The Currency Market

The currency market is the market of currency bargaining. The currency market is quite huge, and the day volume in the currency market reaches several billions of US dollars.

Today the main currencies in the Forex currency market are: US dollar (USD), Euro (EUR), Japanese yen (JPY), Swiss franc (CHF) and English pound sterling (GBP).

70% of operations in the Forex currency market are made with US dollar. It can be explained by the fact that the great interest to this currency is shown all over the world. Also US dollar schedule develops very dynamically and that gives good results of its analysis.

The currency market consists of many people, companies, and banks which make the exchange of one currency for another. Each exchange changes the course: raises or lowers it.

The Forex currency market is a copy of the share market with small difference. In the currency market the currencies and not the shares are bargained. The trade process in the currency market differs from the trade process on the equity market.

The access to the currency market for us, the simple citizens, is represented by the intermediary companies (the dealing centers). Each company has its own trade conditions at the Forex currency market. Also it is possible to get to the currency market through the bank, but the deposit sum much more exceeds the sum which is required for account opening in the intermediary company. But this is obvious, because banks are more reliable than the intermediary companies. They insure the deposits, give set of conveniences, it is pleasant to work with them both in the currency market, and on the equity market.

The currency market gives the big possibilities for earning money. Where else can you earn it, if not at the place where there is plenty of it, and such place it just the currency market.

The basic participants of the currency market are the central banks. The day volume of operations of the largest international banks in the Forex currency market (Deutsche Bank, Barclays Bank, Union Bank of Switzerland, CityBank, Chase Manhattan Bank, Standard Chartered Bank) reaches billions dollars. As a rule, the central banks of the countries go on Forex currency market, not for the purpose of getting profit, but for the purpose of stability check or correction of an existing rate of national currency as last makes the considerable impact on state of the economy of the country. The central banks also go on the currency market through commercial banks. Though the profit is not the main purpose of these banks, the unprofitable operations do not attract them also, therefore the central banks’ interventions are usually masked and carried out through several commercial banks at a time.

Besides the banks, the broker houses are also the active participants of the currency market. There they carry out the role of the intermediary between a considerable quantity of banks, funds, commission houses, dealing centers, etc. Commercial banks and broker houses not only make operations on currency purchase and sale under the prices which are exposed by other active participants of the currency market, but also offer their own prices. Thus, they actively influence on the process of price formation and the life of all market.

The currency market is opened for everyone. To get on it in this country you will need just few thousand Roubles (you will need more money to get on the equity market), to sign the contract with the intermediary company and to trade. Certainly, you will have to learn to trade in the currency market first.