have also created their own trading floors directly included in Forex risky purposes);
The central banks included sometimes the market (buying or selling massively currency) to be able to regulate and keep a specific financial policy : the European Central Bank will certainly be able to trade Euros when it hopes to reduce this currency;
Institutional investors (protect money, and so on.). Involved both cover portfolios stocks or bonds in an optical speculative direct as much as 30% of Forex transactions;
Individuals whose investments are highly developed through trading "on line" and represent approximately 5% of forex transactions.
A position on the Forex involves selling one currency and buying one other. Buy EUR / USD means for an investor to buy Euro and then sell dollar .
If an investor expects an increase of EUR / USD (appreciation of the Euro against the dollar) and the euro / dollar truly goes to EUR / USD = 1.3000 to EUR / USD = 1.3050, 10,000 euros will likely be bought permitted the trader to get 50 Dollars.
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