FOREX Introduction

Foreign exchange market, or which is known as FOREX is the largest financial exchanges in the world with a daily transaction volume reaching more than 2 trillion U.S. dollars. Compare this with the daily transaction volume of the New York stock market is only 25 billion U.S. dollars.

Then what is traded in FOREX? Of course, money. Stock exchange is a transactions single currency with another currency. The basic principle, the trader buys a currency type at low value and resell it at a high value, or otherwise sell a currency at a high value and buy them back when the currency fell in value. These currencies are traded through a dealer / broker, and are always traded in currency pairs. For example Euro U.S. Dollar (EUR / USD), U.S. Dollar and Japanese Yen (USD / JPY), British Pound and Swiss Franc (GBP / CHF), and so forth.

In contrast to other financial markets like stocks that have a trade center with the location and time specific trade, Forex has no perdangangan center. Forex trading via interbank transactions that occurred throughout the world and takes place continuously throughout the day.

Until the end of 1990, the stock exchange can only be followed by financial institutions, large and private individuals who have large capital. In those days you just can participate in forex transactions if it has 10 hinggal initial capital of 50 million dollars. Forex originally only done by the bankers in order to limit the risks due to currency fluctuations. Forex is not for traders, small traders like us: us and you. But with the development of internet technology, the forex brokers and dealers can split large transactions required in the forex transactions with a smaller volume so that the trader-trader with limited capital can come and participate. Now many common forex brokers that require initial deposits under $ 500 U.S., and some brokers even provide initial deposit requirement of only U.S. $ 10 or less.

Forex-trading now is available to anyone. All you need is a computer with internet connection is good enough and forexology material contained in this site!