Fundamentals of forex

BASICS OF FOREX:

What is Forex?

“Forex” is basically an abbreviation for “Foreign exchange” that is used as a name for international interbank currency market. The new Jamaican currency system which replaced Bretton Woods system, the values of many national currencies were no longer dependent on the gold reserves of that particular country. The laws of supply and demand so typical for market economy started to influence the price thus inevitably leading to a new trend called “floating rate policy”.

Global Forex participants

Forex is a currency exchange market all over the world. It does not have center or branches; it is placed wherever the participants of exchange transactions are. Central state banks, commercial banks, investment foundations, enterprises, private investors, traders and ordinary people are the participants of the Forex market. Exchanging one currency for another, they automatically become direct participants of the Forex currency market.

Forex market volume

Forex has a huge volume in the total transactions in comparison to any other exchange body including the NYSE. A daily summary money turnover in financial year 2010-2011 equals 4 billion dollars. And the number is increasing day by day.

Forex broker

A person requires a Forex broker so that all the possibilities of the currency market would become available. A bank or dealing center (providing possibilities of currency dealing) may act as a broker. As a rule, the conditions are more suitable in a dealing center and registration process is easier, that is the reason why most of the newbies choose exactly DC.

What is a broker

Broker is an intermediary between a trader who wants to earn on currency rate difference and other market participants. After signing in on the web site, a person is offered to download a trading terminal for a regular or mobile trading and to start working. If a person is trading for the first time, he has to study Forex articles and, may be, open a demo account where he can easily test his skills and make sure the currency trading may bring a considerable financial outcome.

Choosing a Forex broker in India

Choosing aForex broker in India, many people in India ask the same question, which one is the best? Hundreds of forum pages are used up, many articles are issued, various rating systems are created and a lot more, but nobody can actually tell who is the best broker because in the end it depends on and individual and his preferences and tastes. So one and the same broker cannot be suitable for everyone and be convenient for all the traders. Although especially for Forex traders in India, LiteForex India has very friendly services and quick transactions for withdrawals and deposits as well as Customer support in Indian languages like Hindi, Gujarati, Marathi and English and soon we will start with Tamil and Malayalam.