-
Essay / The three functions of FOREX as a foreign exchange market
The main importance is to participate in speculative activity in order to generate future profits. For this purpose, individual operators use investment analysis tools or the services of an investment company are purchased in order to manage capital on behalf of investors. A successful trader is one who has the ability to analyze the volatility of the forex markets to forecast patterns taking into account historical data and its trends or trends. Forecasting can never be completely accurate because it includes uncertainty. This uncertainty always carries some kind of intrinsic risk. However, various tools are regularly developed in order to predict the future evolution of certain specific behaviors on the FOREX market. Volatility concerns transaction risk which is often intrinsic to the foreign exchange market. This volatility makes forecasting a tedious task for financial specialists and investors analyzing future trends. The FOREX market is constantly influenced by many variables. Likewise, mainstream media releases regarding the good performance of the economy or conflicts in remote areas can have a significant impact on FOREX market behavior. Therefore, individual traders and institutional investors are extremely cautious when investing in FOREX.