An Introduction To Forex
The Forex or the Foreign Exchange Market involves a worldwide buying and selling of currencies. In this market huge amounts of transactions are conducted daily with daily exchange volumes of $1.5 trillion and more. When compared to just the United States Treasury Bond market which does about $300 billion daily and the American stock market exchange which does $100 billion a day you can see that $1.5 trillion is a lot.
Established in 1971 the Forex came about just after the abolishment of fixed currency exchanges. Instead of fixed values currencies were valued at a rate that is determined by demand and supply of that currency, otherwise known as a floating value. The exchange saw continued growth over the years but it was not until some major technological growth in the eighties did the levels of trading go from billions to trillions.
There are now over 5000 trading partners in the Forex which includes government owned financial institutions, international banks, private brokers and other commercial companies. Trading centers are located all over the world including some well known major ones in the heart of New York, London, Paris, Tokyo, Singapore and Frankfurt. Trading even occurs over the phone and the internet.
The great thing about to buy iraqi dinar is that the majority of traders are huge investors and the small time investor can also easily get in due to some new regulations. The main changes were the transaction size and the financial requirements that have been somewhat relaxed. An investor can now get into the market with an investment as small as three hundred dollars. This is a sharp contrast to other investment markets where thousands of dollars are required before entry is considered. The opportunities to profit are also much different from other markets so that even when the market is down investors can still do well. With that in mind it is easy to see why Forex trading is superior to other investment markets.