Stock of foreign exchange (FX) is often also called forex (Foreign Exchange) market. Exchange foreign currency is a currency trading market. Trafficking involves a country's currency to be exchanged with other countries currency. This means that there is a barter transaction by selling the currency owned and then buy the currency of your choice.
forex trading Online Forex Trading
Because currency values are always changing / fluctuating, then the perpetrators of the so called trading with the trader, can make a profit or loss depends on price movements.
Online Forex TradingUntil early 1990 , forex trading can only be followed by institutions and players with large capital. More forex trading purposes for the payment of economic transactions, such as exports or imports. Some market participants also sought to avoid the fluctuation of currency fluctuation by hedging (hedging).
With the advent of the Internet media, so bring a big change in forex transactions. Speculation Forex Online Trading (FOT) over the Internet is far more practical. Forex player must first deposit money into the broker. In addition, the forex investor can use the software or computer software that is connected with the broker, then the transaction can be done through software.
In general, the market is used to bring together two different sides of the seller and buyer. Thus, there are three main parties that participated in the buyer's market (buyer), seller (seller), and manager of the market (market maker).
Online trading forex trading structure is slightly different with the market in general. If on a centralized market there is only one market maker only, then the online forex trading there are plenty of market maker.
Brokers have a computer that is connected with the market maker. Computers on the network will be connected to the broker dealer (market maker), until finally arriving to the interbank market. Forex speculators or traders can use computers and PDAs are connected to the Internet to engage in buying or selling.