What is the function of forex market?

[Daisy]

We can also make money as a day trader or long term investors in foreign market. These are the benefits for forex investments. Its easy to profit daily from forex. We can make money as long as we have knowledge and skills and anyone over the globe can do it online. So its very convenient and take very little capital to do. I think its better than gambling cause there is less risks then gambling.

 

[Pettyeve]

The function of the forex market is that the traders will in here have a chance to be making money from their trading. Forex brings traders in the business together so that they can perform an over the counter selling and buying of currencies.

 

[kasual]

Forex market is a place where traders can conduct buy and sell currencies. The increase or decrease the price rate of a currency against other currencies determine by how high the buyers or sellers numbers of transaction in market. Price increase because buyers take control over and price decrease due to the sellers dominant in market.

 

[Decub]

I see Forex as a means of exchange between traders, firms, organizations like banks and investment companies. Of course, since it is a business organization, there must be a target which is that of making profit. Forex offers participants a chance to make profits off their trades.

 

[gkintl]

The functions of forex market serves two main functions: converting currencies and reducing risk.
There are four major reasons firms need to convert currencies.
First, the payments firms receive from exports, foreign investments, foreign profits, or licensing agreements may all be in a foreign currency. In order to use these funds in its home country, an international firm has to convert funds from foreign to domestic currencies.
Second, a firm may purchase supplies from firms in foreign countries, and pay these suppliers in their domestic currency.
Third, a firm may want to invest in a different country from that in which it currently holds underused funds.
Fourth, a firm may want to speculate on exchange rate movements, and earn profits on the changes it expects. If it expects a foreign currency to appreciate relative to its domestic currency.
I think this information may be helpful to you.
For more details please visit: http//:forex.com

Of the four reasons you have provided, the first three reasons contribute to only 30% of forex market turn over. The rest of the volume is from speculators which includes the dealing desks of major banks. The leverage mechanism, liquidity and the 5 decimal quotes provide undue advantage to forex market over other financial markets. Major banks and financial institutions which can easily invest billions of dollars, thus, participate in this market.

 

[UMOFX AIR]

In forex trading we exchange one currency against the other currency . All trading is done in pairs. We sell one currency and buy second one against it. Forex market working is simple that buy or sell on given price and collect profit or loss according to the market position.

 

[kasual]

Currencies exchange give contribution to the currencies rate. However, the biggest impact come from big player and retail traders who trade in the market directly. Fast and sharp movement in price wouldn’t happen if it rely on currencies exchange activities only.

 

[tray]

There are so many usefulness of forex trading the trader must be sure that they try their possible best and learn how to trade and win their trade when you have made this your priority I think its the real way for succees archivement here

 

[kasual]

Forex market has function to point out currencies rate. The demand of exchange and commerce transaction is the reason why currencies rate being fluctuated. When we see that price of a currency being increase or decrease, that’s because supply and demand factor. We can see live currency movement on our trading platform chart.

 

[sindarin]

Currencies exchange give contribution to the currencies rate. However, the biggest impact come from big player and retail traders who trade in the market directly. Fast and sharp movement in price wouldn’t happen if it rely on currencies exchange activities only.

The biggest impact of the world i think aside from Stock. It could change the economy of the market dramatically, And it could make someone become rich or become poor just in matter of days.

 

[Decub]

Forex as a business goes beyond the usual money or profit we want to make out of it up to the stage or level of being a business which provides a base for foreign exchange transaction. In as much as it is a business for some retail traders, there are also those like banks who use the rates for their day to day transaction.

 

[budado]

The main reason why their is forex trading and forex market is because forex is the venue of exchanging currencies of the banks and financial institutions. When we export goods for example we get paid by the currency of that country and we need to exchange it to our local currency. That's what forex really for. Foreign exchange.

 

[sindarin]

Foreign Exchange market is big, i think the biggest market even all stock exchange combined, even in last 2013 Foreign Exchange total turnover already more than $4 trillion, with $2 trillion come from spot trading, the funcation of the market is where trader and other traders meet or where everyone that involved in forex meet.

 

[Babar222]

he foreign currency exchange markets are where money from different countries are bought and sold. The focus of foreign currency exchange is the facilitation of international commerce. Foreign currency exchange markets can also function as a method of making investments, can be used by governments to impact the value of their currency and can help companies reduce losses due to changes in exchange rates.

 

[budado]

Its more like an exchange. We don't buy and sell currency. We only exchange it from one currency to another and the value will depends on the supply and demand. Because if we say we bought a currency then who bought who?

 

[Decub]

Besides earning money, Forex is also very important to banks and other financial institutions. It is because the traders or the retail traders see it as basically a place for earning that makes it look as though it is specifically for it but I'm sure, there are other rates which are used by traders as well.

 

[sindarin]

Its more like an exchange. We don't buy and sell currency. We only exchange it from one currency to another and the value will depends on the supply and demand. Because if we say we bought a currency then who bought who?

That is why its called as Foreign Exchange, because we exchange one to the other currency. I think buy and sell is pointing to what kind of currency we want to exchange. like EURUSD, if we sell means we exchange our EUR to USD and if that is buy means we exchange our USD to EUR.

 

[budado]

Forex market is an online market in which all our buy and sell order has been process and filled. And its our forex broker sites that put our order in the market. Over all we going to make it big in forex trading if we all know how to do analysis properly.

 

[sindarin]

Forex market is an online market in which all our buy and sell order has been process and filled. And its our forex broker sites that put our order in the market. Over all we going to make it big in forex trading if we all know how to do analysis properly.

It is just like market in offline worlds, people will meet here and doing transcation. All exchanging are happening here, people buy and selling their currency. But this market is not centralized but decentralized one.

 

[rexway]

forex trading have so much functionality but the first thing for any trader is for him to learn how this buying and selling of a thing is been done so for this reason I think that its good for any trader to chek the price action since the market is all about buying when your price or the price get appreciated and sell otherwise ,so its ultimately the buying and selling of difference currency pair in large quantity