The Forex market is a portal for currency and foreign exchange.
Foreign exchange is the process of converting one currency into another for various reasons, usually for trade, trading or tourism.
According to a recent report every three years by the Bank for International Settlements (the World Bank to national central banks).
The average was more than $ 5.1 trillion in daily Forex trading volume.
The main ideas of the Forex market :
The foreign exchange market (also known as the foreign exchange market or Forex).
It is a global market for the exchange of national currencies against one another.
– Because of the global spread of trade, trading, and finance.
Where the Forex markets tend to be the largest and most liquid asset markets in the world.
Currencies are traded against each other as exchange pairs, for example, EUR / USD.
Forex markets exist as spot markets (cash) in addition to derivative markets that offer futures contracts.
Options and currency swaps.
Market participants use Forex to hedge against international currencies and interest rate risk.
Speculation on geopolitical events and portfolio diversification are among several other reasons.
What is the Forex market in general?
The Forex market is the foreign exchange market where currencies and currencies are traded are important to most people all over the world.
Whether they realize it or not, because currencies need exchange in order to conduct foreign trade and business.
If you live in the United States and want to buy cheese from France, you or the company you buy cheese from.
Pay an amount for cheese in euros, which means that the American importer will have to exchange the equivalent value of the dollar in euros.
The same applies to travel, as the French tourist in Egypt cannot pay in euros to see the pyramids.
Because it is not the locally accepted currency, the tourist must replace the euro with the local currency.
In this case, the Egyptian pound is at the current exchange rate.
One unique aspect of this international market is that there is no central market for foreign currencies.
Instead, currencies are traded electronically over the Internet (OTC).
This means that all transactions take place across computer networks between traders around the world and not on one central exchange.
The market is open 24 hours a day, five and a half days a week.
Currencies are traded all over the world in the major financial centers of London, New York, Tokyo, and Zurich.
And Frankfurt, Hong Kong, Singapore, Paris, and Sydney cross almost in every time zone.
This means that when the trading day ends in the United States, the Forex market will start again in Tokyo and Hong Kong.
As such, the Forex market can be very active at any time of the day as prices constantly change.
A brief history of the Forex market :
Unlike stock markets that can trace their roots for centuries, the Forex market as we understand it today is a truly new market.
And of course the basic meaning – that people who convert one currency to another to obtain a financial advantage – does.
Forex has been around since countries started minting currencies, but modern Forex markets are a modern invention.
After the agreement at Bretton Woods in 1971, more major currencies were allowed to float freely against each other.
The values of individual currencies vary, which has led to the need for foreign exchange and trading services.