What is forex?
Forex refers to foreign currencies or all kinds of means of payment expressed in foreign currency for international credits and debts settlement.
According to the International Monetary Fund (IMF), forex is a kind of creditors' rights kept by currency administration authorities (central banks, monetary authorities,exchange stablization funds and Treasuries) in the forms of bank deposits, Treasury bonds, long-term or short-term government bonds to be used for international payment deficit.
Why do we invest in forex?
▪The financial market with the world's largest liquidity volume
The average daily volume of business of forex market is as high as 5,300 billions USD, which is of extremely high liquidity, and several tens of times higher than that of the stock market of any country, and the high activeness of offer-making makes it greatly potential in investment.
▪24hr non-stop trading, more flexible two-way trading
Forex is a 24hr market. The market was first opened in New Zealand, then Sydney, then Tokyo, London and New York. Investors may engage in transactions from 0:00 in Monday to 0:00 in Saturday. There are more profitable opportunities and those who work in office will never lose any opportunity to create wealth due to their work in daytime. Forex refers to buy-in of one currency and sell-out of another currency. If the investor is optimistic about the trend of a certain currency then he or she may buy it in the market; if the investor is pessimistic about the trend of a certain currency then he or she may sell it out in the market. In forex market, the opportunities of investment are more flexible and plentiful, and profitable opportunities always exist regardless of bull market or bear market.
▪The fairest and most transparent trading market in the world
Forex price is macroscopically influenced by international factors such as political, military, economic and supply & demand factors, even factors related to the interest rate set by local country's central bank, stock market, economic environment and data, policies, various political elements and major incidents, all of which are beyond the control of any individual investor or group. Forex investors come from around the world, and forex price is offered in accordance with the conditions of international monetary market and international common practices, therefore it is almost impossible for any insider trading, and the market is hard to be manipulated. Furthermore, individual price manipulation is less likely to occur due to the massive volume of business of global forex market, so investors can engage in transactions in a fair environment.
▪High capital liquidity
Forex market is one of the world's largest financial markets, of which the participants include banks, commercial institutions, central banks, investment banks, hedge funds, governments, issuers of bank notes, note-issuing banks, transnational organizations and private investors of different countries, making it a market of extremely high capital liquidity, and investors are free from bearing any investment risk arising from lack of deal-making.
▪Easy and convenient transactions
The transactions of forex are mainly about direct order-placing in online transaction platforms. ABS provides a fully functioning online transaction platform which offers forex quotations and related information, and it is easy and convenient to use. Because of the aforementioned advantages, forex market has attracted a great deal of investors.