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Nowadays FOREX is to be considered the greatest adjustable financial market (it is regulated by amendments to the charter of the International currency fund, accepted at transition to system of floating rates in the early seventies last century, and also corresponding points of national laws: supervision is entrusted for carrying out to special structures). The currency market volume is estimated approximately in one third of a total volume of all financial operations in the world, and volume of the transactions made for days, makes from 1 to 3 bln. dollars.

Currencies are the most liquid goods: a supply and demand are actually limited only by total amount of the monetary weight which is in circulation. It, in a combination to that fact that banks are obliged to make free currency operations in a legislative order under the declared market quotations, is a guarantee of absolute liquidity of transactions for any investor. In practice it means the simple fact: one currency always can be exchanged for other currency or on other goods.

Uniform stream of the currency quotations delivered through such information systems as Reuters Dealing, Dow Jones Telerate, EBS (European Brokerage System), etc. provides simultaneous access to the same prices for participants from all countries and continents. Caused by change of time zones, a various operating mode of banks and financial activity in different corners of globe, FOREX has round-the-clock character.

For the overwhelming majority of corporate and private clients, work of the world currency market represents the continuous trading session beginning in the night from Sunday to Monday (New Zealand, Australia and other states of Pacific region) and coming to an end in the late evening of Friday (the western coast USA). For large interbank transactions between backbone banks (so-called markets-makers) the market remains accessible also on Saturday and Sunday. All it creates the special unique conditions allowing the prices to change instantly on a global scale (without waiting any certain operating hours of the market and with unlimited volumes of possible transactions).

In case of the important political or economic events, the given moment is an essential favorable condition of investment in currencies, allowing reacting operatively to any situation under current quotations at any time. Thus absolute liquidity of the market and bank regulations give the chance to any number of participants to make necessary operations during a short time interval, including under the warrants exposed in advance on the concrete prices. However, according to supervision, the basic activity of movements on FOREX is usually observed during the period between 10.00 and 20.00 Moscow time (when actively work simultaneously Asian and European, and then the European and American banks), and also between 3.00 and 6.00 o’clock Moscow time (the Asian banks are active).

Most widely are quoted about 30 currency pairs. The basic steams are euro/dollar (EUR/USD), pound/dollar (GBP/USD), dollar/yen (USD/JPY) and dollar / the Swiss franc (USD/CHF). The Great attention is given also to other steams with US dollar participation. On FOREX it is accepted to name Cross-countries-courses currency steams into which the American dollar does not enter: for example, euro/pound (EUR/GBP), pound/yen (GBP/JPY), pound / the Swiss franc (GBP/CHF) and so on.
Gold quotations in relation to US dollar are often included in the list of currency pairs: they are named contracts gold-spot (and designate as GOLD). It is quite justified, as gold inherently is a world equivalent of money, and thus any of modern currencies is not provided by legislatively gold maintenance.

The account on FOREX allows to conduct electronic exchange operations with participation of gold and thus to trace every second fluctuations of a stock quote on this precious metal. Interest to such transactions is especially great in the conditions of crisis when monetary units of all countries in different degree depreciate because of what demand for gold grows.

The selection of a foreign currency trading service is not an easy task. And one shouldn’t hurry up to make a decision on such a service.

It is very important that you follow some general tips – today the online technologies give you a truly unique chance to choose exactly what you want at the best terms which are available on the market. Funny, but most of the people don’t use this opportunity. In real life it means that you should use all the tools of today to get any foreign currency trading info that you need.

Search Google or other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and join the online discussion. All this will help you to create a true vision of this market. Thus, giving you a real chance to make a wise and nicely balanced decision.

And also sign up to the RSS feed on this blog, because we will everything possible to keep updating this blog with new publications about the topic of learn foreign currency trading and important trends on the currency exchange market.

Tags: foreign currency, foreign currency trading, forex, Forex Trading, online forex trading