lunes, 24 de agosto de 2015

FEATURES OF THE CURRENCY MARKET OR FOREX



The factors influencing exchange rates are very numerous, making this market is very volatile. This volatility allows forex traders to profit from the upward or downward movements of currency pairs presented.

What makes the Forex market different?

A 24-hour market: Unlike other markets, Forex is open 24 hours a day. This is because it is a global market where participants can invest from different parts of the world.

Purchase money with money: Unlike other markets where money is exchanged for physical goods (example gold) or a financial instrument in the Forex market is money that is exchanged for money. Currencies are traded against each other, thus transactions are always based on currency pairs.

No physical headquarters: In this market there is no physical headquarters of exchange as the Madrid Stock Exchange or New York. This means that there is no center where price data can be obtained or where commercial activity is concentrated. The largest volume of transactions taking place in the interbank market, where banks trade with each other on behalf of individual customers. However, individual investors can also operate here with ease through intermediary companies, suppliers.

One of the biggest attractions of investing in currencies is that individual investors can make huge profits in this market (thanks to the leverage effect) without leaving home. Investors today just participating in the market from home using their accounts to buy or sell currencies. Besides now many brokers are now offering trading accounts compatible with mobile devices, allowing investors to remain active in this market at any time.

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