The Forex Market

Surely you've heard of him, the famous market Forex. His name is present in all media, is the fashion market for several years and the rise and growth of the Internet have contributed greatly to the expansion in popularity of the international currency market Forex. This article will seek to give a proper introduction to the world of Forex.



Let us first outline what we mean. Forex is the largest capital market in the world, it is estimated that their daily transactions are around U.S. $ 3 trillion. It is a market whose transactions are conducted at virtual, and that does not have a physical center where participants are located.



Let us now Forex market participants. Can be said that Forex market exists wherever traded currencies. With this we can imagine that the Forex market participants are many. . They can be classified as follows: central banks and banking in general, corporations, governments, other financial markets, traders large and small coins, to mention only some of the groups of participants that can be classified at the time.



Forex has a structure concerned to define it? To define a structure in forex, we can describe what are its main operating centers or regions, ie those submarkets where do most of the transactions of foreign exchange market. We have three major regional markets in Forex. The first would be in the U.S. market, whose main trading center is in New York (New York Stock Exchange or stock exchanges of New York). The European market, whose main trading center in London (London Stock Exchange or London Stock Exchange). Finally, we have the Asian market, whose business center is Tokyo (Tokyo Stock Exchange or Tokyo Stock Exchange).



Why prices vary in the forex market? The foreign exchange market is defined as all markets by the forces of supply and demand. In a world where markets are increasingly interconnected, it is normal that there is an international currency market. Whenever some economic actor wants to make a payment in foreign currency must be purchased in the country where they want to make that payment, if that country uses a currency different from that used in their own country. There are, therefore, a number of situations that will result in a demand for foreign currency. Consider, for example, companies that buy oil estadoudinenses the Middle East. Or if someone in Spain for sending money abroad. In such cases, demanding will most likely currencies.



Those would be very basic market movements. Apart from such transactions, has developed a market for buying and selling currencies for speculative purposes. The participants aim to make money buying and selling currencies after a higher value. It is this part of the market which is usually referred to as Forex, while others use the term to define the currency market in general.



Learn well before you start making the world Forex. You can start doing the Forex using free books available online. If you're starting, you should investigate everything relevant to Forex for beginners.