ABOUT FOREX
Foreign Exchange ("FOREX")
Foreign Exchange (“FOREX”) is a worldwide
market. With the political climate changing daily, and
with the current economic uncertainty in the largest
world economies, the foreign exchange market is becoming
more active than ever. The daily trading volume is equivalent
to billions of U.S. dollars traded worldwide. The political
situation and the economic factors of a particular country
are reflected in the strength of its currency. Foreign
investment will migrate to countries that have a projected
stability, both political and economic, but investors
shy away from those countries where changes are rapid
or uncertain. As a result, highly volatile currency
markets are available where well-informed and smart
investors are able to manage business risks as well
as speculating in hopes for significant profits.
Moreover, international trade often requires that the
money of one country must be exchanged for that of another
for settlement of business transactions. Institutions
and corporations in the market place need a certain
currency to complete a deal, or to guard themselves
from the effects of currency swings and changes in exchange
rates. This system involving the exchange of money of
different countries has evolved into a sophisticated
over-the-counter network of institutional spot foreign
currency traders.
FOREX is a round-the-clock-market, dictated mainly
by Asia, Europe and the United States, with the New
York market of financial institutions being the most
active, as a result of the London/New York time overlap.
Like stocks, gold and real estate investments, FOREX
has become a very important tool for the investment
community. As a speculator, investing in FOREX provides
certain additional advantages:
1.Availability
2.Maximum
Liquidity
3.Attractive
Pricing
4.Execution
5.No
Expiration Date
6.Deliverable
Contracts
7.Hedging
Tool
8.Low
Commission Fees
Contract
Systems
Margin
Requirements (US Dollars)
Sample
Trade
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