Trading Future Trading Future Online Future Trading Online
There is always a bank open somewhere in the world. Each lot is worth about $100,000 and is accessible to the individual investor through 'leverage' - loans extended for trading. International banks are continuously providing bid and ask offers and the high number of transactions each day means there is always a buyer or a seller for any currency. The FOREX is made up of about 5000 different trading institutions such as international banks, central government banks (such as the US Federal Reserve), and commercial companies and brokers for all types of foreign currency exchange. The market opens Monday morning Australian time and closes Friday afternoon New York time. That's right, it buys and sells money! Currencies became valued at 'floating' rates determined by supply and demand. · Liquidity - Because of the size of the Foreign Exchange Market, investments are extremely liquid. The Foreign Exchange Market - better known as FOREX - is a world wide market for buying and selling currencies. Every transaction involves selling one currency and buying another, so if an investor believes the euro will gain against the dollar, he will sell dollars and buy euros. FOREX is traded everywhere - major trading centers are located in New York, Tokyo, London, Hong Kong, Singapore, Paris, and Frankfurt, and all trading is by telephone or over the Internet. The FOREX grew steadily throughout the 1970's, but with the technological advances of the 80's FOREX grew from trading levels of $70 billion a day to the current level of $1. In comparison, the United States Treasury Bond market averages $300 billion a day and American stock markets exchange about $100 billion a day. At the same time, it can be a relatively safe market for the individual investor. There are safeguards built in to protect both the broker and the investor and a number of software tools exist to minimize loss. Even though there are many huge players in FOREX, it is accessible to small investor's as well. Currency's rarely "crash" and thus risk is very limited. People can make educated guesses -
