As the global economic crisis has affected the work of the Forex market?


Economic collapse, the destruction of the financial system, the collapse of the world economy, taking place over the past year in the world is affected all spheres of human activity. About the causes of the crisis has been said incredibly much, but for us the most important of its consequences.

First of all, the economic crisis has manifested itself in inflation, the rapid increase in unemployment, catastrophic speed reduction in wages (about half), lower stock prices, falling demand and, consequently, a decrease in raw material prices (almost 4 times). The latter factor could not be strongly affected by the health of our Russian economy.

Against this background, the financial markets in particular, and the forex market, are experiencing difficult times. Although, if you take into account that in the Forex currency trading, which is always and everywhere a go, no matter what, but, nevertheless, the current crisis has affected the Forex market with two sides: positive and negative.

Let's start with the negative side of the Forex market. The main feature of which is shown in the fact that the events on the trading floors are developing so rapidly and quickly, that not all traders are able to work in such a crazy, intense pace. Why is that? First of all, the news policy of many countries: presidents, prime ministers, finance ministers, and then stunned the audience with loud statements on the price forecasts, economic policy-making, etc. And we know that the slightest statement, even if not always persuasive can affect the exchange rate difference currency pairs. Hence, their movement is very difficult to predict.

In this situation, the right decision, without risking their capital, is quite difficult. Many beginners and experienced traders do not handle this volume of information and lost. In such a difficult time to mobilize, for winning the most savvy. Last able to adjust to such a rhythm, continued a successful and profitable game in Forex.

How is the current crisis could have a positive impact on the Forex, you ask? Although the participants of the Forex market, and it is the central banks, commercial banks, investment banks, brokers and dealers, pension funds, insurance companies, multinational corporations are in a difficult situation on the stock market in general there is a prolonged fall. The forex market continues to operate, and it is stable and lucrative. Traders trade, and sell well and good. This is due to the fact that in the difficult conditions of the financial market in the fall of one currency is on the rise of another currency. In some cases, the quotes are changed quite natural projections. Although there are exceptions. Currency is a commodity that is always needed and everywhere!

Thus, from the above written, we can conclude that the global financial crisis, the Forex market has not only hurt, but also benefited. In these difficult financial climate controls these processes were effective and more efficient, as evidenced by the return of participants of the Forex market. I myself know some traders who receive a few thousand dollars a week! It is in the forex market, some people see a way out of the crisis. The only thing that all market participants are able to adapt to new conditions in the market, which has managed to stay afloat.