Forex system

The Forex exchange is a currency market that offers an interbank option for exchanging it at free prices in order to make a profit. The currency rate (in other words, «quotation») has no clear restrictions and fixations.

A bit of Forex history

In August 1971, the President of the United States decided to ban the free purchase of gold for dollars. Thus, the country abandoned the Bretton Woods agreements, which provided gold support for the dollar..

The old system was replaced by a new one — the Jamaican monetary system, in which twenty non-communist states participated. The idea of ​​the agreement was to create a free pricing policy in relation to gold.

If you look at the daily currency turnover in the Forex market over the past 40 years, you can see the development of the system (the trend is observed every 10 years):

1978 — $ 5.2 billion;

1987 — $ 600 billion;

1993 — $ 1 trillion;

2000 — $ 1.5 trillion;

2010 — $ 4.2 trillion.

Experts predict the amount of daily currency turnover in the interbank Forex market in 2020 at the level of $ 10 trillion.

Forex market participants and possible risks

Forex is an interbank market system on an international platform. Operations on it are performed by both commercial, investment, and central banks, pension funds, dealers, insurance companies, etc. Forex analytics from Admiral Markets provides information on currency quotes.

Based on this data, you can develop a strategy that will definitely bring profit. But the Forex market does not allow currency conversion in small amounts — a conversion package of a payment is allowed into the system, provided that it contains an amount of $ 60-300. The exchange of smaller payments on the international platform is allowed through financial intermediaries, who take% of the transaction for their service.

Various factors simultaneously affect the stability of exchange rates. Therefore, it is impossible to predict the result of the transaction by 100%. But along with the instability of market indicators, it is worth considering the risks from brokerage work:

If the broker goes bankrupt, it will be very difficult to get your money from him.

The mechanism of working with deals at pre-fixed prices can bring losses.

Instant price jumps with an instant return to the initial position are not confirmed, usually by official rates.

Working in Forex is a work that requires studying news, new materials, analytics, charts, etc. It is up to you to make the decision to enter and exit this market, but remember that money will multiply only when it is in circulation.