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What is Forex?

Forex is becoming more and more popular since it can bring quite a lot of money. Forex is short for foreign exchange or currency exchange. It is the largest market (with over 2 trillion EUR daily) on the planet since it includes trading between speculators, multinational corporations, governments, and central banks.

What is great about exchanging foreign currencies is its trading volumes, the extreme liquidity (you always have buyers and sellers), available anywhere, long trading hours (almost 24/7) … Because of all these great facts forex is used among many people every day.

The biggest traders are of course banks Deutsche bank for example has volume of more than 19%, UBS AG more than 14%, Citi, Royal Bank of Scotland and Barclays Capital around 9% and so on. The 2 most traded currencies are of course European euro and American dollar with 37,2 and 88,7%, followed by Japanese yen, British pound, Swiss franc, Australian and Canadian dollar, Swedish krona, Hong Kong dollar … For example the 2 most traded products are euro / dollar (currently at 1.5653) with about 28% and dollar for yen (and reverse). The ratio between currencies is usually based on on the supply and demand factors. The more people that want to buy a certain currency the higher the price will be, and of course if more people want to sell it the price will probably drop.

Many people are already making a lot of money with forex and some of course are losing it. But usually people with good plan and those who invest in long terms usually get out with a good positive result.

Source by Luka Ce

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