Last week our review of Forex Killer was based on the basic principles that govern this exciting industry. This week we will extend our discussion to Forex Systems and various other aspects of the Forex Killer industry as well a continued review of Forex Killer!

Well, they come in two flavors, FLEXIBLE or FIXED. In the Flexible Forex Rate System, the central bank is responsible for adjusting the exchange rate according to supply and demand.

The Fixed Forest Rate is my more rigid in that currencies are fixed to each other at a determined rate. The central bank then acts as buffer in order to maintain the market value of the currency.

So if the price of foreign currency increases, the Central Bank must sell that currency in order to avoid any price increase. Conversely, in the even that there is a decrease in the market currency value so will the Central Bank need to purchase additional currency in order to maintain a stable market price.

It is very much like a pendulum swinging from one side to another. Ideally, there should be no movement with the market value held in the middle. The Central Bank’s responsibility is then to ensure that the swinging movement is reduced and brought back to the middle by either buying or selling some of its own currency stock.

It’s all about pennies!

Well there is lots of it involved in the Forex Market since it is the biggest financial market worldwide. If you have ever heard the expression: “He/She is rolling in it” now you know it was made as a reference to Forex traders.

It is a market so large that you would need 12 zeros after the digit 2 to get an idea of how large it is and that’s just the figure for a single daily turnover.

For a Forex Killer Trader, that is “just” 2 trillion USD. My wife likes to repeat aloud two thousand million dollars, punctuating between each word as she hands me my lunch sandwich every day on my way to work and as for, 2,000.000.000.000 is enough to make me dizzy!

The Forex market is an over the counter market with no physical location, central exchange and or clearing houses. Indeed, all it is, is an electronic network of banks, corporations and individuals purchasing, “trading”, currencies from one another. Open 24 hours a day, it is uniquely suited to both end of the business spectrum, namely corporate institutions and independent or at home traders.

Forex Traders or FX Traders as they are also known are in the business of buying and selling currencies from each other. The results of these transactions are then fed into these networked computers in order to be displayed on official quote screens.

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This entry was posted on Friday, June 13th, 2008 at 11:19 am and is filed under Forex. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.