Structure of the Forex Market

The forex is unique among financial markets in a number of ways. One of these is that it was not traditionally used as an investment vehicle. It had, and still maintains to some extent, a somewhat more utilitarian purpose. In today’s globalized economy, most businesses have some international exposure, creating the need to exchange one currency for another in order to complete transactions.

For example, Honda builds its cars in Japan and exports them to the United States, where an eager American buyer exchanges his dollars for a brand new Honda. Some of this money has to make its way back to Japan to pay the factory workers that built the car, but first those dollars have to be exchanged for Japanese yen, since that is the currency the Japanese factory workers are paid in. Transactions such as this are facilitated by international banks and are done through a mechanism known as the foreign exchange market, or forex. Since banks are used to facilitate these cross-border transactions, they naturally want to be paid for their services. This payment comes in the form of a bid/ask spread – offering to buy the desired currency at a slightly lower price than they are willing to sell it at, and pocketing the difference. Considering the fact that more than $3bn moves through the forex market daily, these seemingly small fees can add up to a significant sum.

FOREX TRADING IN NIGERIA
In the past, forex trading in Nigeria was for the big boys with millions of Naira as start – up funds. Banks, oil companies and big businesses were primary investors then. Well times have
changed, now you too can get involved. Infact you can now start forex trading with about $100 – $300 though $100 is bad idea but the proposal is that any regular Nigerian can become a forex trader.

To start Forex trading in Nigeria, there are some factors you must put into consideration. They are listed below:
Technical Know How: Forex is an online currency exchange trade which involves a simultaneous buying and selling of currencies .Making profit or loss in forex trading is usually determined by the economic state of more than one country. As the economy of different nations is not static in relation to one another, the forex market is never fixed or stagnant at any point in time.

Therefore to understand the market, you must undergo training! You must acquire the technical knowledge required in buying and selling currencies. You must sit down and study this ever changing price market over a period of time and be up to date on local and foreign news as global trends have a tendency to push up or pull down prices. WOULD YOU LIKE TO BE TRAINED PROFESSIONALLY AS A FOREX TRADER? BLACKWELL OFFERS FREE TRAINING Visit http://eepurl.com/bP3Grv OR CALL 07030668912. BECOME A MORE SUCCESSFUL INVESTOR. GET INVOLVED IN THE LARGEST FINANCIAL MARKET.