Foreign Exchange is a currency market in which one currency is being traded with others. This activity is commonly called as Forex or FX.
Forex Exchange is the largest market and very liquid that has strong influence in the world. This is 24 hours global market, starting from Monday 9 GMT until Friday 10 GMT, there is more than $3 billion trade in just one day, made it to be more larger than any incorporation of all stock market in the world.
Forex players are central bank, corporation, individual and speculator investors, and hedge funds. They are all come from independent electronic trade platform.
Trading, or speculation, make it more liquid than daily trading. Real Trading cash flow lower than 10% of total volume. They are consist of government and corporations, converting to other foreign currency through hedges to export and oversea investment.
According to BIS (Bank International for Settlement world central bank) survey, that had been done in the last 2004, amount of forex transaction reached more than USD$1,6 Billion per day. And in 2006, amount of forex transaction reached more than USD$ 2,5 Billion per day. That is, future prospect in forex trading is very good.
Recall the highly liquidity and fast movement on the price, FOREX is the most alternative popular due to of ROI (Return On Investment) and profit that we'll get is more than average from common trading (normally average return is about 5% - 20% per month, though it could be more than 100% per month for professional trader. Because of the rapid movement, FOREX is high risk if you don't have enough experience and risk management.
Gold & Silver Overview
Gold and Silver trading is emerging from physical exchange in the last 1960. Acess trading for private investors is limited, so physical gold isn't suitable for them.
Physical Gold can also be traded in small amount, like bullion and mini-bar, but the shipping and law issue in different countries hamper the trading.
So, many banks are now providing trading of Gold, Silver, bullion, and others in non-physical commodity. Just like currency in market FX, investors might buy or sell gold against US Dollar, then buy or sell the net price difference at the last session of market. The characteristic is 1000 ounce of gold represent US Dollar 65,000.
Silver is a litte sister of Gold, cheaper than gold, its price is 10,000 ounces.
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