foreign exchange market ( forex )

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

• $ 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 . 

[ 1 ]  According to data from the International Financial Services , London ( IFSL ) , the overall daily turnover of traditional foreign exchange markets reached an average of 2.7 billiun total value of the US dollar in April 2006. The estimate is based on data from the middle years of the Foreign Exchange Market Committee ( Foreign Exchange Committee ) in London , New York , Tokyo and Singapore
[ 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