Forex Trading or Trading FX (short for Foreign Exchange or Foreign Currency exchange-FX) is the currency trading between the two countries which differ in value from time to time. Forex is an investment product and the liquid nature is international. Currency differences between the two countries has changed from waku to waktulah the basis of profits earned.
Actually the existence of forex trading has long been available since the discovery of a technique to convert a country's currency into another country's currency. However, the new institutionally there after the establishment of the arbitration agency contracts (futures). An example is the IMM (International Money Market, founded in 1972) which is a division of the CME (Chicago Mercantile Exchange-specific product handling perishable commodities). Other examples are LIFFE (London International Financial Futures Exchange), TIFFE (Tokyo International Financial Futures Exchange).
The velocity of money that occurs in the forex market reach U.S. $ 5 trillion per day (survey BIS-Bank for International Settlements, in Setember 2008). This amount is 40 x greater than the velocity of money if the other futures exchanges like any commodity or stock markets in every developed country stock exchanges anywhere! This means that the big trading volume, this market is very liquid (liquid), and control of trade can not be held by only a few parties who have a large capital. These currency movements completely dependent on the market. There are many big and small players in the forex trading, but none of them are able to control the movement of foreign exchange rates.
Currency is often traded currencies of developed countries like the U.S. dollar (USD), Japanese Yen (JPY), Swiss Franc (CHF), British Pound Sterling (GBP), Australian Dollar (AUD) and Euros (EUR). All of these currencies are traded in pairs (called a pair), for example EUR / GBP, CHF / JPY and so on.
Then from where I benefit from this investment? In simple, the benefits of this investment from the difference in value when we buy and sell the currency back to the country concerned. For example, in April Amir purchase Dollars USD exchange rate. 8500, - per dollar as much as U.S. $ 1000. So at the time of purchase this currency Amir spending of Rp. 8500, - x 1000 = Rp 8,500,000, - Then in May, the dollar exchange rate strengthened against the rupiah to Rp. 9500, - per dollar so that Amir net profit gain when he sold the dollar return is for: (9500-8500) x 1000 = Rp. 1.000.000, - Easy and simple is not it? And because the average time it takes to buy and sell back the currency in question is usually no more than one month, then the forex trading are classified as investments with short-term.
Sunday, January 10, 2010
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It is quite easy to get every details of the forex market. It is open for all and anyone can access it from anywhere in the world. Moreover, you don’t have to step out in order to get the required information. You can simply get all the details just by looking at your computer screen.
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