the size of forex market

The following facts and figures relate to the foreign exchange market. Much of the information is drawn from the 2010 Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2010. 53 central banks and monetary authorities participated in the survey, collecting information from 1,309 market participants.

One of the largest financial markets in the world

$4.0 trillion average daily turnover, equivalent to:

• More than 12 times the average daily turnover of global equity markets
• More than 50 times the average daily turnover of the NYSE
• More than $500 a day for every man, woman, and child on earth
• An annual turnover more than 10 times world GDP

The foreign exchange market is the most liquid financial market in the world. Traders include large banks, central banks, institutional investors, currency speculators, corporations, governments, other financial institutions, and retail investors. The average daily turnover in the global foreign exchange and related markets is continuously growing. According to the 2010 Triennial Central Bank Survey, coordinated by the Bank for International Settlements, average daily turnover was US$3.98 trillion in April 2010 (vs $1.7 trillion in 1998). Of this $3.98 trillion, $1.5 trillion was spot transactions and $2.5 trillion was traded in outright forwards, swaps and other derivatives.

Most developed countries permit the trading of derivative products (like futures and options on futures) on their exchanges. All these developed countries already have fully convertible capital accounts. Some governments of emerging economies do not allow foreign exchange derivative products on their exchanges because they have capital controls. The use of derivatives is growing in many emerging economies. Countries such as Korea, South Africa, and India have established currency futures exchanges, despite having some capital controls.

the Forex Scams

Forex Scam or forex fraud is a growing big problem. Anyone can be forex freaud, maybe someone your know or someone you never met before. Scammers gives you some idea to make your move with your money. Some scammers makes you take too much risk on forex market. Some scammers seems like real bir company, in reality they are not.

If you are new in forex market, be careful about that scammers. New starters always easy fish at this market. If you meet with scammer they can easily understand you are new.

Forex scams can take many forms. Some scams can be compelling or seem to be very legitimate. They take advantage of traders seeking the magic answer to winning in the forex markets. Unfortunately, there are no easy answers. Here is a quick list of some popular general forex scams.

1. Signal SellersIt seems like a new company springs up every day that has the signal service to beat all signal services. They profess to be able to sell you information on which trades you should make. These signal sellers usually charge a daily/weekly/monthly fee for their service and usually do not offer anything that will help improve your trading. There is no such thing as having a magic key to the market and if there was, why would you sell it?


2. Magic Way: If someone or some company tells that "We have a magic system to make you rich in forex market" .
Tell this : "wait a minute if you have that kind of easy magic method you use it and be rich yourself. don try to take my money." there is no guarantee and there is no easy way at any market. There are just scammers and victims exists.



3. Phony Investment FundsIn the past few years, funds called HYIP(High Yield Investment Program) have popped up all over the place. Most of these(if not all) are scams. They promise you a high level of return for temporary use of your money in their forex fund. It is a type of Ponzi scheme where the investors of yesterday get paid back by the investors of tomorrow. Once the fund runs out of prospects, they usually close down and take whatever money they had with them.


4. Investment Funds:
Some companies takes extra money for investment program. There is no such thing. They can request money for education or something else, they can give you lessons, this is acceptable. But if some company wants investment money and takes back nothing, they are liar. Name can change(investment, preparation) Don`t give you hard earned money to any company which is scammer.



5. Miracle SoftwareThere is no software that will figure out the forex market for you. However, a quick google search will turn up plenty of software sellers that say otherwise. Some companies out there are selling their special “packages” for upwards of $5,000 and many times it turns out to be something that you can find on the internet for free. It is generally not advisable to buy any type of forex software that will tell you which trades to make.
another meaning :
There is no software that will guess tomorrow market. Noone can read news of tomorrow. (except politicians, they can start war, they can end war). If someone have good software to earn guaranteed money they can use for themselves. If someone try to sell you some good software which is guaranteed to earn at forex market (They are liar). Some softwares can makes your job easies that is all.

references and sources :

whatisforex.org

what is the forex

its called  (foreign exchange) and the foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into euros. The same goes for traveling. A French tourist in Egypt can't pay in euros to see the pyramids because it's not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate.

The foreign exchange market assists international trade and investment by enabling currency conversion. For example, it permits a business in the United States to import goods from the European Union member states especially Euro zone members and pay Euros, even though its income is in United States dollars. It also supports direct speculation in the value of currencies, and the carry trade, speculation on the change in interest rates in two currencies.

The foreign exchange market is unique because of

1. its huge trading volume representing the largest asset class in the world leading to high liquidity;
2. its geographical dispersion;
3. its continuous operation: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
4. the variety of factors that affect exchange rates;
5. the low margins of relative profit compared with other markets of fixed income; and
6. the use of leverage to enhance profit and loss margins and with respect to account size.

references and sources :

wikipedia.org

investopedia.com