Forex market is an international money market. Forex keningau sabah forex trader its name from foreign currency exchange operation: FOReign EXchange, or FOREX, for short. Forex is one of the youngest financial markets and has had its present appearance since the 1970s.
Forex’s daily trading rotations reach 4 trillion USD, that is 30 times more than the general volume of all stock market exchange in the US. Like any other market, Forex trades certain goods. In the case of the money market, these goods consist of national foreign currency. Fundamentally, currency rates are set by government institutions as well as commerce companies all around the world that need to convert currency for trading in foreign countries. The main financial market danger comes from sudden drops, or when the stock index collapses.
However unlike the stock market, Forex doesn’t drop. When stocks depreciate, that means a crash is coming. But should the dollar fall, this simply means that some other currency will become stronger. Let’s take a look at the yen for example. On particular days, the USD decrease was measured with a tenth of a percent. However a drop in the USD, as with any other currency, could not cause the money market to crash, and trading would carry on as before.