What is FOREX?ore
If all countries in the world use a common currency, they will be no need to understand foreign exchange! In reality, however, every country has its own currency. The foreign exchange market has emerged because of existence of different national currencies national currencies and of the need for the international transaction such as trade, investment etc. Given the large volume of international transaction, banks and trading companies need mechanism to facilitate the exchange of currencies.
There are 2 type of Forex Market
* SPOT FOREX
* FUTURE FOREX
Traders in FOREX are described collectively as the FOREX. There is however, no corresponding market place. The FOREX market is not located in a single place like stock exchanges (e.g. NYSE) or the futures market (e.g. CBOT); THAT IS, TRADING DOES NOT OCCUR ON A "FLOOR". Instead transactions are carried out by telephone, internet or telex from many separate locations, often in different cities and countries.
* FUTURE FOREX
Traders in FOREX are described collectively as the FOREX. There is however, no corresponding market place. The FOREX market is not located in a single place like stock exchanges (e.g. NYSE) or the futures market (e.g. CBOT); THAT IS, TRADING DOES NOT OCCUR ON A "FLOOR". Instead transactions are carried out by telephone, internet or telex from many separate locations, often in different cities and countries.
Many outsider think of FOREX trading as requiring arcane skills and great sophistication and this view is reinforced by the jargon used by FOREX dealer. In fact, these technical terms actually cloak some rather straight forward meanings.
We at EDGAR International Company Limited, strive to overcome the most seemingly tedious issue by highlighting the relevant elements needed in a successful FOREX transaction. Essentially, our concentration lies on 4 major currencies which are all traded against or with the U.S dollar. They are :
* British Pound Sterling
* Japanese Yen
* Swiss Franc
* Euro currencies
* Japanese Yen
* Swiss Franc
* Euro currencies
Why FOREX has become a popular investment nowadays?
The purpose of engaging in foreign exchange is to anticipate price fluctuation for monetary gain. For this one must be willing to assume risk in exchange for profit. Many investors choose to enter the foreign exchange trading business for the following reasons:
| * | There is worldwide coverage of Social, Political and Economic news that influence exchange rates. |
| * | The market offers 20 hours non-stop entry and exit opportunities. |
| * | There is no ruling body. I.e., the market cannot be monopolized by any government, central bank or organization. |
| * | There is no time limit to hold position(s). |
| * | Instant execution of entry and exit orders. I.e., buy/sell can be done. |
| * | immediately upon happening of any important incident that may affect the exchange rate and this help to maximize profits or minimize losses. |
| * | Numerous strategies are available to protect position(s) against sudden adverse price fluctuations. eg, locking. |
| * | The leverage facility allows investors to earn interest on the full contract value while using a relatively small deposit. |
