How does the foreign exchange market

The main volume of currency transactions in the forex market is carried out to ensure that international trade, investment and implementation of the speculation. Speculations are made by traders for profit. Currency markets are functioning in different parts of the world and time zones, allowing a profit in the forex market all day.
Every second of the FOREX are hundreds of deals for buying and selling currencies and each seller can always find a buyer. Currencies that are involved in the transaction, usually identified by three-letter code, which is used in the payment system SWIFT, for example:

    USD - U.S. Dollar
    RUR - Russian ruble
    JPY - Japanese Yen
    GBP - Pound Sterling
    EUR - Euro
    CHF - Swiss Franc
    CAD - Canadian Dollar
    AUD - Australian Dollar
Exchange or the exchange rate
Exchange rate - the proportion is, as the proportions in which the currency of one country is exchanged for currency of another country. This relationship is constantly changing depending on the time and place of transaction, which allows investors to profit from the constant operations in the forex market. There are many currency U.S. dollar. The value of the exchange rate of a currency is also called quotation. Each quotation includes two currencies - the base and quote currency. The base currency is usually indicated in the first exchange tool, and the quote currency - the second. Currency quotes, in fact, is the price of the base currency and the base currency in this respect, the function of the goods.
For example, in the currency pair USD / CHF U.S. Dollar is the base currency and the Swiss franc - the quote currency. In other words, the dollar sold for Swiss francs.
Quotes can be direct and reverse:
Straight (European) quotation - When a fixed amount of foreign currency is quoted against a variable number of the national currency. Examples: USD / CHF, USD / JPY, USD / CAD.
Contact (U.S.) quotation - a fixed amount of local currency is quoted against the variable amount of foreign currency. Examples: AUD / USD, GBP / USD, EUR / USD.
The market price of the currency is determined by the interaction of buyers and sellers in the forex market.
Currency market participants are heterogeneous in their composition group. Some buyers or sellers may be part of "commodity" market, making international transactions for buying and selling goods. Some may engage in "direct" investment in plant and equipment, or "portfolio" investment, trading with foreign partners in stocks, bonds and other financial assets, other - to work for "cash" market, engaging in international trade short-term debt instruments. Various investors, hedgers and speculators can appear on the market at any time, from minutes to years. But, regardless of ownership - public or private, motives for action - investment, hedging, speculation, arbitrage, pay for imports, they are part of aggregate demand and supply of certain currencies, and in the process of interaction, they all have an impact on the exchange rate, making it all the time change, which, in turn, allows investors to extract a good profit.
An important feature of the modern foreign exchange market Forex is the fact that the profit in this market may be individuals who possess even a small savings. Enough to have a few thousand rubles to the company by Kalita-Finance to be able to benefit from trading in the forex market. Log in to the forex market with a small deposit is possible due to the presence of financial leverage, which increases the purchasing power of investors many times over. To trade in the forex market without leaving home or combining with the main job. Enough to have a computer, PDA, smartphone, with a program iTrader8 and Internet access.