Currency market – it is the totality of conversion operations, sales, accounts and providing loans to foreign currency on the specific conditions (amount, rate, period) to the performance of a specific date, carried out between the parties to the foreign exchange market.
Current conversion transactions to exchange one currency for another account for the bulk of foreign exchange. With regard to conversion operations in the English language adopted the term sustainable Foreign Exchange Operations, abbreviated FOREX or FX.
World interbank FOREX market has gained this kind of mid 70’s, after the cessation of v1971g. actions Bretton Woods system of exchange rates and the transition to “float”. Since then, the FOREX is becoming the most dynamic and liquid market. This is the only market in the world, working around the clock.
The rapid movement of funds, the low cost of transactions, high liquidity makes FOREX one of the most attractive markets for investors.
The essential difference FOREX market from other markets is that it does not have any particular place of trade. FOREX is a huge network of interconnected via telecommunications, foreign exchange dealers, distributed to all the world’s leading financial centers around the clock and work as a single mechanism.
Currency trading is carried out by telephone or via computer terminals – a transaction carried out simultaneously in hundreds of banks around the world. For information about the state of financial markets in real time, as well as financial and economic news from Russian and international agencies use of international information systems, such as REUTERS, DOW JONES, CQG, BLOOMBERG, TENFORE etc. For more information on the systems can be found here.
The major currencies, which accounted for the bulk of all transactions on the FOREX market is the U.S. dollar, Deutsche mark, Japanese yen, Swiss franc and the British Pound. Participants in the foreign exchange market Major participants in the foreign exchange market are:
Commercial Banks
Currency Exchange
Central Banks
Companies Engaged in Foreign Trade
Investment Funds
Brokerage Companies
Individuals