Why Forex market operates around the clock

Why Forex market operates around the clock

Market Forex (FX), - is the market rate. In the Forex rate of one currency relative to another, "Course Forex», is defined simply - exchange at the price on which both parties agree. Hence arose the name ForEx or Forex (Foreign Exchange - Currency Exchange).

Currency Forex market operates around the clock. Exchange during the week continues. Almost every time zone there are many market - makers of forex every second quote currency.

Of the three types of financial markets (commodity, stock and forex), Forex has the most potential for profit. Forex market in volume than the global stock market by 4-5 times. The turnover of trading on the Forex is estimated at 1.5-3 billion dollars every day.

The secret of successful trading in the Forex market is one simple rule: buy low, sell high. Each of us, sometimes without even knowing that, in practice, familiar with a return of the Forex.

Example:

Someone N. December 1, 2009, with savings to 1,500,000 rubles, this amount has diversified into three parts: 500 thousand rubles in the form of bank ruble deposits at 10% per annum and 1 million rubles. distributed in two foreign currency deposits by 5% per annum 500 thousand rubles. equivalent of $ 17.200 (equivalent to 29.06 rubles per dollar), and 500 thousand rubles. equivalents 11.426 euros (equivalent to 43.76 rubles per euro).

After six months, the amount of ruble deposits amounted to 525,000 rubles, the dollar contribution increased to 17.630 a dollar, that is up to 541.946 rubles (if you convert dollars back to rubles at the exchange rate on June 1, 2010 30.74 rubles per dollar), and contribution to the euro rose to 11.711 euros during the conversion obtained 442.793 rubles (rate 37.81 rubles per euro).

What happens? In the second version of the N was able to earn additional income for their savings, compared with the first option in the amount of 41.946 rubles. And the third has lost 57,207 rubles, even compared with the initial amount of 500,000?

The example in practice, illustrates how changes in exchange rates may affect the thickness of our wallet. But the opportunities offered to us today, the currency market Forex, to actively participate in the process of speculative trade to a regular profit! Everything you need to do - a broker that gives the opportunity to make speculative transactions, computer with internet access, a certain amount of free money and, most importantly, a desire to improve in this (not the easiest) of activity.