Simple Practice Forex Trading
Many companies offer you business opportunities nowadays. We would like to introduce you FOREX trading.
Most people have little or no knowledge of currency trading. Yet, it is in foreign exchenge where big banks quietly make huge profits. In the pastq minimum deposits of $500 000 or more were required to tap into this market. But not anymore! Smaller investors can now open accounts with as little as $200 or even smaller and trade FOREX.
Many companies offer FOREX information, FOREX strategies, FOREX signals and etc..... There are no doubt, valuable and helpful, but often confusing and hard to understand, especially if you are beginner.
We offer you something different....
Our team is specializing in building complete FOREX systems which are easy to learn and profitable. We will learn you to trade FOREX. Something more - we will build YOUR system, created to be easy for you to learn and practise, and which will fulfil YOUR financial needs.
No matter if you are a FOREX trader already or just have heard about FOREX, we will guide you thought the full process of learning the basics, open you account, and start your trade!
The trading of foreign currency involves substantial risks, including complete possible loss of principal plus other losses and may not be suitable for all investors. You should make an independent judgment as to weather trading in foreign currency contracts is appropriate for you in light of your financial condition, investment experience, risk tolerance, and other relevant factors.
A brief history of FOREX market
The Breton Woods Agreement was initiated in 1944 in an effort to keep cash from draining out of war-ravaged Europe. Currency values were pegged to the U.S. Dollar, which was then pegged to the price of gold. The modern era of foreign exchange first emerged in 1971 with the collapse of the Bretton Woods Agreement. The U.S. Dollar was no longer convertible into gold, signaling an increase in currency market volatility and trading opportunities.
The collapse in 1973 of the subsequent Smithsonian and European Joint Float agreements signaled the true beginning of the free-floating currency exchange system that drives the markets today. Starting in the 1980’s, computer technology extended the reach of the exchange marketplace. Today, the values of the major world currencies are independent of each other, with intervention available to the states only through the central banking system.
Foreign Exchange Markets – size and scope
The foreign exchange market dwarfs the combined operations of the New York, London, and Tokyo futures and stock exchanges. Daily turnover on the spot market is approximately US$1.5 trillion per day.
Spot transactions and forward outright FX trading takes place in the inter-bank market. 51% of the market is in spot FX transactions, followed by 32% in currency swap transactions. Forward outright FX transactions represent another 5% of this daily turnover. Options on inter-bank FX transactions making up another 8%. Therefore the inter-bank market accounts for 96% of the global foreign exchange market, with the remaining 4% being divided among all the global futures exchanges.
The role of Forex in the Global Economy
Over time, the foreign exchange market has been an invisible hand that guides the sale of goods, services and raw materials on every corner of the globe. The forex market was created by necessity. Traders, bankers, investors, importers and exporters recognized the benefits of hedging risk, or speculating for profit. The fascination with this market comes from its sheer size, complexity and almost limitless reach of influence.
The market has its own momentum, follows its own imperatives, and arrives at its own conclusions. These conclusions impact the value of all assets - it is crucial for every individual or institutional investor to have an understanding of the foreign exchange markets and the forces behind this ultimate free-market system.
Inter-bank currency contracts and options, unlike futures contracts, are not traded on exchanges and are not standardized. Banks and dealers act as principles in these markets, negotiating each transaction on an individual basis. Forward "cash" or "spot" trading in currencies is substantially unregulated - there are no limitations on daily price movements or speculative positions.
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