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What is Forex?
ОглавлениеThe modern international market of a currency exchange which is better known under the reduced English name Forex (for exchange – valyutoobnenny) represents very difficult, multidimensional and even multystoried phenomenon. It the powerful and difficult regularities unknown to most of simple users and absolutely little-known even for, it seems, wave of successful experts on this market operate.
The matter is that initially this interbank market was created to simplify work of international trade. At emergence of the international payments constant need to exchange considerable volumes of currencies led to the fact that banks had to carry out long and difficult procedure of mutual examination and clearing in attempts to learn who has enough the necessary currency and who can sell it at more convenient price. Electronic general platforms on which banks provided on the one hand, the money (liquidity), and with another – own offers on an exchange of certain sums (quotation) were as a result created. As a result Forex worked approximately the same as works stock or any resource exchange is ordinary: the parties offer the prices and when the offer price and the buying price meet among themselves system automatically carries out matching – reduces the necessary volumes and performs operation between them. As a rule, it is made for fractions of a second – this process can be observed in a so-called “exchange glass” in which data on concrete the quotation of various participants of the market flow and it is visible how they are mutually closed.
However, there is a lot of such electronic platforms which are engaged in the organization of a meeting of big players of the financial market. At least 7 the largest of them define the person Forex today. Among them there are platforms of such giants as the Swiss bank Dukascopy, the most powerful electronic platform of an exchange (ECN – Electronic Communication Network) – Currenex and others. However, these platforms cannot serve small orders for trade. For them even several million dollars during an exchange are a small money which does not deserve attention. Therefore in order that smaller users got access to the market, brokers offer the services. Having received trade orders and money of a large number of users, they connect them in one “bunch” which volume of liquidity is already adequate to inquiries of ECN and send them for the real auction. Also undertake “razrulivaniye” of all questions of recalculation of data with ECN to the end user who has no millions, and there are only a few thousands of dollars.