Market Forex: The Basic Information

Forex is the international exchange market which turnover exceeds 2 billion dollars a day, the transparency and absolute liquidity and high volatility does it potentially the most profitable of all segments of world financial markets.

The world interbank exchange market Forex has taken a today’s form after the termination in 1971 of action of Bretton-Vudsky system of adjustment of currency exchange rates and transition to “floating rates” of the Jamaican system. From now on Forex became the most dynamical and liquid segment of financial market.

Essential difference of market Forex from all other markets is its off-exchange character, that is absence of any certain trading platform. Forex is the huge network, connected among themselves by means of telecommunications, market makers (central and commercial banks, the investment and broker companies, regional currency stock exchanges, etc.), located worldwide and round the clock working as the uniform mechanism. Trade in currency in the market is performed by phone or through computer terminals of electronic broker and trading Internet systems.

Principal currencies on which share it is necessary the basic turnover in market FOREX are US dollar, the euro, Japanese yen, the Swiss franc and English pound sterling.

Work in the market allows corporate and private investors to derive high profit from change of national currency rates of the leading countries of the world 24 hours a day. Possibility of carrying out of operations in the market Forex for private traders is facilitated including at the expense of wide application of systems of Internet trading.

Possibility of carrying out of conversion arbitrage operations (transactions on purchasing/sale of one foreign exchange for other foreign exchange) for the sums repeatedly exceeding the initial mortgage deposit which can be rather low, does the exchange market accessible not only for banks and the companies-exporters, but also for private persons.

The basic advantages of the exchange market Forex are:

- High reliability of banks;
- Round-the-clock servicing in the market Forex;
- A considerable quantity of quoted currency pairs;
- Possibility of the conclusion of transactions in the market of currencies on потоковым to the prices;
- Narrow spreads for market volumes сделокв conformity with the standard practice of market Forex;
- The modern Internet trading system giving possibility of carrying out of operations both in the market Forex, and at the Russian stock exchanges;
- Possibility of fulfillment of operations in market Forex as through the terminal of system of Internet trading, and by phone.