Tuesday, August 25, 2009

Intro to fundamental research : Forex.

It handles a big volume of transactions twenty-four hours per day, five days each week. The currency exchange market was established in 1971 with the abolishment of fixed currency exchanges.

Currencies became costed at 'floating' rates set by demand and supply. The Currency exchange grew steadily across the 1970's, but with the technical advances of the eighty's FOREX grew from trading levels of $70 bln a day to this level of $1. Each lot is worth about $100,000 and is accessible to the individual financier thru 'leverage' loans extended for trading. Global banks are steadily providing bid and ask offers and the big number of transactions every day means there's always a buyer or a seller for any currency. Most traders depend on technical research for plotting entry and exit points into the market and supplement their findings with fundamental research. Currency costs on the Currency exchange are influenced by the forces of demand and supply, which in turn are influenced by commercial conditions. Indicators are often released on a regular basis but some are released weekly. Rates - can have either a reinforcing or weakening effect on a selected currency.

Accessibility The market is open twenty-four hours a day, five days each week. Open Market Currency fluctuations are sometimes due to changes in countrywide economies. The aptitude for profit exists because there's always movement between currencies.

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