12 Dec 08 Forex Basic for newbie (Part 2) - Objects involved Forex

Now go on my lession………………………..

Objects involved Forex

During 10 years ago, only the "giant ga" to join a new market was. Conditions for the minimum if you want to transactions during that period that you must have from 10 to 50 million USD to start. FOREX was born at the beginning aims to meet the needs of banks and companies in the industry giant, is not the "chang tí hon". However, with the support of kì di?u Internet, the system transactions online, the company’s transactions have been formed to allow open accounts "odd" to us. Today, the brokers in the market are allowed to break the unit transactions large and allow the transaction Small opportunity to buy and sell any number of any of these values less than this (lots).

Commercial banks have 2 roles in Forex Market

1. Make transactions between the two sides became easier, for example, the companies want to exchange currency (consumers).
2. By the beginning of the buy and sell currency. Bank has role in the currency because certain people believe in the future they will have a higher price (if you buy storage) and lower (if sold soon). People statistics that 70% of the annual income of the international bank was born at the beginning of the currency. The top of the other includes the transaction was successful in the world for example, George Soros.

3 types of Forex include central banks of other countries like bank reserves federal America. Forex their participation to ensure that financial benefits of their country. When central banks buy and sell currency or foreign currency, the purpose is to maintain value for money of their countries.

Forex is very broad and there are many people involved, not a person, only banking center of the new government can control the market. Compare with the level of transactions daily average of 300 billion capital market bond and the government about 100 billion to do transactions on the stock market, the U.S. Forex is very large because the pass rate was 1.9 thousand billion capital per day ( 2006).

Means to participate in market

The word "market" is the name gently mistake in describing Forex transactions. No position money_coin.jpgtrung center for active transactions, as it has in the currency market in the future. Transactions are carried out by telephone and through computers at hundreds of locations around the world. Most transactions were carried out between about 300 international banks where large property transactions for large companies, governments and for their account. The bank continues to provide prices ( "bid" to buy and "ask" for sale) with each other and with the broader market. Only the most recent numbers from 1 in the bank was seen as the current price in the market of that money. The services report separate data provide different information about price "directly" through the internet.

All you need when the transaction is a computer, Internet connection, and the information market.

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……….Go on next week, thanks for read,