The Foreign exchange market
The trade with foreign exchange represents world-wide the financial market largest with distance and reaches with a daily volume of up to 3 trillion US Dollar an impressing extent. By the introduction of the Euros the everyday occupation of many Europeans with strange currencies reduced strongly and the foreign-exchange trading became thereby for many less seizablly. The basic principle is simple and understandable krw exchange.
Even a complex economic system is based on the fact that each available commodity at a certain market a certain price can be assigned. This applies to products of the daily life likewise, as to raw materials, shares and also stranger currencies. The concrete price depends here on the relationship between supply and demand. The more consumer are interested in a certain product and the less of this product gives, the more highly rises its price. If only few are interested in the product and if it is beyond that in a large quantity available, then the price in the consequence sinks. Due to the fact that humans today’s daily communicate internationally and are world-wide available nearly all goods by modern logistics, it adapts itself the prices of different markets automatically with the time. Here it comes to temporal delays, so that a certain property at a commercial centre exhibits a price, which differs from the price at another commercial centre.
The trade is based likewise on a simple basic principle. Each dealer is endeavored to acquire and expensively sell a commodity favorably. At the beginning of the history of the trade this activity was always connected with the travel. If a way was found here to transport a desired commodity over long distances to acquire it at the place of origin inexpensive in order to then sell it at the destination to a by far higher price, then the conditions for economic success were fulfilled. Today it is no longer necessary that dealers the world on the search for favorable products bereisen. Telecommunications, data traffic and to Internet replace the personal presence, while a standardized logistics provides for transport without risk and a calculable. Thus the forms of the trade in the course of the centuries changed strongly, while the basic principles remained alike.
The saying applies in its entirety to the modern Foreign exchange market The platform for the foreign-exchange trading “>foreign exchange trading. Here a strange currency is nothing else, as a product, whose price can be expressed in any other currency. Thus a view in Internet is sufficient, in order to determine, which euro amount for the equivalent of a US Dollar can be acquired and in reverse. The value definition of currencies takes place thus in principle in pairs. The value of a currency is represented for this in the value of another currency. Actually the trade means with foreign exchange that a currency is used, in order to buy another currency. Foreign exchange transactions consist thus in principle of the simultaneous purchase and selling of currencies. This does not happen today’s daily however any longer in physical development. The acted money are not really moved, are not exchanged at bank switches or are not delivered to the buyer. Just as little is the foreign exchange trading bound a stock exchange or a market to a firm commercial place, thus, but effected exclusive on the electronic way.
This form of the trade is called interbank market.
