FOREX (Foreign Exchange Market) - The global currency market of an exchange of certain currency of one country to currency of another country at the coordinated rate for the certain date. FOREX does not have any certain location of trade. It is a huge network where the currency dealers connected among themselves by the means of telecommunications concentrated on all World Financial Centers are working round the clock as a uniform mechanism. The basic participants of the currency market are: commercial banks, currency stock exchanges, the central banks, the firms which are carrying out the foreign trade operations, investment funds, the broker companies, private persons. The main currencies which are shared on the basic volume of all operations in the FOREX market today are: the euro (EUR), the Japanese yen (JPY), the Swiss franc (CHF) and English pound of sterling (GBP) and US dollar (USD). The daily volume of conversion operations in the world makes about 2 billion US dollars. The turnover for the London market was about 30% of, for the market of the USA - 20%, Germany - 10%. Operations with US dollar make 70 %. About 15 % of turnover at FOREX market today is on a share of electronic brokers. The day time volume of operations of the largest international banks (Deutsche Bank, Barclays Bank, Union Bank of Switzerland, City Bank, Chase Manhattan Bank, Standard Chartered Bank) reaches billions of dollars. The operations of (spot) type or current conversion operations are transactions of sale and purchase of currency. Actual execution (value) of fallowing is carried out for the second working day after the day of the conclusion of transaction. Typical volumes of transactions in interbank trade make 10 million dollars, but due to the system of margin trade. The output in the market is also accessible to the persons having small capital. The brokers, rendering services of margin trade, demand entering of the mortgaging deposit and enable the client to make operations of currency sale and purchase for the sums, of 100 times bigger than the brought deposit. The risk of losses is assigned to the client. The deposit serves as the insurance for the broker. The international currency market has deep centuries-old roots. It has originated more than thousand years B.C. when the first metal money has appeared in Egypt . Money market operations in their present understanding have started to develop in middle Ages. It has been associated with development of international trade and navigation. Italian shroffs were considered as the first speculators with foreign currency. They earned on the currency exchange of the different states. The currency exchange market has changed at the interstate attitudes development, getting more and more precise outlined. The most significant changes have been brought in the currency market development in XX century. Finding of modern features by the market began in 70th years of 20 centuries when the system of the fixed rates of one currency into another has been removed. After removal of restrictions on fluctuations of currencies the new kind of business based on profit extraction according to conditions of free system of the exchange rates changing. And change of a rate is caused by all possible market conditions and adjusted only by a supply and demand. The basic stages of the world financial market development in 30th years of XX century. World financial crisis. Economical trading contacts are broken. Times of golden coin standard have gone to the past. In the middle of 30’s London becomes the World Financial Center . Great British Pound becomes the base currency for trading operations and forming of currency reserves. And then pound had a slang name “cable” already. That was associated with the factor that transactions were conducted on the telegraph and the information was transferred by cable. In 1930 in the Swiss city named Basel the Bank of the International payments has been created. The purpose of creation was financial support of the young independent states and the states temporarily testing deficiency of the payment balance.


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