Hello anxious Finance. Learn today why it is considered that Forex is the most efficient of all markets and who are the main players in the market.
Forex is the world's largest financial market and that, on average , a day has a trading volume of almost 2 trillion. To give us an idea, 15 times more operations in the U.S. equities market and 5 times more than Treasuries U.S. .
The most efficient market of all
Thus , being the eldest, is considered to be almost impossible to manipulate . I mean, if someone buys or sells a huge amount of a currency, the value of the currency would not be very concerned because, at that moment , the sum of other transactions may have moved in the opposite way ; any effect of slowing induir want a certain value . And, the Forex world works the most traditional way to supply and demand. Therefore, if a particular currency is a trend, it will not be affected by a single agent. Thus, by knowing which way to follow the evolution of the value of the currency , is possible to make money through the exchange rate.
Who operates in the market
It is very important to understand who the main actors in the process of Forex , regardless of whether they buy or sell the currency.
In the first case are those who perform the operations. The most common cases are:
- Payments to other companies for the purchase or sale of goods or services .
- Transactions of money to family
- Payments for products online
- Credits from banks
- Ordinary people who know the Forex world , sees the trend and decide to make money in your favor .
In the second case , are all institutions that allow foreign exchange :
- Banks , regardless if it is a small sum and through brokers if significant
- Central Banks
- International Banks
And , is that those who decide to invest in the Forex market , you must first know the basics to interpret that follows this movement. The more you know , the better analyze the situation and , therefore , the better the decisions you take . Because, after all , no one would put the Forex market to seduce a woman , in this case , without knowing at least how to make conversation.