Features forex market

The forex market is a global market, but has 24-hour access in practice is limited by the interruption of operations at the weekend. Even in those periods of disruption, operators can place positions purchase or sale will be invigorated when the market begins to fluctuate. It is equally important to note that during the negotiation period, the time of day in which it is accessed in this market has a direct impact on liquidity to operate in one or several currencies. The times when you open the major world markets are the most liquid and movement, while the Forex market is not directly linked to the nature of these trading venues. Since we are talking of an over, you should not underestimate the changes that these centers can cause.

Among the implications of being a centralized market it is that there is one quote for the currencies that are traded: it depends on the different actors in the market.

The main trading centers are lasbolsas London, New York yTokio. First open the then European and Asian markets finally open American markets. The market opens Sunday afternoon (when the East Coast of the United States) and closes on Friday at 4:00 pm ET. This allows continued access to markets with the benefit of greater liquidity and ability to quickly to economic or political events that have effect on him answer.

Fluctuations in exchange rates are caused generally by actual monetary flows as well as by expectations of changes in them due to changes in economic variables such as GDP growth, inflation, interest rates, budget deficits or trade surpluses, among others.

Major news are published often on scheduled dates, so that investors have access to the same news at the same time. However, large banks have an important advantage: they can see the order book of its customers.

In the forex market, currencies are traded on crosses. Each crossing of currencies constitutes an individual product and is traditionally noted XXX / YYY, where YYY is the international three-letter code ISO 4217 in which the price of one unit of XXX is expressed. For example: EUR / USD is the price of Euro (EUR) expressed in US dollars (USD) understood that 1 euro = 1.3272 US dollars (22 August 2014)

According to the BIS study, the most traded currency crosses were:

EUR / USD - 24.1%

USD / JPY - 18.3%

GBP / USD - 8.8%

The US dollar took part in 87% of transactions, followed by the euro (33.4%), the yen (23%) and pound sterling (11.8%).

In the 2010 BIS report :, the negotiations with the Euro showed a decrease for the first time since its creation in January 1999, a trend that has continued as shown in the report of 2013, from a 39% to 33.4%. For example, the euro versus a non-European currency ZZZ will usually include two crosses: EUR / USD and USD / ZZZ.
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The Foreign Exchange (Forex) has characteristics that make it unique in its kind. Among the main features of Forex include:

• geographic dispersion. Unlike the stock market, the Forex market lacks a centralized location
• Huge volume of transactions: The Forex market moves every day around 3 trillion ($)
• Large number and variety of participants: In the Forex market involved large banks, central banks, large and small speculators, multinational corporations, governments, and other financial markets and institutions.
• (Almost) always open: the Forex market operates 24 hours a day (except weekends)
• Extreme market liquidity
• Variety of factors causing exchange rates.