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forex
As Forex (Foreign Exchange market,forex, including foreign exchange market, currency market) is the global market, the currency (or currency-denominated receivables, namely so-called foreign currency) traded. The global exchange market is not connected to any fixed Stock Exchange bound, but will be supported by the global network of inter-bank relations constituted. . It is the largest financial market in the world (daily turnover in 2007, approximately 4 trillion U.S. dollars [1]).

. A forex, transaction involves the simultaneous buying and selling of different currencies on the interbank market. This form exchange ratios so that the value of each currency in each other can be expressed. . On theforex market as the nominal exchange rate as price ratio between the two currencies.

* 1 Price education in the macroeconomic theory (fundamental)
* 2 players
* 3 Trade
* 4 Traded Currencies pair
*

rates by macro-economic theory

to handle the demand of investment in forex, many new forex, brokers are online to supply the demand for foreign exchange investments. They are independent of the real exchange rate (only depends on the real interest on the credit market). . The demand comes from net exports agreement, so the demand for foreign exchange offer. . From the market balance is net exports = online forex investment. Currency market and credit market depends on foreign investment.

[] Players

The main group of players on the foreign exchange market investors, large banks, with their activities only return objectives. In addition, foreign traders on the market - either to hedge their operations or received or currency values needed to exchange. , The third group of important actors on the foreign exchange market, the central banks, in particular by currency market intervention in the market.
Forex Trade

The forex, holdings are both spot and forward markets.. Currencies are always traded in pairs. . It is not possible to the U.S. dollar to buy: We always exchanged euro against dollars, the dollar against the yen and so on. That is why currency rates also indicated always in pairs, for example, EURUSD 1.5933 ": For one euro, 1.5933 U.S. dollars to pay. . This example also shows that the quota for many currency pairs to the fourth place after the comma. In trade between banks and major companies are now the rates of 5 or 6 decimal places quoted.. Background is the introduction of the euro and the increasing competitive pressure from trading partners.The introduction of the euro, compared to the German mark the margin was halved and probably initially led to the impression that a dealer hardly stand out from the other was positive, but about ten years later is no longer the case.

. Theforex trade is not centrally on a stock exchange but usually directly between financial institutions have the dealer networks. , Broker and private Speculator . Increasingly among the participants are also companies, brokers and private speculators. . Trading is around the world and usually only on weekdays (the dollar is in U.S. holidays not traded and the euro on 1 May) around the clock (Sun 23h - Fri 23h EDT), so that the investors at any time relevant Events can react. [2]. Meanwhile it is thanks to online retailers more and more, that also during the weekend currencies can be traded.For example, Saddam Hussein for a weekend captured and market participants were in a position to the resulting short-term boost to U.S. dollars.

. Much is the decentralized and largely unregulated nature of the lawforex, transactions. Thus, two banks, amounting to a certain price for a currency pair agree a valid course away from central structures. In FOREX banks act as market speculators usually margin operations - usually in the order of magnitude 0.5 to 2 percent of commercial value. For example, in theforex market, one million U.S. dollars to move with 1% margin only 10,000 U.S. dollars This creates the famous leverage effect so that despite the relatively small fluctuations in the exchange rates in extreme short-term gains or losses.

Traded Currencies

. The most frequently traded currencies of the largest economic areas (U.S. dollar, euro, yen) and currencies from countries with strong financial centers (for example, British pounds and Swiss francs).

The following table shows an overview of the major exchange rates:
USDCHF USDCHF U.S. dollar to Swiss franc
USDJPY USDJPY U.S. dollar Japanese yen
GBPUSD GBPUSD British pound to U.S. dollar
EURUSD EURUSD Euro to U.S. dollar
EURCHF EURCHF Euro Swiss francs
EURJPY EUR JPY Euro Japanese Yen
EURGBP EURGBP Euro British Pound

The highest forex trading volume, while the couple EURUSD (about 28% of all trades), followed by USDJPY (approx. 17%) and GBPUSD (approx. 14%) [3].
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