| Most experienced traders consider that the | | | | altering the interest rate structure and |
| best and most profitable of the capital | | | | these will either appreciate or devalue the |
| markets is the FOREX market. During many | | | | currency of that particular country and |
| years FOREX trading had been the sole domain | | | | reflect the monetary health of its economy. |
| of major banks, large financial institutions | | | | |
| and countries central banks; for example the | | | | It is known that some banks allocate as much |
| U.S. Federal Reserve Bank. But these days, | | | | as 20-30% of their funds into the FOREX |
| thanks to the internet the market has been | | | | market, making 40-60% of all their profits |
| opened to everyone willing to learn the best | | | | trading currencies. In fact there are experts |
| techniques in forex trading and with the | | | | that consider that banks will cease their |
| intention of making substantial profits as | | | | loan transactional business in a few years, |
| the before mentioned institutions that | | | | and better focus on currency trading as their |
| annually and consistently make pretty high | | | | primary revenue source. |
| profits from trading in the Foreign Exchange | | | | |
| market. | | | | The forex market has five major currencies: |
| | | | US Dollar, Japanese Yen, British Pound, Euro |
| Forex is a market that is continually | | | | and the Swiss Franc. It is due to their great |
| oscillating and in consequence with good | | | | popularity in world's commerce transactions |
| trading opportunities during the whole | | | | and its high activity that these five |
| trading day; this behavior is in part due to | | | | currencies account for over 70% of North |
| the increase in global trade and foreign | | | | American trading. Of course there are other |
| investments during the last two decades that | | | | tradable currencies; they include the |
| has made the economics of all countries more | | | | Canadian, Australian and New Zealand Dollars. |
| dependent upon one another. This means that | | | | These minor currencies account for 4% - 7% of |
| as a country's currency fluctuates as a | | | | the total market volume. Together, all this |
| result of economic activity it affects the | | | | five majors and minors currencies constitute |
| currency of other countries. For example; | | | | the backbone of the FOREX market. |
| economic factors usually affect a currency by | | | | |