In mind the constant need of currency exchange, due to the need to comply with the terms of international contracts, and many other factors, was formed a global system, enabling millions of sellers and buyers of currencies around the clock to exchange with no geographical reference to any particular place. Total of conversion operations on currency exchange in global scale became known as FOREX (Foreign Exchange Market - international monetary market). The ability to profit on the difference in exchange rates arising from permanent fluctuations have made FOREX a stable and reliable source of income for professional traders engaged in speculative currency trading on the international financial market.
Trades are conducted around the clock, 5 days a week. Opened trading Monday morning in the Eastern part of the world, and closes on Friday evening in the United States - the most Western part of the world. Key trades are binding, and are held for major currency such as: United States dollar (USD), Euro (EUR), Japanese yen (JPY), Swiss franc (CHF) and British pound (GPB). Worldwide trades on the Forex are one of the major sources of profit of international banks and other financial institutions.
- Central banks;
- Commercial banks;
- Investment banks;
- Brokers and dealers;
- Trust funds;
- Investment funds;
- Pension funds;
- Insurance company;
- National Corporation;
- International Corporation;
- Import-export company;
- Private investors.
Changes in the exchange rate can occur very quickly, dynamically changing over time. And in order to maximize the liquidity of the market, its participants need to have qualified at the highest level.
- The trade balance of the state;
- Macroeconomic indicators of the state;
- Policy of the Central Bank of the state;
- The presence of large investment projects;
- The presence of foreign trade contracts;
- The mood of market participants, their level of confidence;
- Political situation;
- Currency speculation;
- Force majeure circumstances.
The speed of generating income is many times greater than inflation. This means that Forex trades can not only preserve the purchasing power of existing capital, but also to increase it efficiently.
No matter how they behave currency rates. Regardless of whether they are rising or falling, there is always the possibility to trade with profit because of depreciation of one currency kompensiruet the growth rate of the other.
Forex trades always have alternative vectors of dealing. This protects investments and ensures continuous trading, even in case of economic crisis.
At that time, as other investment markets are subject to various factors, destabilizing their resistance, the Forex market is not so sensitive to such situations. Since the subject of the application investment efforts and makes the required stabilizing factors.
Because Forex trading platforms are located worldwide and are in different time zones, the process of concluding transactions is possible around the clock. Thus, there is a real possibility of carry trades around the clock, 5 days a week.
Forex is not depends on political attitudes and does not belong to any one country. The geopolitical lack of binding makes it affordable and democratic.