Forex Overview
Each day, an incredible number of trades are created in a forex market called Forex. The term "Forex" directly stems from the beginning of two words - "foreign" and "exchange". Unlike other trading systems such as the stock market, Forex will not involve the trading of any goods, physical or representative. Instead, Forex operates through buying, selling, and trading between the currencies of varied economies from all over the world. Because the Forex market is truly a global trading system, trades are made 24 hours a day, five days a week. In addition, Forex isn't bound by any one control agency, meaning that Forex may be the only true free market economic trading system on the market. By leaving the exchange rates out of any one group's hands, it is a lot more difficult to even try to manipulate or corner the currency market. With all of the advantages associated with the Forex system, and the global range of participation, forex may be the largest market in the entire world. Anywhere between 1 trillion and 1.5 trillion equivalent USA dollars are traded on forex every day.
海外FX 比較 operates mainly on the concept of "free-floating" currencies; this could be explained best as currencies that are not backed by specific materials such as gold or silver. Prior to 1971, a market such as Forex wouldn't normally work due to the international "Bretton Woods" agreement. This agreement stipulated that all involved economies would make an effort to hold the value of these currencies close to the value of the united states dollar, which was held to the worthiness of gold. In 1971, the Bretton Woods agreement was abandoned. AMERICA had run a huge deficit through the Vietnam Conflict, and began printing out more paper currency than they might back with gold, producing a relatively higher level of inflation. By 1976, every major currency worldwide had left the machine established under the Bretton Woods agreement, and had changed into a free-floating system of currency. This free-floating system meant that every country's currency could have vastly different values that fluctuated predicated on the way the country's economy was faring in those days.
Because each currency fluctuates independently, it is possible to make money from the changes in currency value. For instance, 1 Euro used to be worth about 0.86 US dollars. Shortly thereafter, 1 Euro was worth about 1.08 US dollars. Those who bought Euros at 86 cents and sold them at 1.08 US dollars were able to make 22 cents profit from each Euro - this may equate to vast sums in profits for those who were deeply rooted in the Euro. Everything in forex is hanging on the exchange rate of various currencies. Sadly, very few people realize that the exchange rates they see on the news and find out about in the newspapers every day could possibly be in a position to work towards profits with the person, even if these were just to create a small investment.
The Euro and the united states dollar are probably both most well-known currencies which are used in the Forex market, and therefore they're two of the very most widely traded in forex. As well as the two "kings of currency", there are several other currencies which have fairly strong reputation for Forex trading. The Australian Dollar, japan Yen, the Canadian Dollar, and the brand new Zealand Dollar are all staple currencies used by established Forex traders. However, you should note that of all Forex services, you won't see the name of a currency written out. Each currency has it's own symbol, just as companies involved in the stock market have their very own symbol based from the name of these company. Some of the important currency symbols to know are:
USD - United States Dollar
EUR - The Euro
CAD - The Canadian Dollar
AUD - The Australian Dollar
JPY - JAPAN Yen
NZD - The New Zealand Dollar
Although the symbols could be confusing at first, you'll get used to them after a while. Remember that each currency's symbol is logically formed from the name of the currency, usually in a few type of acronym. With a little practice, you'll be able to determine most currency codes without even having to look them up.
Some of the richest people in the world have Forex as a big part of their investment portfolio. Warren Buffet, the world's richest man, has over $20 Billion invested in various currencies on the Forex market. His revenue portfolio usually includes well over one-hundred million dollars in profit from Forex trades each quartile. George Soros is another big name in neuro-scientific currency trading - it really is believed he made over $1 billion in benefit from a single day of trading in 1992! Although those forms of trades have become rare, he was still able to amass over $7 Billion from three decades of trading on the Forex market. The strategy of George Soros also would go to show you do not need to be too risky to create profits on Forex - his conservative strategy involves withdrawing large portions of his profits from the marketplace, even when the trend of his various investments appears to still be correlating upward.