Forex Capital Markets

By Author: Cristian Stan
Total Articles: 31
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Foreign exchange or Forex is the conversion of one currency to another. As a business venture, one can have the opportunity to earn easily depending on the amount of information available to him such as the current Forex rate among other things, and on how you can use such information into a clever business move.

Take for example; you exchanged a 500USD amount to Philippine Peso while the current forex rate is 45.32. The total amount you got was 22,660 pesos. After a few months, due to some financial crisis that affected the US economy, the dollar value dropped to 44.88 in peso. Naturally, you realized that if you only waited longer you may have gotten more pesos. But then you thought of looking at the bright side of this by taking advantage of buying again another 1000 dollars but this time at lower price thinking that you can trade it later when the US recovers from its fall.

After several days, as you have anticipated, the dollar was back on its feet, making a new rate of 1USD: 45.55PHP. Now you can exchange your dollar funds to much more pesos compared with the profit you made the few months before. Now imagine ...
... that the money you decided to invest was a lot more than the amounts sampled above. How much earnings can you get just by converting your money to another currency? That is how the potential of this market is so big!

Forex Capital Markets is so huge and so liquid and so fast it can turn a hundred thousand dollars into millions or even billions in just a blink of an eye. Deals like this arrive in a split second. And the fact that this is an investment enterprise that does not sleep - Forex capital markets are very much wide awake serving country by country 24/7 - adds to the list. Furthermore, the risks surrounding this merchandise are not as handful and vulnerable as those in stocks. After all, all businesses have a risky side no matter how easy it may have been represented.

It is through these very reasons why Forex trading is considered to be an outright rival of even the top ten biggest or largest stock markets available today. More and more investors are doing their bests to tap on this very promising commercial undertaking. They wanted to get into the trend initiated by Forex that although it is nothing new - it has been considered to be the oldest financial market in the world but maybe was unpopular in the early times caused by lack of information was restricted by some international pacts - the attraction is totally there.

Forex really started in banks but ever since its deregulation, almost two (2) decades ago, it opened many doors for new business peoples to participate. Rates had been downgraded to compete with bank offers. They were even more adjusted to lowest of bids with the existence of something as sinister as black markets where both buyers and sellers benefit most. Whether people like it or not, this sounds rather tempting but maybe not so for big dealers.

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