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The financial markets today have totally evolved from the way they used to be. Forex The world’s largest stock market for which a large number of traders meet daily. Professional investors analyze stock growth and decline to predict the market situation and future earnings on the platform. Two types of analysis are used: technical and fundamental.
Forex is one of the world’s largest markets. Successful trade requires calm, hard work, patience and analytical skills. To predict the market situation, a professional trader on Forex analyzes the growth of shares and their fall, and tracks the movement of certain pairs of currencies. To this end, it applies two types of analysis — technical and fundamental. A fundamental one helps a trader to consider the political and economic environment, the degree of inflation, the unemployment rate and many other factors. Forex Market’s beginnings date back to the 1970s, a time when the gold standard no longer met the requirements of today’s world economy. State leaders at the time had to replace fixed exchange rate agreements backed by a gold standard with floating rates.
Technical analysis is carried out on the history of a certain financial asset — its growth and decline. It is useful to know some interesting Forex facts about this market:
- Almost 100% of participants in this market lose the first deposit. Psychologists think that a trader playing demo scores is colder than a real one.
- Forex is the largest stock market in the world.
- Every month, 9–20 trades are opened by 41% of traders on average.
- Large deposit size is not a guarantee of successful trading on Forex. The ability to trade is the only real guarantee of success with a positive outcome.
- Forex market concept dates back to the official abolition of the gold standard.
- According to statistics, only about 5% of traders continue to trade on the Forex after losing their first deposit.
- Exchange rate fluctuations became directly dependent on demand and supply, so the conversion of currencies became free, the rates — floating.
- The most popular currency in the forex market is the US dollar which powers more than 88% of trades worldwide.
- The world’s major trading centers on Forex are Tokyo, New York, Sydney, Frankfurt and London.
As at present, trade in the currency market was marginal, effected through loan funds. A little later the margin requirements were simplified, which led to the entry of new participants: private traders, dealing centers and brokerage companies. Brokerage companies are still intermediaries for individual traders, providing them with access to trade.