Globalisation is a worldwide movement toward economic, financial, trade and communication integration. Globalisation implies “a process which involves growing economic competition, openness and interdependence of countries worldwide”. As a result, globalization presents Opportunities and Challenges in the world of financial markets especially foreign exchange market. The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another currency. In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign currency market started during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system. (The Bretton Woods Accord – Near the end of WWII, The Bretton Woods agreement was reached on the initiative of the USA in July 1944. The conference held in Bretton Woods, New Hampshire rejected John Maynard Keynes suggestion for a new world reserve currency in favor of a system built on the US Dollar.)
Let’s start with the fact that getting started in FOREX trading is simple and you can always test your abilities first in a mam forex account before you go ‘live’ with real money.
Why Forex ?
Remember: to get started in fx online trading, we have to get to know what FOREX is. For the novice, FOREX trading involves buying and selling the different currencies of the world. Actually, a FOREX deal is made when one purchases one currency and sells another at the same time. You should know that it is always traded in pairs, Euro/USD, CHF/USD, USD/JPY etc – you get ‘short’ in a currency every time to buy another and the income is made when you buy-low and sell-high.
– All anyone needs to take part in the action is a PC/notebook with good internet connection. That’s all!
• 24 hour Market
– The FOREX market is open 24 hours a day. You can trade there anytime and anyplace you wish.
• Narrow focus
– There is no room for confusion even though the market is huge. It’s quite simple to get a clear view of what’s going on in the financial market.
– The enormous volume of daily trades makes it the most liquid market in the world (just over $3 trillion only!)
• Cornered Market
– It’s sure one huge market where NOBODY can corner.