With the help of Internet, many have long been doing business, and even become millionaires - it is worth recalling at least holders of the search engine Yahoo! or online-shop Amazon.com. Many people prefer to make money simply by setting on your PC to view the advertising benefit of such an opportunity is provided, for example, by Alladvantage. In this article we will discuss another method of earning money through Internet - participation in the foreign currency auctions.

High-yield market exchange - is the interbank market, which was formed back in 1971, when international trade shifted from fixed exchange rates to floating ones. This rate of one currency relative to another is determined by the most obvious way - with the exchange

In terms of trading the currency market exceeds all others. For example, the daily volume of securities market of approximately 300 billion USD, while trading in the market FOREX (Foreign Exchange Market - The International Monetary Market) is estimated at several trillion dollars a day. Thanks to a truly global scale, the absolute liquidity and high profitability of this market is attracting investors from around the world. It is also worth noting that the investor is personally administered by their own means and control them.

Perhaps you will say that these operations are available only in the presence of big capital - banks and investment funds, like belonging to the notorious Mr Soros Fund "Quantum" ".

Indeed, initially the market was conceived as an interbank market, operates the largest cash lots. Transactions in the foreign exchange market is one of the main sources of income for banks worldwide. For example, 80% of the profits of the largest Swiss bank Union Bank of Switzerland (UBS) in 1994 were foreign exchange transactions with currencies, and only 20% of all profits made from the proceeds of loans, securities trading, etc. Income from foreign exchange operations in the FOREX market are paramount, and banks such as Citibank, Chase Manhatten Bank, Barclays Bank, Sosiete Generale Bank & Trust, ABN-AMRO Bank.

Name Soros, known worldwide not only to financial professionals, referred to here is not accidental. Most of the profit his fund has received and continues to receive it on the market FOREX. The classical operation of George Soros in 1992, selling the British pound (GBP) against the German mark (DM) and the U.S. dollar (USD) brought him within two weeks of a billion dollars of net profit, making Soros famous and launched his charity work. There were his and losses (remember at least August 1998 - even if Soros has lost about half to two billion U.S. dollars).

But with the acceleration of cash flows around the world, development and cheapening of information transmission, computer technologies have appeared and small wholesale operations "in this market, ie reduced the size of the lot, which can handle investor dropped the amount of bail, which attracted more market participants and, in turn, increase the liquidity of the market. In addition to high liquidity and other advantages of the FOREX market are:

- Ability to make transactions 24 hours a day, as almost any point in time somewhere in a different time zone is still a working day.

- Efficiency of committing transactions. A trader at brokerage firm requesting the current price, receives a two-sided quote (the price of purchase and sale). If the price of his suit, then the transaction is executed immediately. Usually request and conduct transactions by telephone, but many brokers give their clients the opportunity to make transactions and through the Internet, which further increases their efficiency.

- No fee for transactions. Generally speaking, when trading commodities (or their derivatives such as futures or options) the client in the transaction pays a "commission", which includes exchange fees and broker fees. But as the FOREX market is the OTC and each to himself and a trader and broker, then, of course, exchange fees, and there can not be, a brokerage company receives its income from the difference in buying and selling rates (the so-called spread). The fact is that usually the trader gets is not quite accurate quotes, which can be spread to several points in both directions.

To work in the FOREX market need to have a trading account with a brokerage company, provider of such services. Once you've made on this account the necessary collateral (margin) the trader is able to operate in trade amounts exceeding the deposit of 20-100 times (leverage, "shoulder"). This transaction can occur in any direction and with any currency pairs, which are traded on the market.

The purpose of trading in any market - to buy goods cheaper and sell dearer. Is no exception and the international currency markets, where goods are the exchange rates of different countries. Like any other commodity currencies have their price. Depending on a variety of commercial, economic and other indicators, interest rates, central bank policies, time of day, preferences and expectations of participants speculation and a host of other reasons, mutual quotes, ie, prices of currencies, are in constant motion.

Your task - to try to determine the direction of price changes and currency to buy the currency, the price of which increases, or sell the currency, the price of which falls, and then, carrying back the transaction, make a profit. Depending on the firm-intermediary through which you trade, you are given a certain software package with which you will get headlines of various banks and the world's largest stock exchanges in real time.

Before you are graphs of the current price of each of the currencies, as well as fresh economic news, which directly or indirectly affect the quotes. And finally, you have a special "commercial" account that allows you to buy and sell various currencies. However, despite the fact that your trading account are U.S. dollars, you can begin its activities with the sale of stamps or the yen, not worrying about the conversion.

Alexander Elder in his book "Trading for a Living" most accurately described the market Forex: "You can be free, to live and work anywhere in the world, be independent from the daily routine and unaccountable superiors - such is the life of a successful trader." These words may be added that can be free from negligent subordinates, and the requirement of dishonesty of partners, from frequently changing legislation, economic turmoil in the country and political instability. In addition, the business in question, is considered one of the most profitable legal work.

