Financial
markets in the world are thought as organizations that study, show statistics
and fluctuations of their internal operations, regarding to different products,
as currency, goods, shares and stocks, regulating the value of these products
from one to the other, respectively, depending on varied aspects of demand,
supply, costs and labor.
Like this,
being FOREX the principal financial market of the world in the matter of
currency, it has the responsibility to study the statistics of supply and
demand of money, regulating FOREX the resulting exchange rates as information
that actually all traders must know and manage, in order to be able to carry
out operations.
To explain
this phenomenon better, FOREX with the help of studies and research of market movements
and fluctuations is able to settle the exchange rates of all the currencies
around the world respecting each other, depending on the different aspects
which bring a currency economic strength, next to a different one from another
country that does not.
In this way
FOREX and the exchange rate result on giving the frame from countries to
negotiate in macro-economy in relation to the exchange of products, with
importations and exportations, and in micro-economy for those traders that are
able to perform smaller operation and make money trading.
Exchange rates as key to FOREX operations
The
exchange rate of currencies and its movements give the possibility for FOREX
traders to earn money, through the investment of resources and different
currencies and mixed operations, with the previous study of tendencies and
research of such fluctuations in a certain period of time, resulting in a
profit where the operator buy the currency that is about to gain value and sell
other currency which the tendency shows is about to lose value.
On the
other hand, different operations in trading can be done according to FOREX and
the exchange rates and other financial markets, because this specific market
has the essential function to give money determined value, depending on economic
aspects and conditions; which is the same, FOREX gives value to material things
also being an imperative market to watch for traders focused on goods, shares,
stocks and other investment assets.
