Exchange market

An exchange market is a market, where the currency is traded. Exchange market is huge, daily sales on the exchange market may reach some trillions US dollars.

Main currencies on the exchange market forex today are: US dollar (USD), euro (EUR), Japanese yen (JPY), Swiss franc (CHF) and English pound sterling (GBP).

On the forex exchange market operations with US dollar take 70%. It can be explained with the fact that there is a big interest in the entire world to this currency. Also, US dollar chart is being developed in a very dynamic way, what gives good results of its analysis.

An exchange market is a big amount of people, companies, banks, which provide the exchanges of one currency to another. Every exchange changes the rate: it makes it higher or lower.

Forex exchange market looks like stock market with some changes. On the exchange market currencies are traded not stocks. The process of trading on the exchange market differs from the one on the stock market.

The access to the exchange market for us, simple people, is given by intermediary companies (dealing centers). Each company has its own trading requirements on the Forex exchange market. Also you can get to the exchange market via bank, but the amount of deposit is much higher than the amount you will need to set up an account in the intermediary company. But it can be understood, banks are more reliable than intermediary companies: they insure the deposits, they give a lot of conveniences, it is pleasant to work with them both on the exchange market and on the stock market.

An exchange market gives big opportunities to earn money. Where would you earn it if not at the place where there is a lot of it? And this place is an exchange market.

Main participants of the exchange market are central banks; daily volume of operations of biggest international banks on the forex exchange market (Deutsche Bank, Barclays Bank, Union Bank of Switzerland, CityBank, Chase Manhattan Bank, Standard Chartered Bank) can reach billions of dollars. Central banks of the countries get to the forex exchange market not with the aim to make profit but with the aim to check the stability or to correct the existing rate of national currency, as the latter has big influence on the economics of the country. Central banks get to the exchange market via commercial banks. Though the profit is not the main aim of these banks loss-making operations also don’t attract them, that’s why the interventions of central banks are usually masked and made via some commercial banks at the moment.

Except banks also an active participants of the exchange market are brokerage houses, playing the role of mediators among a lot of banks, funds, commission houses, dealing centers, etc. Commercial banks and brokerage houses not only make the operations of buying-selling the currency according the prices which are given by other active participants of the exchange market but also offer their own prices. Thus they influence extensively on the process of pricing and the life of its market.

The exchange market is open for everyone. In our country you need only some thousands of rubles to get to it (you will need more money to get to the stock market), to sign the contract with the intermediary company and to trade. Of course first of all you should learn the trading on the exchange market.