Currency exchange through purchase and sale in the foreign exchange market.By itself, the forex market is a system that provides the necessary socio-economic and organizational aspects, nuzhye to trade currencies.World currency market - this is primarily a competitive market and, therefore, it is always present a large number of participants.In contrast, currency exchanges, where traders make due to exchange rate differences on the market we are talking about economic relations between importers and exporters of goods.They are also known as the primary subjects of the market, and the formation of the basic supply and demand it is their responsibility.
regard to the above traders, they are considered as a commodity currency, and carry trade currency to make a profit.It should be noted that such activity is the most characteristic feature of modern foreign exchange market.Today 9 out of 10 transactions - this is buying and selling with the aim of earning on the difference in rates, while at the same time on the trading account for the relatively small size of the market.
According to the classification of the world foreign exchange market can be called a multi-level.This means that it is composed of national, regional and international markets.At the national level means transactions are banking systems.Regional foreign exchange market - a place where buying and selling is carried out SLE, as well as local currencies.Three main markets are such continental and represent Europe, Asia and America.Each of them has several financial centers.The volume of transactions on a daily basis amounts to hundreds of billions of dollars.Above regional - international market, which is, in fact, is their totality.Money is constantly moving between the markets, due to the change in quotations - as a result at the international level is always maintained balance.
One of the basic concepts, which operates the world currency market, a convertible.Currency can be freely convertible, partially convertible or non-convertible.The better the score, the more popular is the currency in the markets of different levels.To date, foreign currency not much - is the US dollar, euro, Swiss franc, pound sterling, Japanese yen and some other currencies.In particular, the leading positions may soon be the Chinese Yuan, but so far this is not happening because of the specific monetary policy in China - its currency artificially constrained from strengthening.
SLE not only freely traded in the market at all levels, but also acts as a reserve in most countries, along with the precious metals.If the currency is converted in part, it rarely goes beyond the regional market.As an example of such a currency can lead the Russian ruble.Non-convertible currencies for various reasons, can be used only within a particular country.One of the most striking examples to date - North Korean won.The closed nature of the economy leads to the fact that the global foreign exchange market is not considering the won as means of payment.
