Forex Investment - Where to Start
The FOREX market ( foreign currency market, FX ) is a currency market where the trading or buying and selling of foreign currencies takes place. It is where bank and other financial institutions facilitate this type of trading. Transactions are done where involved parties purchase a sum of one currency in exchange for paying the sum of another. The FX market is presently the world's largest and most liquid of financial markets, which includes trading between banks, central banks, corporation, governments, currency investors, and other institutions. The market's average daily volume in the world foreign exchange and related markets is continually growing with a turnover amounting to over 3 trillion US dollars - and still rising. Investing in FOREX can be done through Investment Management Firms, Retail Forex traders, banks, central banks, and hedge funds.
FX market's purpose is to facilitate investment and trade the world over. It's a very unique market because of the sheer size of its trading volume, its being extremely liquid, its geographical spread, its long trading hours, has exchange rates that can be influenced by various factors, and lets investors gain high profits even with low margins due to the nature of its large trading volumes.
FOREX Investment management firms use the FOREX market to facilitate transactions from managed accounts on behalf of clients like endowments and pension funds. For example, invest managers who have international equity portfolios can buy and sell currency majors to pay for purchases of foreign equities.
Retail FOREX traders compose a small fraction of the trade market that participate indirectly through banks and brokers.
Interbank market caters mostly to the majority of daily commercial traders and of the speculative investment traders. On occasion a bank will do trading at the request of a valued client, but much of its trading is for its own account.
Central banks play a vital role in the foreign exchange markets as it possesses a vast financial reserves and can influence the supply of money, inflation and interest rates. With substantial foreign exchange reserves, they can stabilize the market wherein they can buy currencies which are at a low and sell these when at a high based on their more precise trade information.
Hedge funds are FOREX investment funds open to a limited range of wealthy and professional investors and are able to undertake a wider range of investment and trading activities than regular investment funds. They pay a performance fee, and in return are exempted from regulations governing short selling and leveraging. They compose part of the speculative market that can take control of billions of dollars in equity if economic factors are in their favor. - 23212
FX market's purpose is to facilitate investment and trade the world over. It's a very unique market because of the sheer size of its trading volume, its being extremely liquid, its geographical spread, its long trading hours, has exchange rates that can be influenced by various factors, and lets investors gain high profits even with low margins due to the nature of its large trading volumes.
FOREX Investment management firms use the FOREX market to facilitate transactions from managed accounts on behalf of clients like endowments and pension funds. For example, invest managers who have international equity portfolios can buy and sell currency majors to pay for purchases of foreign equities.
Retail FOREX traders compose a small fraction of the trade market that participate indirectly through banks and brokers.
Interbank market caters mostly to the majority of daily commercial traders and of the speculative investment traders. On occasion a bank will do trading at the request of a valued client, but much of its trading is for its own account.
Central banks play a vital role in the foreign exchange markets as it possesses a vast financial reserves and can influence the supply of money, inflation and interest rates. With substantial foreign exchange reserves, they can stabilize the market wherein they can buy currencies which are at a low and sell these when at a high based on their more precise trade information.
Hedge funds are FOREX investment funds open to a limited range of wealthy and professional investors and are able to undertake a wider range of investment and trading activities than regular investment funds. They pay a performance fee, and in return are exempted from regulations governing short selling and leveraging. They compose part of the speculative market that can take control of billions of dollars in equity if economic factors are in their favor. - 23212
About the Author:
To trade forex starts with a desire to learn and a drive to become a great trader. Learning how to trade forex takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.
posted by X - Men @ 2:51 AM
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