Who is Participants Foreign Exchange Market

Foreign exchange market is a form of exchange for the global decentralized trading of international currencies. The foreign exchange market to help international trade and investment by enabling currency conversion. For example, Indonesian people will buy a car from the UK and the UK want to buy palm oil from Indonesia, as this is the forex trading arise.

After World War I erupted and the world economic depression in the 1930s, people in this world want to achieve a better economic stability. In 1944 was born the International monetary system known as a fixed exchange rate (fixed rate ekchange ) results Bretton Woods agreement. Each state imposed a fixed exchange rate of its currency against the U.S.  Since then the economy of European countries and the United States began to grow rapidly .

The importance of forex (foreign exchange) arising in connection with the development of international trade and the increasing velocity of circulation of foreign currency. From this it can be seen that foreign exchange is not limited to mere exchange such as money changer but a broader sense and we can make a profit from a forex business. Therefore, the foreign exchange market is also trading securities term. During its development, the foreign exchange market itself has grown rapidly in the early 70's . As for his cause because :

1. Foreign exchange rate movements had a significant movement once so attractive for investors to invest here and interact with the market trading foreign currencies.
2. Globalize its business. With increasingly fierce competition makes the companies that interact with the foreign exchange market should be looking for new resources that are cheaper, and spread all over the world, giving rise to the supply and demand are determined by market mechanisms.
3. Rapid telecommunications development by the means of telephone, telex, facsimile, internet easier for market participants to communicate so that air can easily deal with.
4. Potential profits in foreign exchange markets tend to be large so exciting to greater market and the desire of all parties want to make a profit in this transaction .

Kuncoro ( 1996:107 ) If there is a single international currency, the foreign exchange market may not be necessary. Reality show, in every international transaction currency is always used. In other words, there is a need to convert one currency into another currency. This is what gave rise to the demand for foreign exchange transactions. World forex market offers a mechanism that can solve complex and diverse transactions efficiently .

The main intermediary in the foreign exchange market is the main banks that operate throughout the world, especially the trade exchange. Banks are connected to the telecommunications network which is very advanced and sophisticated, which can connect the bank with its main clients and other banks around the world.

Unlike the stock market which has a trading floor ( trading floor), brokers of various banks in the foreign exchange market and the deal never met in person. Only telephone, modem, fax machine, computer terminal or telex linking demand and supply exchange.

In the foreign exchange market, there is no uniformity, a lot of foreign exchange markets are interconnected to each other where different currencies traded, thus indirectly no single exchange rate. For further details about its a supply and demand of foreign exchange can be seen in the economic calendar. Or the article here it necessary fundamental analysis?

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Ditulis oleh William Perkasa pada tanggal Wednesday, September 18, 2013