THE MARKET AT A GLANCE
In the 1980s, cross-border capital movements accelerated with the advent of computers and technology, extending market continuum through Asian, European and American time zones. Transactions in forex market bounded from about $70 billion a day in the 1980s, to almost $2 trillion a day two decades later. This exceeds GDPs of almost all countries.
International currency market is a foreign concept to average individuals. Although it seems complex, the average individual can begin to understand and easily transact in the foreign exchange market and use it as a financial instrument for future investing.
Whether or not you are aware, you already play a role in the foreign exchange market, also known as the Forex market. The simple fact that you have money in your pocket makes you an investor of currencies. Whether you are an American, or you are a Turkish citizen you all use foreign currencies in your transactions.
The cash people have and money in their savings account are particularly in U.S. Dollars, German Mark, Swiss Franc and Japanese Yen. The value of your stocks, bonds, and other investments are expressed in U.S. Dollars and other main currencies.
By holding U.S. Dollars, for example, you have basically elected not to hold the currencies of other nations. Your purchase of stocks, bonds, and other investments, along with money deposited into your bank account represent investments which rely heavily on the integrity of the value of the currency in which it is denominated---the U.S. Dollar. Due to the increasing and decreasing value of the U.S. Dollar with respect to other currencies and the resultant fluctuation in exchange rates, your investment portfolio may have experienced changes in value, thus affecting your overall financial status. With this in mind, it should be no surprise that many shrewd investors have taken advantage of the fluctuation in exchange rates using the volatility of the foreign exchange market to trade currencies and put more money in their pockets.
Forex
Forex Graph