International Monetary Market Forex

International Monetary Market Forex

Name of Forex (Forex) comes from the English word «foreign exchange» (foreign currency). Nowadays Forex market covers all the various operations with currency. These include: the extension of credit between users of the market, operations sales. For sufficiently small time Forex market has become to play an important role in the entire world economy. Daily cash flow, according to some estimates, is about 3 trillion. U.S., leaving far behind the stock market.

Forex - currency market worldwide, allowing its participants to make the exchange one currency for another. Currency exchange rates or exchange rates, determine the quantity of each currency in isolation in this exchange. The volume of transactions and the estimated days here may be completely arbitrary, because no limits on the size of contracts, and no settlement days.

Forex Market is used by various parties in different ways:

Providing investment and trade;
Company - importers need foreign currency to purchase goods abroad and sell in their country;
Companies - exporters receive money in foreign currency to be exchanged for its closure costs;
Hedging. The major foreign trade companies are often at risk due to changes in exchange rates. Adverse changes to the company could lead to significant losses. Forex offers such firms to insure their property against changes in currency exchange rates, which reduces the risk of large losses;
Speculation. The exchange rate depends on the balance of supply and demand for a specific currency. Participants can buy a currency at a low rate and sell at a higher, or vice versa. But the proportion of speculative transactions account for a significant portion of the foreign exchange market Forex.

International Forex market is essentially an OTC (Over-The-Counter). It works around the clock in the Forex various financial centers located throughout the world. However, a large number of trade

currency derivative instruments - derivatives - is carried out on the exchanges.

Early in the morning trade has its origins in Asia, then, as the opening of financial markets, moves from Russia to Europe, and finally to America. The Russian market Forex today is diverse in nature, there are dozens of companies providing market access on its own terms.

However, in Russia, as before, very difficult to find enough high-quality service. This trend is observed not only in small, but the major operators of the international currency market Forex. Required to find such a service and start work with a broker, which will combine all the necessary: the security of invested funds there are good conditions for trade and convenience.