or abbreviated forex is a kind of trade or transactions of a country 's currency against another country's currency ( currency pair / pair ) involving major financial markets in the world for 24 hours continuously . The movement of the foreign exchange market began spinning out of New Zealand and Australian markets which took place at 5:00 to 14:00 pm , continues to Asian markets of Japan , Singapore , and Hong Kong, which took place at 7:00 to 16:00 pm , to European markets such as Germany and the UK which took place at 13:00 -22.00 pm , to the US market which took place at 20:30 to 10:30 pm . In the development history , the central bank -owned countries with foreign currency reserves even the largest can be defeated by the forces of the free market foreign exchange . According to the survey BIS ( Bank for International Settlements , the central bank of the world) , who performed at the end of 2004 , the value of the foreign exchange market transactions reaching more than US $ 1.4 trillion per day . Given the level of liquidity and accelerating the movement of high prices , foreign exchange has also become the most popular alternative because of the ROI (return on investment or return on investment ) and profits that will get is more than the average trade in general . Due to the rapid movement , then the foreign exchange market also has a high risk .
The foreign exchange market is a market that is unique because:
volume of trade
very big market liquidity
the number and variation of traders in the foreign exchange market
geographical distribution
period of their trade 24 hours a day ( except weekends )
variety of factors that affect exchange rates Image - Global foreign exchange market turnover2.gif
According to BIS , the average foreign exchange market turnover per day the world was estimated worth
[ 2 ] In foreign exchange trading directly ( OTC , brokers and traders to negotiate directly without going through the exchange or clearing . Geographically the largest trading centers located in London , England , where according to IFSL estimated to have increased its contribution from 31.3 % in April 2004 to 32.4 % in April 2006
The foreign exchange market is a market that is unique because:
volume of trade
very big market liquidity
the number and variation of traders in the foreign exchange market
geographical distribution
period of their trade 24 hours a day ( except weekends )
variety of factors that affect exchange rates Image - Global foreign exchange market turnover2.gif
According to BIS , the average foreign exchange market turnover per day the world was estimated worth
- $ 3.21 trillion , which is divided into :
- $ 1,005 billion in spot transactions
- $ 362 billion in market to deliver contracts ( forward contracts )
- $ 1,714 billion in the swap market
- $ 129 billion is estimated as the difference in reporting In addition to outside turnaround "traditional"This , of
- $ 2.1 trillion traded in the derivatives market . Foreign currency contracts were introduced in 1972 at the Chicago Mercantile Exchange is growing rapidly in recent years , but the volume is still only 7% of the total trade volume of the foreign exchange market .
[ 2 ] In foreign exchange trading directly ( OTC , brokers and traders to negotiate directly without going through the exchange or clearing . Geographically the largest trading centers located in London , England , where according to IFSL estimated to have increased its contribution from 31.3 % in April 2004 to 32.4 % in April 2006
