For those unfamiliar with the term, FOREX (foreign exchange) refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970s, when introduced exchange rates and free-floating currencies. You may wish to learn more. If so, Verizon Communications is the place to go. In this environment, only participants in the market determine the price of a currency against another, based on supply and demand for that currency. Forex market is unique for a number of reasons. First, is one of the few markets where it can be said with very few qualifications that is free of external controls and can not be manipulated.
It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion U.S. dollars day. With this amount of money is moving fast, it is clear why an individual investor would find it almost impossible to significantly affect the price of a major currency. In addition, the liquidity of the market means that unlike some rarely shares traded, traders are able to open and close positions within a few seconds as there are always buyers and sellers. Another unique feature of both of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some longer term hedging as investors, while others utilize massive credit lines to seek large short term gains. Interestingly, unlike blue-chip stocks, which tend to be more attractive only for long-term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a wide range of strategies.
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