History of FOREX
The foreign exchange market that we see today started in 1973 due to the cancellation of the Bretton Woods system of fixed exchange rates. As a result of switching to floating exchange rates, a large inflow of players into the foreign exchange market occurred. These players made trading a very lucrative activity and contributed to an increase in currency fluctuations.
What is FOREX?
Firstly, it is an enormous financial instrument allowing traders to make a profit on even small currency fluctuations on the foreign exchange market. The scope of FOREX itself is huge, with a daily trading volume in excess of $5 trillion. No commodity market, futures market or stock exchange can equal FOREX.
Secondly, FOREX is the most powerful world system that does not have single center. Trading operations are carried out nonstop Monday through Friday. There are daily exchange purchases of different currencies, such as the British pound (GBP), euro (EUR), US dollar (USD), yen (JPY), franc (CHF), Canadian dollar (CAD), Australian dollar (AUD), and many more. Different banks, market makers, brokerages, independent brokers (such as EXNESS), investors and traders buy and sell currencies on FOREX.
The purpose of the trading on FOREX, just like any other market, is to buy goods cheap and sell them at the same or better price. On foreign exchange markets, the goods are the exchange rates of various countries, and each currency has a price. Banks carry out FX transactions for settlements between counterparts from different countries for interstate payments, speculative operations, etc. Quotes are in perpetual motion and react to many trading, economic and other indicators, interest rates, bank operations, the time of day and the preferences and expectations of traders.
The trader’s goal is to determine currency direction and buy the currency that is rising and sell the currency that is falling in price in order to make a profit by then executing a reverse transaction.
At one time FOREX was unavailable to ordinary people, since in order to access it people needed to have large sums on hand (about $1 million). However, owing to the development of the Internet and brokers, today almost anyone can become a trader.
EXNESS opens access to FOREX trading to every trader in the world, regardless of his/her professional level and deposit volume.
Client transactions are executed over the easy-to-use Meta Trader 4 trading platform. With Meta Trader 4, every trader can receive quotes in real-time mode from market participants, such as banks and the largest stock exchanges. The terminal presents graphics on current changes in prices for every currency. Traders simply enter the Personal Area to buy or sell the chosen currency using their trading account.