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Yahoo! News: Business News

»Dow closes below 10,000 for first time in 3 months
(AP)

AP - The Dow Jones industrial average closed below 10,000 for the first time in three months Monday ...
»AstraZeneca gets OK for expanded Crestor use
(AP)

AP - Federal regulators have granted AstraZeneca approval to market its cholesterol pill Crestor as ...
»Still no word from Toyota on Prius recall
(AP)

AP - Toyota is close to recalling as many as 300,000 of its popular Prius hybrids over brake problem ...
»Obama's health care summit: Just for show?
(AP)

AP - Could this turn into something more than political theater? President Barack Obama's televised ...


Date published: Tue, 09 Feb 2010 01:26:34 GMT



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What is forex?

Forex is an international currency market, a special kind of the world
financial market. Traderĺs purpose on the Forex to get profit as the result
of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influenceof any important for the human society event in the sphere of economy, politics and nature. Consequently current prices of foreign currencies, evaluated for instance in US dollars, fluctuate towards its higher and lower meanings. Using these fluctuations in accordance with a known principle.



Using these fluctuations in accordance with a known principle "buy cheaper - sell higher" traders obtain gains. Forex is different in compare to all other sectors of the world financial system thanks to his heightened sensibility to a large and continuously changing number of factors,
accessibility to all individual and corporative traders, exclusively high trade turnover which creates an ensured liquidity of traded currencies and the round ľ the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open. Just as on any other market the trading on Forex, along with an exclusively high potential profitability, is essentially risk - bearing one. It is possible to gain a success on it only after a certain training including a familiarization with the structure and kinds of Forex, the principles of currencies price formation, the factors affecting prices alterations and trading risks levels, sources of the information necessary to account all those factors, techniques of the analysis and prediction of the market movements as well as with the trading tools and rules.

Top 10 currency traders
% of overall volume, May 2008
Rank
Name
Volume
1.
Deutsche Bank
21,70%
2.
UBS AG
15,80%
3.
Barclays Capital
9,12%
4.
Citi
7,49%
5.
Royal Bank of Scotland
7,30%
6.
JPMorgan
4,19%
7.
HSBC
4,10%
8.
Lehman Brothers
3,58%
9.
Goldman Sachs
3,47%
10.
Morgan Stanley
2,86%