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forex mkt

forex mkt

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Published by Pradish Nair

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Published by: Pradish Nair on Jan 03, 2012
Copyright:Attribution Non-commercial


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Introduction of Forex Market:
The history of the FOREX Market as it exists today begins before 1971 whenthe FOREX market departed from The Bretton Woods Accord to reflect a radicalchange in Universal fixed exchange rates. After World War Two, the BrettonWoods Accord was introduced to the FOREX market to stabilize the devastatedworld economy.The FOREX Market, often considered to be the playground of governmental institutions operating under the agency of central banks,
expanded its horizons in recent years to include corporations, hedge funds,and speculators and most recently with the dot com boom and the expansionof the world wide web, now the private investors have been afforded thelucrative opportunity to be a part of the action.The appeal of The FOREX Market is one of non-stop, twenty four hour a day trading for the five business days of the week. The first tentative stepstowards a global economy have created a fast moving liquid marketfacilitating a wide variety of transaction options. Combine this with the abilityto make money in both winning and losing markets and you will see why TheForex Market is considered by some to be the fastest developing mostlucrative business opportunity open to the savvy investor who has the skill,intelligence, acumen and backing to create substantial profits.The Forex Market provides a number of ways for investors to get in on theglobal high stakes action. From the spot market to spread betting, options,contracts for difference and futures, these are just some of the ways FOREXcan turn a modest portfolio with moderate potential, into a heavy hittingenterprise totaling far in excess of what it once was. The BIS or Bank of International Settlements estimated in a recent survey that ove$1,200,000,000.00 is exchanged everyday on The FOREX Market. Currentlyindustry analysts think the market is not living up to its 1978 potential of $1,490,000,000.00 and still view this as an attainable goal for the FOREXMarket of the future.
Forex Trading: 
In short, it's buying and selling currencies - or money, if it sounds better. Imagine that you live in Great Britain. Your friends tells you he isgoing to the US next week for vacations and therefore he requires someAmerican money. Obviously, in the US no shop would accept British pounds.Luckily, you have some dollars left from your last business trip to NewYork, so you take your wallet, get twenty banknotes of 100 USD and sell themto your friend. Obviously, he pays you back with British pounds - because youlive in London, you are not interested in any other currency.Well, you have just made a forex operation! Now, imagine that insteadof taking British pounds from your friend, you ask him to give you back thesame amount he received - 2000 USD, to be accurate. At this moment, theexchange rate was 1.4282, let's assume. He spends two joyful weeks in theUS, traveling around the states, tasting some delicious stakes with Californianwine and even singing local anthem. Then your friend comes back to Londonand he has to give you back 2000 USD. Luckily, the exchange rate of USdollar versus British pound has increased dramatically due to some latest newsfrom the US - it's 1.4021 now, meaning US dollar is now more expensive inthe UK! So, once you receive 2000 USD back, you go to a currency exchangewindow at your favorite bank and change dollars back to pounds. And then -surprize, you made a profit because of the currency rate fluctuations!Now, you actually did some primitive form of forex trading!

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