What the Forex is
Doubt worries people – there’s no hesitation about it. So let us try to describe this strange word, “Forex” as soon as possible in order to take the first step on our journey as traders in this huge market. The word Forex (sometimes shortened to FX) is came from two English words: foreign and exchange. This exclusive market is a huge gathering of different currency deals, grouped by some modern tools into a united informational space. This space in its turn plays a pivotal role in producing the appearance of the final results which are the exchange rates themselves.
These are the ones you can see every day on the TV, in the streets near currency exchange offices and banks or on the radio. Honestly speaking, Forex is not a physical exchange, operated by a single being (such as the New York Stock Exchange), it is somewhat a virtual exchange and its members are all those who obtaining or sell any currency. When was the last time you exchanged Euros for US dollars? Perhaps when you were visiting the USA. You should know that while exchanging your currency, at that moment you were a Forex market member, even if you had no idea about it. Well, we don’t want to deceive you – you are not the most important market member, at least not for now.
The most important operators are banks great companies, insurance companies and …. The maximum influence on Forex markets are from banks and enormous corporations. These operators are called market-makers as their activities affect foreign exchange rates on international scale.
In other words, if an English - man called John Walker, for instance, goes and changes his 500 EUR into USD it will have a much smaller influence on the market than, for instance, a decision by Microsoft to invest 100 billion dollars into Indian off-shore companies. It doesn’t mean that there is no use for John to join the market. Let the giants play the tune but the one who could make a profit might be John – if he had the right trading skills. We will also try to show you how you can learn the skills to profit from the Forex market too.