Margin Trading

To attract the FOREX market investors with amounts less than $ 1 million (the standard unit of trading in this market), margin trading mechanism is used.

Margin trading was first introduced for currency trading in 1986 in this case, in order to implement the deal, you need only a small percentage of the total amount of the contract, called a security deposit, or margin.

For greater clarity, here is an example. For example, in your account are U.S. $ 2000. This means that at 100:1 leverage, you can open a position in 200 thousand USD. Suppose, at 11 h in the morning the dollar against the Swiss franc was 1,4045-1,4050. Do you think that the dollar is currently undervalued and should rise and give an order to buy 100 thousand USD for this course. At 15 h the dollar is as follows: 1,4250-1,4255. You decide to close the position and sell its 100 thousand on a new course. Your income is 2000 Swiss francs, or about 1400 U.S. dollars. Is 140% of input amount.

After closing the position, money is automatically credited to your account, the dealer immediately confirm the bank account statement, which can be necessary to obtain and fax. Thus, all the operations you are only a phone call (home, office, etc.). The main difference between the FOREX trading system from other sectors of the financial market, which explains the intense interest in him is the possibility of buying and selling of foreign currencies in the absence of the full amount necessary to carry out operations.

For the transaction the customer must make the initial margin only, after which he is able to conclude the transaction, which may have 50-100 times higher than the original amount. This so-called shoulder provides a bank or other credit institution, where the client pays a guaranteed margin. For example, placing the bank or brokerage firm security deposit of 100 thousand dollars, you can handle the amount of 5-10 million dollars. Therefore, even a small (relative to the input amount) gain on the FOREX market is a very large quantity.

The reader may legitimately ask: cheese visible, but where is the trap? After all, rules of the game at first glance quite simple, and the "entrance ticket" to the world of the highly profitable market rates is quite affordable (you will need from 1000 to 3000 USD, to start the game, it all depends on brokerage), but something is not visible endless stream of new "Soros".

The answer is simple and at the same time difficult. Transactions on the FOREX market are classified as analytical business. Success in this market are making only those participants who are able on the basis of available information, different methods of analysis (fundamental, technical), or simply guided by intuition, to predict the future movement of prices. The development of this science of the future requires the trader immense intellectual effort.

Playing on FOREX without adequate training is equivalent to visiting a casino: If the skilled trader more to gain than lose, the newcomer will play in the clean water roulette, and your chances of winning are obviously slim. And yet to master the rules of the game in the currency market is possible: there are various courses of lectures, published a great number of books. In the future trading practices may be your profession, as many brokerage firms, due to the specifics of your business are interested in long-term and successful work of its clients, have a staff of highly paid analysts who rarely have to deal with their own money. Their task - to advise clients of these companies or even play on their money.

Although FOREX differs significantly from the organized stock markets, international currency markets is not a "child of chaos." There are certain factors that regulate its activity and, in fact, control the market. Fundamental economic factors, such as inflation, interest rates, unemployment, etc., actively influence exchange rates. Actions (or inaction) of the Government also significantly affect the exchange rate. Thus, demonstration of the Government of confidence in the ability to keep the exchange rate contributes to its rise. Lower interest rates stimulate demand reduction for the currency and thus lowers its value in exchange transactions. Decision Central Bank for the purchase or sale of currencies can significantly enhance or undermine its course.

Expectation of changes in economic conditions may lead to sudden and dramatic currency fluctuations. This is a key concept, because in many cases, the currency market operates is a premonition of changing economic conditions, rather than the changes themselves. Another factor affecting the market, is the work of professional currency managers, especially in the interests of powerful financial groups. Let's try to understand these subtleties. In many cases, professional managers may behave independently and consider the market as a unique tool for the solution of the problem of the changing relationship between major currencies.

However, most of them, if not all, least of all concerned with the tasks and important from the standpoint of technical analysis charts. But with the approach of the main levels of support or resistance behavior of the market becomes more technically oriented, and the reaction of a large number of traders are often predictable and similar. These market periods "concerted action" may lead to sudden and dramatic price fluctuations, because substantial amounts of capital are invested in similar positions.

Once again I want to note that FOREX is not just a financial pyramid, invented only in order to extort money from naive investors. Hundreds of thousands of people around the world for more than a year earn a living this way, but on statistics about 40% of residents of New York part-time jobs with foreign exchange trading. Moreover, FOREX can be considered as a kind of virtual casino, which you can attend without leaving home. It is hard to believe that the dry chain of numbers and fancy charts snakes can cause adrenaline rush, cause a feeling of excitement, but believe me - it is so.

Above all, do not rush - play with learning accounts, different from the real only because you does not lose a penny. Such an opportunity is given by virtually all self-respecting dealing centers. You can also visit the relevant courses or how to impose a financial-economic literature, the benefit of translated books was quite a lot, and they are not too expensive.