The Forex market

What is the Forex market?

The Forex market is an acronym of the foreign exchange market, also called the currency market.

What is traded in the Forex market?

Money is so easy!

Currencies bought and sold freely.This is the simultaneous buying of one currency and selling another.

For example, have some insider information you think that increase the euro buy euro pair (or EUR/USD) to führt.Wenn EUR/USD pair buy you're actually EUR purchase and sale of US Dollar.Beim purchase of EUR is also said that you "long" sindWenn sell EUR EUR it is also said that you are "short" EUR

More than 80% of the volume is we call generates the seven major currencies:

US dollar (USD)

The euro (EUR)

The British pound (GBP)

The Swiss franc (CHF)

The Canadian dollar (CAD)

The Australian dollar (AUD)

The Japanese yen (JPY)

When did you start at all?

You can not say anything to a single event begann.Eine series of events happen and at the end of it resulted in the Forex market, as we now know it.

It started when the Bretton Woods agreement was abandoned around 1971 finally.

In this agreement, the participating countries had their currency which either the gold or dollars gekoppelt.Von 1973 introduced the most powerful countries around the globe a free exchange-rate system, where it was vary lassen.Es their currencies driven by the market, or more specifically, through the forces of supply and demand if the Forex market to speculate, hedge as well as other reasons was available.

It was not until 1997, when available (margin trading), offers Forex market for individual investors and traders by online trading capabilities and leverage distributors around the world was great opportunities to benefit from the Forex market.

The Forex market is now the most liquid financial market in the world with a generated volume of almost $ 2 trillion (source: bis) on a daily basis (more than all other financial markets combined).

Where are held all trades?

Unlike other financial markets, there is no physical location where all transactions on the Forex market are stattfinden.Alle transactions by means of telecommunications (telephone, online platforms, etc.) conducted between banks, large institutions, investors, traders, etc..This is known as an over the counter market or OTC.

Brain feeder - think the volume of all transactions in the Forex market is measured? leave the stock market in perspective, all transactions in the NYSE (New York Stock Exchange) by the same NYSE are placed, so are you able to measure, how many short- and long-term positions at any point in time placed werden.Aber being as no physical locations where all transactions on the Forex market are placed, the volume measured? or it is even possible that measuring volume of all transactions in the Forex market?