By : Anahit Stepanyan
Foreign exchange market (Forex market) is nowadays considered the largest financial market over the world. It started its development in the 1970s, about thirty years after the formation of foreign exchange. Nowadays it is the largest and most efficient financial market in the world
Foreign exchange market opens wider opportunities for its traders. It does not represent a single exchange as it is based on a global network of computers due to which traders from various parts of the world establish connection with each other. Due to the online web trading the amount of participants grows day by day, and this provides the high liquidity of the market.
Forex market forms integrity with banks, hedge funds, commercial companies and investment management firms, as well as with investors and retail Forex brokers. Its daily financial circulation reaches 4 trillion dollars enabling traders to make a huge profit even if they can’t afford themselves to start a trade with much money.
Forex market works round the clock five days a week. This gives chance to traders to realize their trade anytime and anywhere. Therefore, the basic features of Forex market are:
- Connection between participants from distinct parts of the world
- Great number of participants due to which high liquidity is provided
- Operating round the clock
- Availability to trade from anywhere that suits them
Together with the above mentioned features, traders should bear in mind that the success of trade lies in developing good strategies and following current market rates. One of the essential problems in the market is its instability. Forex market is never stable, and such changes are normal for all those traders who are not beginners. They are aware of market fluctuations and changes resulting from different political, economic and business events.
Therefore, the most important thing for traders is not connected with working hours or the amount of participants. It’s the way of trading, the strategies that should be learnt for making an investment. Here, each client should bear in mind that exchange market rates tend to be changed constantly even in a few seconds. They should follow market fluctuations and changes which can depend on various kinds of reasons, be it political, economic or business sphere. To overcome all these problems the trader just should realize what can affect the rates and how this or that event may influence the given currency rates.
Thus, it becomes obvious that Forex trading encompasses a number of factors that should be taken into consideration, and without profound knowledge of Forex market there can hardly be a successful trade.
This article was written by Anahit Stepanyan. As an experienced content writer in Finance, she appreciates the unique style and original way of writing. Each of her articles are expressed in such a way that you can listen to “the voice of author”.