International currency market is the largest market in the world, where are dwarfed in front of all other financial markets.
And realize the magnitude of this market when you know that the volume of trading in the New York Stock Exchange is the largest stock exchange in the world up to 25 billion dollars a day while on the stock exchange are traded 2,000 billion dollars a day!! .
This is more than enough to realize how big this market.
Historical background
You may wonder why the lack of reputation for trading currencies when compared to trading stocks and commodities, which began in its current form almost more than a century ago.
The reason is the modern era.
After World War II and in 1947 was signed between the victorious nations of the Convention on "Bretton Woods" to arrange the conditions Allaguetsad global Among the terms of this agreement was the process of assessing currency against the U.S. dollar substitute for gold as a way to help build what was destroyed by the war in Europe debilitating, and was of the most important results of this decision is the stability of exchange rates and with minimal fluctuation against the dollar and against each other.
There was no room for trading in currencies, which are mainly based on the exploitation of currency fluctuations against the dollar.
But in 1970 and as a result of difficult economic conditions experienced by the United States decided to U.S. President Richard Nixon decision famous disengagement between the U.S. dollar and the currencies of Europe and Japan, which led to affected currencies of Europe and Japan this decision severely affected, becoming quick swing up and down under the influence of policy and economy of each state of these countries and under the influence of the strength or weakness of the U.S. dollar and the U.S. economy, and this date this market grew at one time in the United States, Europe and Japan and other countries.
But as a result of the novelty of this market on the one hand and weak means contact on the other hand it was impossible for banks and major financial institutions trading in this market of enormous magnitude.
But with the continuous and rapid development of the means of communication and the rapid spread of computer use, and with the Internet revolution individuals can become enormous and since no more than a simple currency trading period and take advantage of opportunities to end the fictional profits and very quickly.
As you can see, the currency market is the most modern markets among the rest of the financial markets, making it a mysterious and unknown to most people who are accustomed to trading stocks and commodities for decades far as well as the people who originally Aataamilon any of the financial markets.
Why do people buy currencies of other countries?
When a dealer from Egypt, for example, by purchasing goods from Japan, he must do so the value of these goods the Japanese currency accepted by the seller, the seller often the Japanese would not accept to get the price of his goods in Egyptian pound, but he wants to receive the price of his goods either currency town (yen) or currency acceptable in most countries of the world such as the U.S. dollar or the euro or the pound sterling.
Here is not before the Egyptian merchant only to replace what he has of pounds to purchase the U.S. dollars to send to the Japanese seller for goods bought by him.
If the Egyptian merchant to buy the dollar and pay LE interview.
Similarly, if a person wants to travel to the Arab one of the European countries for the purpose of tourism, for example, they must buy its local currency unified European currency (Euro) to be able to pay what of buying goods and services in the European countries that will be visited.
Similarly, if there was an Arab wants to invest in Britain to buy a property or shares, for example, an astronomical pay the value of these investments must be paid worth in pound sterling or the English currency accepted by the seller كالدولار example, if that replaces the actual local currency and buying pounds.
This is the most important reasons why somebody to buy another country's currency ..
Trade and investment and travel.
This applies to nations as it applies to individuals, states share, including goods and services Hraoua and selling astronomical country will pay the value of imports must be paid the value of the currency of that State or currency accepted by that State, States have therefore always because you buy the currencies of other nations.
As well as for investments states and financial institutions that invest in the state pay the value of these investments in countries that invest currencies or accepted currencies such as the dollar, euro and pound.
Did you know now why is the currency market is the largest in the world?
This is because there are millions of trade operations, investment and travel cases occur every day and everywhere all over the world, there is if a continuing need to buy and sell currencies in every day and all over the world, from here it is traded daily at least $ 2 trillion .. !!
This figure represents a massive currency devaluations that are bought and sold every day in different parts of the world.
As mentioned, the main reason why people and nations who buy and sell currencies is trade and investment operations and travel taking place between individuals and nations.
The purpose of getting on another country's currency in all previous cases is to use this currency in the exchange of goods and services between individuals and nations.
People are buying another currency is not love them!!
But because it enables them to obtain goods from another country, that people buy and sell currencies as a tool for the exchange.
But how do we buy currency?
And that paying the corresponding other currency ..
You must be you ever go to a money exchange bureaus and you replace what you have of the local currency in exchange for another currency, for example, U.S. dollars.
You do you sell your currency and buy the U.S. dollar.
Of course, in order to buy something they must know the price .. As well as when you want to buy a currency must know the price in another currency.
