Like any other market, Forex trades certain goods, namely national currencies of different countries.
The key principle of currency dynamics is the need of government agencies as well as commercial companies around the world to convert profits generated abroad into their national currencies. However, their share accounts for just 5% of the Forex turnover. The remaining 95% comes from speculative capital of currency traders who are focused on gaining profits from currencies fluctuations.
t is a well-known fact that any financial market runs a serious risk of a possible meltdown. However, unlike other markets (stock and commodity), Forex is safeguarded from a crash thanks to the specifics of its commodity, namely a currency which is the most liquid and reliable trading instrument among all available ones.
The bulk of speculative trades (85%) are carried out involving the most popular currencies termed “majors” such as the US dollar (USD), the Japanese yen (JPY), the euro (EUR), the British pound (GBP), the Swiss franc (CHF), the Canadian dollar (CAD), and the Australian dollar (AUD).
|Example: If the US dollar plummets in value, the other currency in the pair is strengthened thus reviving the market activity. Making good use of the situation, a trader can generate an extra profit.|
Thanks to the Internet, traders can make deals with customers from other countries. So, non-stop dynamics of exchange rates, traders’ intellectual abilities, and state-of-the-art software make it possible to set up a lucrative business in no time. Nowadays, services of ECN brokers are gaining in popularity as they enable clients to trade with each other by offering their best bid and ask prices.
|Security. Trading on Forex via the Internet, every client has their money protected by InstaForex advanced security system.|
A trader needs to deposit just 1 US dollar to an account to start trading on Forex.
InstaForex offers its clients decent trading conditions. All you need is open a trading account and start making money.