What is Forex and how does it work?

Today, many people have heard about the financial and currency markets, exchanges, as well as the international currency market Forex. However, few people can answer the question: "What is Forex?".

As you know, it is possible to exchange currencies on currency exchanges. In financial markets and exchanges, you can buy and sell stocks, bonds, futures. However, what is Forex? This is an international market where people buy and sell currency. The foundation date of this exchange is 1976. It was in this year that all world states abandoned the so-called "gold standard" (that is, a fixed exchange rate) and switched to an innovative Jamaican system, which assumed full free exchange, as well as buying and selling currency. Forex became a necessity for the normal, efficient operation of the entire world economy. What is Forex for the states? It ensures the flow of capital between countries is its most important regulatory and fundamental function.

On the other hand, it is not entirely correct to call Forex and the currency exchange, since it is an over-the-counter international market that does not have certain trading places. Market participants can make deals and participate in currency trading, being virtually anywhere in the world.

What is Forex in terms of the source of income and can it be used that way? The answer is extremely simple - yes, it is possible. Many earn on the difference in the exchange rate, that is, they conduct speculative trading. This became possible due to frequent fluctuations in exchange rates. For example, having bought today the euro for 1.4 dollars, and after a few days of selling it for 1.5 (the exchange rate changes very quickly), you can earn 10 cents on this deal. For many people, such speculative activity has long become a profession, which can bring a fairly high income.

The question "what is the Forex market " became more clear. But how to get there?

To do this, there are specialized companies, firms, offices that provide access to trade on the international Forex market.

These are the so-called brokers and dealing centers. For example, in Russia, many have heard of such firms as Teletrade, Forex Club, Alpari and many others.

What is the "Forex Club", for example? This is just such a dealing center, with the help of which any person can trade in this market.

There are quite a few advantages of working in the international currency market Forex. For example, the ability to profit regardless of the direction of the market trend. Trade in this market can be both on the rise and at the depreciation of currencies. Since it works around the clock (the main trading floors are located in all time zones), you can trade at any convenient time. Trade is not conducted only on weekends. What is Forex in the context of "tools" of access to this market? You do not actually need anything: a laptop, a computer or a smartphone with a special program installed and personal data of a broker who has your deposit account opened for trading.