Forex, an acronym for Foreign Exchange (Foreign Exchange Currency). Also known as International Currency Market.
The foreign exchange market (Forex or FX) exists wherever one currency is traded with another (such as an exchange house). The market is largely the world’s largest, in terms of value of turnover, and includes negotiate among large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions . The retailers (small speculators) are a small part of this market and can participate directly by companies dedicated to providing services TRADING or indirectly through brokers or banks and can be targeted by fraudsters on the currency.
The foreign exchange market is unique because:
* The volume of transactions
* The extreme liquidity of the market
* The large number and variety of traders in the market
* Its geographical dispersion
* The time it takes place – 24 hours a day (excluding weekends).
* The variety of factors that affect changes
* The volume that is traded internationally in foreign currencies, with a daily average of U.S. $ 1.9 trillion in April 2004 according to the 2004 triennial survey of the Bank for International Settlements
* U.S. $ 1.300 billion in derivatives, eg.: (U.S. $ 200 billion absolute U.S. $ 1.000 billion in foreign exchange and U.S. $ 100 billion in FX options)
The foreign exchange forward contracts were introduced in 1972 at the Chicago Mercantile Exchange or the Chicago Commodities Exchange and is one of the contracts that are traded more actively. The volume of foreign exchange forward has grown rapidly in recent years, but says only about 7% of the total volume of the foreign exchange market, as Wall Street Journal Europe (5/5/06, P. 20). The ten most active traders account for nearly 73% of volume to be traded, according to Wall Street Journal Europe, (2/9/06 P. 20).
These large international banks provide the market with purchase prices (bid) and sell (ask). The spread is the difference between these rates. Usually the spread in most traded currencies is just 1-3 pips or basis points. For example, the bid / ask at a price of EUR / USD could be 1.2200/1.2203. The minimum size is generally negotiated is $ 1,000,000. To make money in this market is starting base of 100 dollars.
So people who Forex to earn money, as daily trader , are as same as programming freelancers. They work from home, earn money, watch monitor whole day….