Fundemantals Of Forex Market For Investors
The rapid growth of Forex market with the introduction of a flexible exchange rate system in global money markets has become an important position in financial markets today. Forex consists of the abbreviation of English Foreign Exchange as terminology. In the Forex market, investors are trading in a wide range of investment instruments, including gold, silver, corn, cocoa, petroleum, as well as the world’s most popular stocks.
Participants in the Forex market constitute a large set of institutional and individual investors, including banks, portfolio managers, insurance companies, and hedging funds. The world’s largest and fastest-growing financial market with about $ 5.5 trillion in transaction volume plays an important role in bringing people closer to the Forex market.
Forex Market Networks
The dynamics of the Forex market are important trade centers in the world such as London, New York, Tokyo, Singapore, Frankfurt, Zurich, Paris, and Hong Kong. Transactions with finance centers located on very different geographies through the internet network; Over an electronic network between banks, institutions and individual investors, 24 hours a day, 5 days a week. Forex is a very active market today where investors of all sizes can only access the Internet at any time of day.
Advantages of Forex Market
The most fundamental feature of the Forex market is the leverage system. The investor may process up to 100 times of the collateral. However, it should not be forgotten that leveraged trading has a high profit margin as well as a high loss risk.
Forex market offers very different options for investors in terms of trading orders. The investor can freely define the profit and loss points for each position he / she opens. It may generate valid orders until canceled. These orders are executed by brokers even when the trading platform is closed.