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Forex: It is world’s most developed financial market and its liquidty is the highest. In this market that parity prices are determined all over the world, you can realize exchange of country currencies and also operate over valuable metals and commodities like gold, silver, oil, cotton, world stock market indices such as NASDAQ, DowJones, stocks like Citibank, Apple, Google, etc. Contrary to classic financial markets, in this market that you can obtain earning both from raising and sliding, you can gain income by using many methods such as explanation hours, economic data whose dates are established before, the technical analyses made according to past parity movements.
Forex market, revolving with a head-spinning force, became the market with the highest volume of trading among all investment markets. With the help of leverage effect, making use of liquidity sources with reference to the existing collateral, Forex provides returns on investments in a short period of time, giving it an edge over all other means of investment. The fast development of communication technologies, and their application in the field of investment made it possible to manage investments with a few clicks, from anywhere on the world. The history of Forex markets show that the exchange of currencies on the basis of a specific system, and the setting of exchange rates for national currencies date back to 1940’s. Coming out of the Second World War relatively unscathed, the US saw its Dollar replace Pound Sterling, which served as the medium of exchange to that date. US Dollar was accepted as the global currency in the Bretton Woods conference, named after the town in New Hampshire, where 730 representatives from 45 countries met in 1944. Pegged against the gold, with 1 ounce of gold fixed at 35 USD, exchange rates for other currencies were also set for the Dollar. The first Forex trade under the new global terms began with modest prospects in a fixed exchange rate environment. However, as time went by, pegging other countries’ currencies against the Dollar, and pegging Dollar in turn against gold, led to stability problems in European and Far East countries. The solution took the shape of the Smithsonian Agreement signed in 1971, under the direction of US President of the day, Nixon. The Forex market as we know was born out of this picture. This agreement abolished all exchange rate dependencies in existence, and formalized a free float exchange rate system. Today, Forex became a platform where anyone can access and invest in, thanks to technological developments. But why Forex gained its current popularity? Let’s answer this question under specific reasons:
Forex is easily accessible
Opening accounts and beginning trading is extremely easy. Investments are only a few steps away, provided that an internet connected computer is within reach.
It is easy to trade both ways
It is possible to take positions for both falls and rises in parities which constitute the object of Forex instruments. In other words, one can achieve returns not only by buying with the expectation of increase, but also by selling with the expectation of fall.
The market is open on all weekdays
The market which opens on Sunday nights (GMT+2), operates till Friday night. Therefore, it allows investments 5 days a week, 24 hours a day.
It is a free market
Given the numbers and variety of investors, no single person or entity would be able to singlehandedly direct and set prices. Therefore, it is a market free from manipulations.
Leverage is used
Leverage allows quick changes in the value of the position. This helps achieve results in very short period of times, compared to other investment instruments (the leverage enables not only high returns in short periods, but also the risk of losses in the same period of time).
No commission charges
No commissions are charged for parities and commodities, save for some stocks. This helps open relatively low-cost positions.
Demo accounts are available
It is possible to try investments under real-world conditions, using a demo account with virtual currency. The demo account serves as the best option for risk-free applied training.
Electronic Communications Network (ECN)
ECN allows direct inputs into Forex market liquidity (interbank) without using the account trading table, and is a type of quotation where the clients’ requests are operated in external markets. The orders entered into the ECN system are instantly entered into the market, and become pending in the market. GCMAsia’sECN account allow you to make investments under the best price and competitive conditions.