Money is a crucial factor for anyone under the sky. Money makes everything possible. People work every day only to earn money. They are ready to even leave their parents and family to work at different countries to earn money and settle. Some people get daily wages, and some get a weekly pay, a monthly pay or annual pay. It depends on the job one is doing. Money is very important from kindergarten schooling to death. Everything under the sky needs money. Be it studies, food, shelter, travel, work, entertainment, birth, death, clothes etc. It has come to a stage where people cannot live a normal life in the earth without money. Money has made its mark since the eighteenth century. Earlier, money was not that important. People trusted people. They exchanged goods for goods and supplies. Those who had rice in excess exchanged it for sugar which they had less or did not have and those who had wheat in excess exchanged it for spices which they had in less quantities. Money did not play a part in merchandising and supplies until it was discovered later.
When money became important people started to hide their excess supplies. They sold it for unaffordable prices during food shortage to gain profit. This way the importance of money was increased by human beings. But money is not the only used for general purposes but today it is also used to bribe people to get their work done. Bribing is one prominent case that is followed by many common people. To get their work done faster, people have started to bribe the authorities. And for the sake of money, authorities also get money and finish the work for them. This way both are benefited. But as per the law and the Indian government, bribing is against the law. People do not follow this as there are no strict rules which insist on this. It is the government employees that get money for the work they do, so people no matter what, still bribe them to finish their work. For example: Bribing happens in government offices to get passport, pan or Aadhar card faster. Driving license is issued even without the driving test. These are the examples of the power of money today which people do not understand. The respect is for the money that they give and not the person. Some people move to different countries leaving their family to earn money. They try to covert the money and transfer the money in Indian rupees to benefit their family. This converting is what is called forex. The foreign exchange market is shortly named as Forex.
Foreign exchange Market
Foreign exchange market is a global decentralized or over the counter marketing for money and for trading of currencies. This market determines the rate for foreign exchange. It includes all aspects of buying, selling, marketing, exchanging currencies etc., at affordable prices. It is by far the largest market in the world. The main participants that constitute the foreign exchange market are the large international banks. They form a network thus fixing the prices for every currency that is sold or bought. These banks act as centers or anchors of trading between the sellers and buyers around the clock, except for weekends. They set values for the currency. They do not set the absolute value but rather determine its relative value by setting the market price of one currency if paid for with another. For example: 1 USD is worth 1 JPY. The International banks, which form the pillars of foreign exchange market work through several levels. The banks turn into smaller levels of units called the dealers who involve a lot in trading foreign currencies. The dealers most of them are bank it, which work with many other dealers. They set the basic platform wherein foreign currencies are weighed and prices are determined. Because of these reasons, they are also called as interbank market. Trades between foreign exchange dealers can be as large as hundreds of millions of dollars. The Forex by dealers also involves currency conversion. In a typical forex market, a party purchases one quantity of currency by paying with one quantity of another currency.
What makes forex unique
It has a large geographical dispersion which makes it unique and popular. It has high liquidity due to its huge trading volume, representing the largest asset class. It is open 24 hours a day except weekends and there are varieties of factors that affect forex market. It has low margins of relative profit compared with other markets of fixed income. Forex auto trading is another word for automated forex trading. Here in this case, trades are executed by computer operated systems based on a trading strategy or procedure that is already coded. It is more like an algorithm. This algorithm has a set of criteria, programmed directly into the systems. This can also be made manually by combining the criteria without having to be programmed. These set of codes and criteria used in automated forex trading follow a technical analysis. The origin of forex auto trading started in 1999 when internet took over the world. This was when internet trading companies created retail forex markets for users to buy and sell currencies. There are two types of Forex auto trading available.
One that involves a completely automated trading system will run on specific algorithms. In this case the creator has already decided on criteria like the timing, price and quantity so that the users can only interfere with the parameters like stop losses, risk parameters etc. All other control is handled by the program itself. Another type is the signal based forex generator. This involves manually entering the orders with respect to price and time. The main advantage of forex auto trading is that it can trade more trades per market than a human trader can handle. It can also replicate its actions across multiple markets and time frames. The only disadvantage of forex markets is that the unregulated market is extremely attracted to many forex scams. Boards such as US Securities and Exchange Commission have issued warnings and rules to avoid fraudulent forex trading behavior.