Forex and its characteristics
Forex is the world's largest foreign exchange market. It is used for the exchange of currency by corporations, governments and central banks, twenty-four hours a day, from 8:00 on Monday GMT+10 to 17:00 on Friday GMT-5. Forex is the fastest and completely automated way to perform operations on currencies. It works without human intervention, and the typical time for pairing bids and offers is just 50 milliseconds.
Private entrepreneurs, using the webinars available on Webinar Universe, use the market to invest on the basis of currency leverage, but this is somewhat of a secondary function of this market. The daily turnover of currencies on forex is 5-6 trillion US dollars, which makes forex the largest existing market in history.
History of the forex market
The history of forex is strongly linked to the history of currency as such. Formerly, the value of money was based on gold, which meant that the amount of cash circulating in the market was dependent on the government's gold reserves. This changed after the Great Depression, when this type of solution turned out to be insufficient. It was then that the conditions were established that became the foundations of the modern monetary system, while at the same time making the currency independent of gold. In 1971, the U.S. president suspended the exchange of the U.S. dollar for gold, and since then the value of the currency has been regulated by the law of supply and demand. Forex is a natural consequence of this type of activity, a place where the government and central banks could exchange currencies. Closed to private investors, it allowed for the control and monitoring of the flow of money. With advances in technology, it was also increasingly automated, and eventually became available to private users.
Investors in the market
Forex is first and foremost a tool for controlling and flowing money, and most of its users are central banks operating with huge sums of money, huge enterprises, governments of individual countries. The purpose of state bodies is to exchange and stabilize individual currencies. However, the forex market is available at the moment to a private trader who will use the services of an intermediary broker. In this sense, anyone can play forex, and the entry threshold is very low, as amounts of several dozen dollars are enough to operate the currency on forex with financial leverage.
Playing forex is considered to be quite difficult, but it still attracts crowds of interested people, and you can find hundreds of guides on how to invest in forex online or stationary. Many people associate forex with the opportunity to gain considerable wealth.
Day trading ... What is it?
Day trading is a basic, although not the only, strategy for investing in forex. It involves opening and closing positions on the same day in order to earn income from changing the exchange rate within a few hours. There is no consensus on whether day trading in forex is a good strategy. This method has many supporters and just as many opponents, and the basic rule of thumb when dealing with day trading is to use the services of a broker that charges a low enough commission to make such a short-term strategy profitable.
Why forex and currencies?
Certainly, forex is a good position for someone who is not afraid of the risks associated with investing in the currency markets, and is also confident in their skills as an investor. Forex can be a great investment method, but only for people who know the currency market well, know how it works and have a good investment strategy. Such knowledge can be gained on the training platform. In this case, you can get very spectacular profits. However, it should be remembered that forex has a habit of heavily punishing those investors who do not understand the principles of its operation and count on quick, reliable cash without risk. So, who is forex for? First of all, for those who either already have a lot of experience in investing, or are willing to take it before they sit down to day trading or any other forex trading strategy.