| Most experienced traders consider that the best | | | | usually affect a currency by altering the interest |
| and most profitable of the capital markets is the | | | | rate structure and these will either appreciate or |
| FOREX market. During many years FOREX | | | | devalue the currency of that particular country |
| trading had been the sole domain of major banks, | | | | and reflect the monetary health of its economy. |
| large financial institutions and countries central | | | | It is known that some banks allocate as much as |
| banks; for example the U.S. Federal Reserve | | | | 20-30% of their funds into the FOREX market, |
| Bank. But these days, thanks to the internet the | | | | making 40-60% of all their profits trading |
| market has been opened to everyone willing to | | | | currencies. In fact there are experts that consider |
| learn the best techniques in forex trading and with | | | | that banks will cease their loan transactional |
| the intention of making substantial profits as the | | | | business in a few years, and better focus on |
| before mentioned institutions that annually and | | | | currency trading as their primary revenue source. |
| consistently make pretty high profits from trading | | | | The forex market has five major currencies: US |
| in the Foreign Exchange market. | | | | Dollar, Japanese Yen, British Pound, Euro and the |
| Forex is a market that is continually oscillating and | | | | Swiss Franc. It is due to their great popularity in |
| in consequence with good trading opportunities | | | | world's commerce transactions and its high |
| during the whole trading day; this behavior is in | | | | activity that these five currencies account for |
| part due to the increase in global trade and | | | | over 70% of North American trading. Of course |
| foreign investments during the last two decades | | | | there are other tradable currencies; they include |
| that has made the economics of all countries | | | | the Canadian, Australian and New Zealand Dollars. |
| more dependent upon one another. This means | | | | These minor currencies account for 4% - 7% of |
| that as a country's currency fluctuates as a result | | | | the total market volume. Together, all this five |
| of economic activity it affects the currency of | | | | majors and minors currencies constitute the |
| other countries. For example; economic factors | | | | backbone of the FOREX market. |