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What is FOREX

FOREX (formed from FOReign EXchange market) is an international foreign currency market, where everyone is able to buy or sell money. FOREX was established in the 1970s, right after floating rates of exchange were embedded. Besides, only members of the market set up the value of one currency against the other in accordance with demand and supply.
FOREX is the largest liquid financial market in the world. Each day money masses in the currency market amount from 1 to 1.5 trillion US dollars.

What is FOREX


All transactions are executed via communications network 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday.

Principles of trade

FOREX is a ponderable market. If one of its members would like to swap prices, for some ambitions, then it would have to manipulate with billions of dollars. For this reason any actions of one member of the financial market is out of any questions. As the currency have a superior liquidity, so the trader can open or close positions in a few seconds. Each member of FOREX can choose its own trading strategy and keep the position for a random period: from a few seconds to many years. Every day the value of currency is fluctuating, but its spreads is unessential. That is why there are credit lines, which are approachable even for a member with a small capital.

Principles of trade

Marginal trading

At the heart of marginal trading underlies the study, that speculative concerns in FOREX can be met without stock of money. This reduction overhead gives a possibility for opening positions even if a member has a small capital and it can buys or sells various currencies. So, it can get big profit, when the rates of exchange go up or down. Practically all transactions in the FOREX are made on the theory of marginal trading. Margin trading is operations with borrowed stocks. Marginal trading uses lots for exchanging. 1 lot is equal to $100,000, but it is necessary to have only 0.5 - 4% of the amount for opening lot.

Marginal trading

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