FOREX

The meaning of the FOREX, is Electronic Market of Currencies. This it signifies that it can be bought (long) or to sell (short) a currency to their present price and also contracts of purchase/sale with future on currencies can be carried out. The market FOREX is the largest financial market of the world. Daily, thousands of millions of euro are bureaus in different currencies everywhere. Being the FOREX the base for the international transactions of capitals, their liquidity and volume are a great deal greater that any another financial market.

It is estimated that the volume average operated by the largest Stock Exchange of the world that is the Market of New York, in a complete month, is equal al volume that is negotiated daily in the market Forex. Besides it is estimated that this volume is increased a 30% annually. The movements inside the market can be so important that the governments set economic politics to control the fluctuation of their currencies in the world market. Doing it, they expect to be assured that its currencies itself be not appreciated or they depreciate too much against other currencies, affecting not alone the balance of importings and exports, but the global economy of its countries, in reality, these politics do not serve for a great deal (except to enrich to the speculators, style Soros or Buffet) since the volume that moves so is raised that no government can fight, long-term, against theTendency of bottom of the market.

As opposed to other financial markets, the FOREX does not have a center of contracting sinó that is operated directly through Banks, Dealers and Market Makers (creative of market). Until it does little time, the Electronic Market of Currencies exclusively was operated for large Banks and Financial Institutions. For an individual investor was very difficult to enter to this Market on account of the great capital that was required to operate in it. Today, thanks to dealers "online", an investor can invest tranquilly since the screen of his computer in the currency market in real time. Proper al high apalancamiento of the market, large quantities of money with a relatively small investment can be handled (example: can be carried out operations of a million euro with only 50.000 euro). The liquidity of the market Forex is one of the advantages that differentiates it of other international markets. The existence of the Dealers, that work everywhere, permits us to operate in a market the 24 hours of the day.

The great majority of operations that are carried out in the market are of speculative character. The users try to be anticipated to the movements of the currency market with the objective to obtain a profit in each operation. It is estimated that the 95% of all the transactions of the market Forex are carried out with speculative end. Another reason to enter to this market is simply the need of cash in a foreign currency for make a payment. For example if an investor of Madrid wants, directly, to buy actions in the Market of New York, needs to pay them with euro, then first he should change his euro by Dollars to then pay the actions. Now, this investor has carried out two different types from investment, an is the currency and the other is the Market. Each one it represents an investment and can gain in both.

Although hundreds of currencies exist everywhere, the majority of the negotiations concentrate on four main currencies, the Yen, the Euro, the Pound Sterling and the Frank one Swiss. A great deal of people is interested in operating in the market Forex by its international present time, since the movements of the currencies represent the changes of the economies of each country with relation to other. Also the volatilidad of the market does that to invest in it be very interesting, because the market can be moved strongly on account of the operations apalancadas, and is possible to obtain significant profits in a single day. One must notify that the same as large profits can be obtained, is also possible to suffer large losses in very little time.