Our Review of Forex Killer of last week was centered around the basic principles of this industry. This week see the extension of this discussion to more advanced concepts such as systems as well as the completion of our current review of forex killer.
Well, they come in two flavors, FLEXIBLE or FIXED. In the Flexible Forex Rate System, the central bank is responsible for adjusting the exchange rate according to supply and demand.
The Fixed Forest Rate is my more rigid in that currencies are fixed to each other at a determined rate. The central bank then acts as buffer in order to maintain the market value of the currency.
In order words for each price increase of one currency, the Central Bank must sell in order to compensate for the increase. Likewise, when a currency market price decreases, then the Bank must now buy more of that currency so that the market valuation for that currency is re-established.
It is very much like a pendulum swinging from one side to another. Ideally, there should be no movement with the market value held in the middle. The Central Bank’s responsibility is then to ensure that the swinging movement is reduced and brought back to the middle by either buying or selling some of its own currency stock.
What about the money though?
Well there is lots of it involved in the Forex Market since it is the biggest financial market worldwide. If you have ever heard the expression: “He/She is rolling in it” now you know it was made as a reference to Forex traders.
In fact there is much money involved in this market that you need a number with 13 digits to represent to value of a single day’s trade. That would be a 2 with 12 tidy zeros aligned right next to it.
So if I align the numbers, 2,000.000.000.000 USD are traded worldwide every single day! Or two thousand million USD or if you’re a Forex Killer Trader, two trillion Dollars!
The Forex market is an over the counter market with no physical location, central exchange and or clearing houses. Indeed, all it is, is an electronic network of banks, corporations and individuals purchasing, “trading”, currencies from one another. Open 24 hours a day, it is uniquely suited to both end of the business spectrum, namely corporate institutions and independent or at home traders.
FX Traders (Forex traders) buy and sell to and from each other and this process is then fed into these networked computers to then be displaced on official quote screens.