And realize the magnitude of this market when you know that the volume of trading in the New York Stock Exchange is the largest stock exchange in the world up to 25 billion dollars a day while on the stock exchange are traded 2,000 billion dollars a day!! .
This is more than enough to realize how big this market.
Historical background
You may wonder why the lack of reputation for trading currencies when compared to trading stocks and commodities, which began in its current form almost more than a century ago.
The reason is the modern era.
After World War II and in 1947 was signed between the victorious nations of the Convention on "Bretton Woods" to arrange the conditions Allaguetsad global Among the terms of this agreement was the process of assessing currency against the U.S. dollar substitute for gold as a way to help build what was destroyed by the war in Europe debilitating, and was of the most important results of this decision is the stability of exchange rates and with minimal fluctuation against the dollar and against each other.
There was no room for trading in currencies, which are mainly based on the exploitation of currency fluctuations against the dollar.
But in 1970 and as a result of difficult economic conditions experienced by the United States decided to U.S. President Richard Nixon decision famous disengagement between the U.S. dollar and the currencies of Europe and Japan, which led to affected currencies of Europe and Japan this decision severely affected, becoming quick swing up and down under the influence of policy and economy of each state of these countries and under the influence of the strength or weakness of the U.S. dollar and the U.S. economy, and this date this market grew at one time in the United States, Europe and Japan and other countries.
But as a result of the novelty of this market on the one hand and weak means contact on the other hand it was impossible for banks and major financial institutions trading in this market of enormous magnitude.
But with the continuous and rapid development of the means of communication and the rapid spread of computer use, and with the Internet revolution individuals can become enormous and since no more than a simple currency trading period and take advantage of opportunities to end the fictional profits and very quickly.
As you can see, the currency market is the most modern markets among the rest of the financial markets, making it a mysterious and unknown to most people who are accustomed to trading stocks and commodities for decades far as well as the people who originally Aataamilon any of the financial markets.
Why do people buy currencies of other countries?
When a dealer from Egypt, for example, by purchasing goods from Japan, he must do so the value of these goods the Japanese currency accepted by the seller, the seller often the Japanese would not accept to get the price of his goods in Egyptian pound, but he wants to receive the price of his goods either currency town (yen) or currency acceptable in most countries of the world such as the U.S. dollar or the euro or the pound sterling.
Here is not before the Egyptian merchant only to replace what he has of pounds to purchase the U.S. dollars to send to the Japanese seller for goods bought by him.
If the Egyptian merchant to buy the dollar and pay LE interview.
Similarly, if a person wants to travel to the Arab one of the European countries for the purpose of tourism, for example, they must buy its local currency unified European currency (Euro) to be able to pay what of buying goods and services in the European countries that will be visited.
Similarly, if there was an Arab wants to invest in Britain to buy a property or shares, for example, an astronomical pay the value of these investments must be paid worth in pound sterling or the English currency accepted by the seller كالدولار example, if that replaces the actual local currency and buying pounds.
This is the most important reasons why somebody to buy another country's currency ..
Trade and investment and travel.
This applies to nations as it applies to individuals, states share, including goods and services Hraoua and selling astronomical country will pay the value of imports must be paid the value of the currency of that State or currency accepted by that State, States have therefore always because you buy the currencies of other nations.
As well as for investments states and financial institutions that invest in the state pay the value of these investments in countries that invest currencies or accepted currencies such as the dollar, euro and pound.
Did you know now why is the currency market is the largest in the world?
This is because there are millions of trade operations, investment and travel cases occur every day and everywhere all over the world, there is if a continuing need to buy and sell currencies in every day and all over the world, from here it is traded daily at least $ 2 trillion .. !!
This figure represents a massive currency devaluations that are bought and sold every day in different parts of the world.
As mentioned, the main reason why people and nations who buy and sell currencies is trade and investment operations and travel taking place between individuals and nations.
The purpose of getting on another country's currency in all previous cases is to use this currency in the exchange of goods and services between individuals and nations.
People are buying another currency is not love them!!
But because it enables them to obtain goods from another country, that people buy and sell currencies as a tool for the exchange.
But how do we buy currency?
And that paying the corresponding other currency ..
You must be you ever go to a money exchange bureaus and you replace what you have of the local currency in exchange for another currency, for example, U.S. dollars.
You do you sell your currency and buy the U.S. dollar.
Of course, in order to buy something they must know the price .. As well as when you want to buy a currency must know the price in another currency.
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