Our Review of Forex Killer of last week was centered around the basic principles of this industry. This week see the extension of this discussion to more advanced concepts such as systems as well as the completion of our current review of forex killer.
In the world of Forex market, like in most things really, there are only two different types. The Flexible and the Fixed . A Flexible Forex Market applies when it is the Central Bank who decides how much each currency is worth. This valuation is based on supply and demand and doesn’t require the central bank to buy or sell currencies in order to maintain a stable market price.
The Fixed Forest Rate is my more rigid in that currencies are fixed to each other at a determined rate. The central bank then acts as buffer in order to maintain the market value of the currency.
In the case of a price increase for a particular currency for example, the Central Bank has to sell some of its own currency to compensate for the fluctuation. Conversely, when the market value of the currency decreases, then the Bank now has to purchase more of that currency for the same purpose of bringing back the situation to the market valuation of the said currency.
Just like a Pendulum swings in an ever lasting attempt to reach a status where the swinging movement stops, so that the Bank act to stop currency fluctuations until the balance is re-established.
How much is it all worth it then?
Well there is lots of it involved in the Forex Market since it is the biggest financial market worldwide. If you have ever heard the expression: “He/She is rolling in it” now you know it was made as a reference to Forex traders.
In fact there is much money involved in this market that you need a number with 13 digits to represent to value of a single day’s trade. That would be a 2 with 12 tidy zeros aligned right next to it.
This means that 2,000.000.000.000 USD are traded daily. Two trillion USD or two thousand million American Dollars! Talk about the potential of a Forex Killer Trader.
The Forex market is an over the counter market with no physical location, central exchange and or clearing houses. Indeed, all it is, is an electronic network of banks, corporations and individuals purchasing, “trading”, currencies from one another. Open 24 hours a day, it is uniquely suited to both end of the business spectrum, namely corporate institutions and independent or at home traders.
FX Traders (Forex traders) buy and sell to and from each other and this process is then fed into these networked computers to then be displaced on official quote screens.
