Forex Trading Electrified Private Speculators

More and more German investors trying to play the speculation in the foreign exchange market. In the jargon as the “Forex Trading” designated trade in the market for currencies was until ten years ago almost exclusively reserved for institutional investors. Now, however, special brokers offer retail investors access to the foreign exchange market. The trading-oriented investors attracted mainly speculative: We are working with a large financial leverage and the majority of trades will be completed within a few days.

The Forex market is the biggest market in the world. Estimates of the Bank for International Settlements, according to the daily trading volume amounted to three trillion dollars, which was roughly 120 percent of German GDP. The big players in Forex market are commercial and central banks and other major financial intermediaries. There is trading in the currencies of the world: the dollar and pound are the same as euro, Swiss franc, yen, or crown.

Currencies are always traded in pairs. One of the major currency pairs is the Euro / USD dollar currency pair. Investors can bet on a value of the euro against the greenback as well as to a devaluation of the single currency against the dollar. On currency markets may therefore be earned at any price movement – regardless of their direction