what is forex / forex?

Forex (FOReign EXchange market) - the interbank foreign exchange market, launched in 1971, when international trade shifted from a system of fixed exchange rates to floating system. The daily volume of transactions on the forex is estimated at 4-4,5 a trillion dollars a day, which varies from one to three annual budgets of the United States.

Example for comparison: the daily turnover of the American Stock Exchange at $ 300 billion, stock markets - 10 billion dollars. As a result we get, the New York Stock Exchange shareholder will be required six months to achieve a daily turnover of foreign exchange market Forex.

The operating principle of the forex - the exchange of convertible currency

foreign, where the rate of one currency relative to another is determined by supply and demand. Currency market consists of two main components: a stock market trade and off-exchange market - the interbank, in which the bulk of the operations carried out in the forex.

Features forex market:

liquidity: the market is dealing with the enormous money supply and provide full freedom of stock exchange trader at the opening or closing position of any volume of the existing at the moment the market quotation;
accessibility: to sell at the market can be almost anyone who has a free 100 rubles;
work: the opportunity to trade 24 hours a day. Currency Forex Market opens on Monday at 03:00 PM EDT and closes on Friday at 24:00 AM EDT;
flexible management of the organization of trade: the currency market position may be open to pre-defined period at the request of the trader that allows time to plan its future activities;
Cost: Forex market traditionally has no commission costs, except of course the difference of market bid / ask (between purchase price and sale price to the trader the bank);
unambiguity of quotations;
Market orientation: the movement, the movement of currencies has a well-defined focus, which can be tracked for a sufficiently long period of time. Each currency shows unique to it changes over time, which allows investment managers to the possibility of manipulation in the market of forex.

Trading in forex is carried out on the major currencies: Euro (EUR), Canadian Dollar (CAD), the U.S. dollar (USD), Swiss Franc (CHF), Pound (GBP), Japanese Yen (JPY), Australian dollar (AUD).

Trade can take place by telephone or through the trading terminal provided by the brokerage company, which is connected to the world trading system and forex exchanges. Every few seconds, sold and purchased hundreds of millions of dollars, that is the essence of the so-called Internet trading - currency trading.