Forex market is the international money market. Appellative Forex is derived from the exchange of foreign currencies: Foreign Exchange, or FOREX for short. Forex is one of the easiest and financial markets appear since the 1970s. Due to the volume of money market which is very large, the Forex market is the most dynamically developing.

Rotating daily Forex trading can be reached 4 billion USD, which is 30 times greater than the volume in the U.S. stock market. Like other markets, Forex trade various goods. In the case of money market, the goods consists of national currencies. The fundamentals, the currency exchange rate determined by government institutions and commercial companies around the world who need to convert the currency to be traded abroad. Trade is up 5% of the rotation volume of money market in general. Other 95% comes from speculative trading of the trader who tried to take advantage of buy and sell currencies with the exchange rate fluctuation. Feature pairs that money is important is stability.

Danger that the financial markets comes from the main decline in suddenly, or when the stock index kolaps. However, unlike the stock market, the Forex market does not go down. When the stock has decreased, the destruction came. But if the dollar value going down, this means that other currencies become stronger.

Let’s see the example below yen currency. In a few months at the end of 1998, the yen price of the currency down by 25% against the dollar. On that day, the decline in currency values measured in USD tenth percent. However, the decline in USD, as in the other currencies, it can not be destroyed by the money market, and trading will continue as usual. This is the key to market stability, which also applies to business. Currency trading is a tool the most liquid and secure.

The speculator has a very big interest in the currency or liquid foundation. Currently, more than 85% of all transactions are in the base currency, as follows: United States Dollar (USD), Japanese Yen (JPY), Euro (EUR), British Pounds Sterling (GBP) Swiss Frank (CHF), Canadian Dollars (CAD) and Australian Dollar (AUD).

It is important to know that trading currency adlaah the notation system of currency. This system is very simple if you remember that all currency pairs recorded in the same way. Two currency symbol on both sides there is a slash “/”. The correlation of the cost of each other represent the value of the currency pairs: EUR / USD (exchange rate Euro to U.S. Dollars), GBP / USD (British Pounds Sterling exchange rates to the United States dollar), USD / JPY (exchange rate U.S. dollars to Japanese Yen ), and so on.

When determining a currency pair symbol, a slash (”/”) and usually there is no written notation currency pairs: EURUSD, GBPUSD, USDJPY.

The concept of money market operations actually quite clear: you get the advantage of one of the movement of currency exchange rate movements against other currencies. The entire market consists of currency exchange rates of currency pairs, where one currency relasional reflects the cost of one of the national currency against other national currencies. For example, when people say that for 1 euro likely get 34 cents, then this means that the pair exchange EUR / USD 1.3400 with the same.

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