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MBS Forex |
About Forex
The word Forex is an abbreviation for the “Foreign Exchange Market.” Our translation would be “Foreign Exchange Market.” Forex stands for world of financial markets, which trade 2-3 billion USD a day. For example, the daily turnover on the New York Stock Exchange is around 25 million USD. In fact, the daily amount of trade on Forex more than three times the volume of trade on all exchanges on the planet put together! The Forex market trades wit funds. Forex is a market where one currency is traded for another. Some of the specifics of this market is that it does not recognize administrative boundaries, and that it is open 24 hours a day except on weekends. The market by our time zone opens at 11pm on Sunday, and closes on Friday at 11pm. Forex market is a global network of buyers and sellers of foreign currencies. World currencies are in a changing exchange rate, and they are always traded in pairs Euro / Dollar, Dollar / Yen, etc. About 85% of the daily turnover refers to the major trading currencies. Forex market is so huge and because of its size, very liquid. There’s always a customer on one side and a seller of currency on the other side and so you will never wait to sell or to buy some of the currencys. If you want to sell or buy a currency, you can do the same torque. In the past, Forex trading was only available to large banks and authorized financial institutions. Minimum payments amounted to about 50 million U.S. dollars. Today, thanks to the improvements in technology and the Internet Forex can be used by everyone, including small e-trader or small company, has the ability to trade on the same exchange rates and differences in price as the big players who once dominated this market. Unlike other exchanges, New York, Frankfurt, etc., Forex is not centralized. Forex is “Over the counter” or “interbank” market, due to the fact that it takes place electronically through the banking network.
Forex market is unique because:
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