Читать книгу Available about Forex trading in Russia - Oleg Papkov - Страница 3

The Forex market, with a turnover of 4 trillion dollars a day, is a huge ocean. And everyone wants to take their stream away from this ocean.

Forex (Forex, sometimes FX, from the English Foreign Exchange – “foreign exchange”) – the market for interbank currency exchange at free prices (the quote is formed without restrictions or fixed values). The combination “forex market” (English: Forex market, FX-market) is often used.

In the English-speaking environment, the word “Forex” can mean not only mutual currency exchange, but also the whole set of currency transactions, as well as foreign currencies as such. In Russian, the term Forex is usually used in a narrower sense-it means exclusively speculative currency trading through commercial banks or dealing centers, which is conducted using leverage, that is, margin currency trading. At the same time, the terms “international forex ‘and’ international forex market ‘are a tautology, due to the fact that’ foreign exchange” initially implies operations with foreign currency.

Operations on the forex market for purposes can be trading, speculative.

I.e., part of the operations on the market is carried out purely for the purpose of purchasing significant amounts of a particular currency. These are purely trading operations. And hence, in particular, significant changes in the exchange rate of a currency instrument, a currency pair.

The Forex market (foreign exchange market) is an interbank market that was formed in 1971, when international trade moved from fixed to floating exchange rates. The main principle of Forex is to exchange one currency for another. At the same time, the exchange rate of one currency relative to another is determined by the supply and demand of market participants. The exchange is made according to the ratio to which both parties to the transaction agree.

Forex is not a “market” in the traditional sense of the word. It does not have a single center, it does not have a specific trading place, such as a currency futures market or a commodity exchange. Trading takes place over the phone and through computer terminals simultaneously in hundreds of banks around the world. Thanks to the emergence and development of the Internet, it became unnecessary for a private investor to resort to the services of large banks, and it became possible to conduct trading via WWW from their home or office computer.

Hundreds of millions of dollars are bought and sold every few seconds, which is the essence of so-called currency trading. The ability to generate income in the foreign exchange market is based on the simple fact that each national currency is the same commodity as wheat or sugar. And its cost is just as relative. Since the world is changing faster every year, the economic conditions of a particular country (labor productivity, inflation, unemployment, etc.) are increasingly dependent on the level of development of other countries. And this affects the value of its currency relative to other currencies and causes changes in exchange rates.

We will also consider the trade of a private trader and the speculative trading mode.

Deposit – the amount of funds on the trading account with the broker.