The need for currency market naeed

The need for currency market

Currency is a key element in any investment activity, and this is contributed to making the currency market the largest financial market, where it does not compare to any of the other markets as markets stocks and bonds and others.

Currency exchange does not play a role in investment activities only, but also has an active role in the natural life of individuals, for example, when the need for consumer Saudi drug manufactured in the United States, it is the purchase of this drug in US dollars, that is, it replaces the Saudi Riyal US dollar to be able to buy the drug.

Also, if we found a German tourist visiting the United States, it replaces the euro US dollar can even buy their needs during the trip and also the American import company, which imports goods from Japan Vtstbdl US Dollar Japanese Yen so you can purchase.

And apply the same relationship to the millions of major companies and investment banks that deal with the currency permanently, which is added to the currency market luster and strength of the importance of currency and can not be dispensed or exchange operations.

And so we can see the currency market advantage over anything else from the market can keep this simple comparison in mind, we ask:

Is it better for the investor to invest his money in the US dollar or the Google company ?!

Or is it better to invest his money in oil or in the Canadian dollar, which is one of the largest sources of oil, and the owner of the stable economy ?!

Of course the right choice always is in the best currency interest, firms could go bankrupt or are exposed to financial crises and collapses suddenly and many other problems, and on the other side goods moving violently, for example, oil moved from about $ 150 to $ 40 a barrel within a few months, and so on Unlike currencies which is the maximum daily move in within 1% - 2% at the latest, and thus is more stable and secure markets.

Lesson Summary:

Importance of currencies in all investments in the world, and the need for large currency market.

Investment in the currency is stronger investment activities and most secure.

Companies may be exposed to bankruptcy and financial problems and crumble easily, causing the collapse of stock prices, and goods moving violently, while the currencies move in the range of 1% to 2% per day, and is more stable markets.