Foreign exchange (foreign exchange transaction) market-the interbank market was established in 197 1, when international trade changed from a fixed exchange rate to a floating exchange rate. From then on, the exchange rate of one currency relative to another currency is usually expressed in a display way-an exchange relationship agreed by both parties.
Extended data
In addition, compared with futures and securities markets, the foreign exchange market is a little fundamentally different from them, which is also the limitation of other markets-trading is interrupted at the end of one day and resumed the next morning. Therefore, if you trade in the Russian market and some important market-related events happen in the United States, when the market opens in the morning, it may be completely different from what you expected.
The foreign exchange market operates 24 hours a day, and foreign currency transactions will not be interrupted on weekdays within one week. In almost every time zone (London, new york, Tokyo, Hongkong, Sydney, etc.). ), some dealers are willing to quote foreign exchange.
From 197 1 until a few years ago, the real investors in this market were banks, multinational companies and large securities firms. If an independent individual wants to invest his money in this market, he should cooperate with the bank and invest about $100000 to meet the needs of obtaining a transaction of $5 million to $100000. The situation of brokers is slightly better. They can reduce the minimum deposit to $250,000.
However, the foreign exchange market has been opened to small investors. Compared with the huge amount of money required by banks and brokers before, the demand for margin has been greatly reduced, and finally many individuals can play with the "big shark". In addition, small investors can use the Internet, which used to be used only by large participants.