The Foreign Exchange Market
The foreign exchange market (United Kingdom: foreign exchange market, forex) or simply FX is a type of trade or trade transactions of a country’s currency against another currency (currency pair/pair) that involve major markets in the world for 24 hours continuously.
Foreign exchange market movements spun from New Zealand and Australia market which takes place at 05.00-14.00 WIB, continued into the Asian market, Japan, Singapore, and Hong Kong, which took place at 07.00-16.00 WIB, to European markets namely Germany and United Kingdom that lasted at 13.00-22.00 WIB, to the United States market that lasted at 20.30-10.30 WIB. In the development of its history, the central bank belongs to the countries with reserves of foreign currency the largest though can be defeated by the power of the foreign exchange market which is free.
According to the survey BIS (Bank International for Settlement, the central bank of the world), performed at the end of 2004, the value of the transaction of foreign exchange market totaled more than USD $ 1.4 trillion per day.
Given the level of liquidity and accelerating the movement of high prices, foreign exchange has also become the most popular alternative because of the ROI (return on investment or rate of return on investment) as well as the profit that will be obtained can exceed the average trade in General. As a result of rapid movement, then the foreign exchange market also has a high risk.