The international currency Forex market seems to the majority not clear and closed phenomenon. However to answer a question «what is such Forex?» can any who sometime changed a foreign currency in exchange office.
On Forex people buy and sell currency as any other goods, hence, it submits to all laws of the market. The price will depend on how sellers and buyers will agree among themselves, what demand will be and what offer for this or that currency. Sensitively reacting to each change of a situation in the market, the prices for currencies fluctuate every second.
But it is not necessary to think that you have to agree directly with the buyer or the seller as it occurs in usual exchange office. The participant of the Forex market only traces position of the price for currency he wants to buy or sell, and while it reaches position favourable to the player, makes the transaction pressing several keys on the keyboard. The bank on which is account of the participant does all other actions.
Where territorially is there Forex market? It is everywhere, where it is possible to be connected to the Internet to see on the screen of other people action, also as you working on the computer. Simultaneously on Forex there are people from different parts of the world, therefore this market is not closed within all working week. But how was there a money trade before Internet occurrence? The matter is that to earn on a currency exchange till 70th years of the twentieth century it was impossible. All currencies had the fixed price in dollars, which has been rigidly adhered to gold. Such measure was necessary to endure post-war ruin and an economic crisis. And only after 1971 of the price for currencies became floating. And nobody can already tame growth or falling is hard currencies. Even the Central banks of the states depend on opinion of Forex; after all they are its players. And the daily day volume of transactions fluctuates from 1 to 3 million dollars.
Really it is possible to play on the market with such turnover if you have only about 100 dollars. Certainly, yes, but here to the help dealing centers come. They on behalf of the client take from bank where is located an account of the player, some kind of the credit – the sum increased in 100 times from the size of the account. This operation is called leverage. Now you have possibility to operate on Forex the sums in 100 times more your real, and do not worry, you risk only with your money. But it is not necessary to compare risk in the market Forex and risk, for example, in a casino. In a case from a casino all depends on good luck, you do not possess the tools, allowing predicting ball movement. The risk on Forex is limited only to your knowledge in the field of the economic theory and analysis systems.
It is a must to gather as much information about Forex as possible. Because this knowledge will help you not to lose much money on Forex trading or Forex investment.
Surely not a single piece of knowledge can be rock solid guarantee against losses, in particular on Forex, but sometimes even one Forex book can save you much money.
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