Forex comes from the contraction of “Foreign Exchange” which means market in french. Forex, as its name suggests, is a market that is dedicated solely to the different currencies, it allows investors to buy or sell the currency of their choice in a large inter-bank market, fully globalized. It was created in 1971.
Foreign Exchange Market to several peculiarities compared to conventional equity markets that we know well, the first of them is that it is open 24 hours on 24, from Sunday evening to Friday evening. Indeed, as operators around the world involved in this market it should be permanently open to accommodate different time zones. It is closed on weekends.
The meeting begins in Australia to continue in Asia, Europe and the United States and the loop is closed.
Forex involves several categories of stakeholders. First, companies that carry out international contracts and who wish to hedge against fluctuations in order to assure the stability of their income. Secondly, where there are large institutional investors, through the major banks, which carry out transactions on this market but speculative or hedging. Finally, individuals who begin to arrive en masse in this new market. Tenders towards them have multiplied and have allowed individuals to return to this market that was previously reserved for professionals.
Forex interest for individuals is relatively new but they have shown a strong enthusiasm for this new type of investment. If France is just starting to be affected by the phenomenon during the year 2005, the United States offering investment services on the Forex past few years.