The need for Forex market

Forex is a key element in any investment activity, and this is what has contributed to the fact that the Forex market's largest financial markets, it does not compare to any of the other markets as stock and bond markets, and others.

Do not play exchange role in investment activities only, but also evident in the normal life of individuals, for example, when the need for consumer Saudi for a drug manufactured in the United States, it is buying the drug in U.S. dollars, ie, it replaces the Saudi Riyal U.S. dollar up able to buy medicine.

Also, if we found German tourists to visit the United States, it replaces the euro U.S. dollar so he can buy his needs during his trip and also American Import Company, which imports goods from Japan Vtstbdl the U.S. dollar in Japanese yen so that you can purchase.

The same relationship applies to the millions of major corporations and investment banks that deal with the Forex permanently, which is added to the Forex market luster and strength of the importance of currency and can not be dispensed or exchange processes.

And so that we can know the currency market advantage over all other markets we can put this simple comparison in mind, we ask:

Is it better for the investor to invest his money in U.S. dollar or in Google?!

Or is it better to invest his money in oil or in the Canadian dollar, which is one of the largest sources of oil and the owner of the stable economy?!

Of course, the correct choice will pour always in the interest of currencies, firms could go bankrupt or are under financial crises and collapses suddenly and many other problems, and on the other side moving goods violently, for example, move oil from about $ 150 to $ 40 per barrel within a few months, and so on unlike Forex  which is a maximum daily move in the range of 1% - 2% at the latest, and thus is more stable and secure markets.

Lesson Summary:

* The importance of investment in each Forex in the world, and the great need for the currency market.

* Investment in the Forex is stronger investment activities and safest.

* Companies can be subject to bankruptcy and financial problems and crumble easily as cause the collapse of share prices, and goods moving violently, while the Forex is moving in the range of 1% to 2% per day, and is more stable markets.