''WHAT IS FOREX ?'' ^.^

FOREX is the largest inter bank financial institution in the world that opens its doors to retail investors, forex was established in 1971 following the end of the Bretton Wood system of foreign exchange control and soon thereafter, the materialization of floating exchange rates. FOREX is the only financial market that operates on a 24-hour basis on Asian, European and American markets by virtue of their association in one global communication network. 24-hour access to the foreign exchange market allows investors to open and close positions at the most whenever they choose for the best possible advantage, and for the best deal.

Increasingly, individuals are affording themselves every opportunity to achieve financial gains. Currency, because of its minute by minute fluctuations in value is traded on the foreign exchange market. Banks and brokers grant investors an opportunity to participate in currency exchange operations, the returns of which regularly exceed the amounts invested. Investors may partake of this market with as little as $1000.

FOREX trades over one trillion dollars daily and makes currency purchase-sale contracts on terms from 1 day to one year in this round-the-clock, very liquid market. The largest foreign exchange activity occurs on the spot exchange between the US dollar and four other major currencies: the British Pound, the Japanese Yen, the Eurodollar and the Swiss Franc. These four currencies are bought and sold against the US dollar. The participants of the market are banks, brokers’ offices, corporations, export-import companies, various Fund providers, and individual investors.

Trading on the foreign exchange market is the single most effective source of income for banks worldwide. For instance, 80% of the revenues of the largest Swiss bank, “Union Bank of Switzerland” (UBS), were derived from convertible operations with currency, wherein only 20% of revenue profited from credits, securities selling, etc. (see financial report in “UBS Annual Report of 1994). Profit from foreign exchange operations are in much favor at banks such as Citibank, Chase Manhattan Bank, Barclays Bank, Sosiete Generale Bank & Trust, ABN-AMRO Bank.

A well known example of such transactions involves George Soros, who in 1992 realized a net profit of one million dollars within 2 weeks selling the British Pound (GBP) against the German Mark (DM) and the American Dollar (USD).

In order for banks to survive in highly competitive circumstances among bank operations, currency trading will be forcibly included into essential basis of bank operations by laws of market economy development.