History of FOREX

The foreign exchange market that we see today started in 1973 due to cancellation of Bretton Woods system of fixed exchange rates. As a result of switching to floating exchange rates, a large inflow of the so-called “players” into the foreign exchange market occurred. Having made the trading a very lucrative activity, it is these players who contributed to increase in currency fluctuations.

What is FOREX?

Firstly, it is enormous financial instrument allowing profit-making even in small currency fluctuations on the foreign exchange market. The scope of FOREX itself is very huge. Every day volume of the trading is more than $5 billion dollars. Any commodity market, futures market and stock exchange have no equal FOREX.

Secondly, it is the most powerful world system which does not have single centre. Trading operations do not stop any minute from Monday through Friday. There are daily exchange purchases of different currencies, such as British pound (GBP), euro (EUR), US dollar (USD), yen (JPY), franc (CHF), Canadian dollar (CAD), Australian dollar (AUD), etc. Different banks, market-makers, brokerages, independent brokers (such as EXNESS), investors, traders buy and sell currencies on FOREX.

The purpose of the trading on FOREX as well as other market is to buy goods cheap and sell goods at or better. Goods on the foreign exchange markets are exchange rates of different countries and each currency carries a price. Banks carry out FX transactions for settlements between counterparts from different countries for interstate payments, speculative operations, etc. Depending on different trading, economic and other indicators, interest rates, bank operations, time of day, preferences and expectations of traders, quotes are in ceaseless movement.

The goal of a trader is to determine currency direction and buy the currency which rises and sell the currency which falls in price and then make profits executing reverse transaction.

FOREX was unavailable for ordinary people formerly as in order to get access to it people needed to have large sums (about $1 million). However, owing to the development of Internet and brokers, at present almost every person can become trader.

EXNESS brokerage grants access to execution of the trading on FOREX to every trader in the world regardless of his/her professional level and volume of deposit.

Customers’ transactions are executed through Meta Trader 4 trading software. It is very easy to work with this trading platform. Using Meta Trader 4 every trader can receive quotes in real-time mode from market participants, such as banks and the largest stock exchanges. There are different graphics of current changes in prices of every currency. Traders just need to enter “Personal area” and buy or sell the chosen currency using their trading account.

For beginners in FOREX there is the section of education made up by specialists of EXNESS. Using this section you can learn ABC of the foreign exchange market. You can also download necessary software from our website.