Currency exchange markets
he foreign exchange market is very multifaceted. Many economists are still arguing about how to correctly interpret this concept.
The foreign exchange market is a system of stable economic and organizational relations arising from transactions for the purchase and / or sale of foreign currency, payment documents in foreign currencies, as well as operations for the movement of capital of foreign investors.
There are dozens or even hundreds of definitions of the foreign exchange market, each of which has its own peculiarity. As they say, how many people, so many opinions. But no matter how you understand and interpret the concept of "foreign exchange market", its essence will not change, it will still have clear functions and fulfill the economic tasks set. In simple terms, the foreign exchange market is a place where investors, sellers and buyers of currency values come to a certain consensus.
Perhaps this article was written much later, but the situation that is happening in the foreign exchange market made us understand in more detail some concepts, understand why significant jumps in the dollar and euro exchange rates occur, who influences these changes, how to protect ourselves from loss of value for money. Of course, within the framework of one article it will be difficult to consider general concepts, to analyze what is happening, and even delve into financial analytics. But we will try to give answers to many questions that arise in the most concise and informative way.
Foreign exchange market: what is it? As you already understood, the foreign exchange market is a system of special economic relations that are built on the sale and purchase of currency values. This market has all the attributes of an ordinary market: subjects and objects, supply and demand, structure, communications, price of goods, even its speculators and dishonest players. The most important difference (just like this atricle shows ForEx scalping strategy) lies in the specific product. Here, currency values and the currency itself of different countries of the world act as a basis.
Modern foreign exchange markets did not arise by chance, but as a result of the evolution of society and economic relations. It is worth noting that operations for the purchase, sale and exchange of currency existed in ancient Rome, and in Russia there were even special money changers who exchanged money, taking a small fee for this. But the first foreign exchange market, which became the "great-grandfathers" of modern ones, appeared in the 19th century.