FOREX Trading in Panama
Foreign Exchange or FOREX refers to trading the world’s currency. FOREX is the largest market in the world. Daily trades account for more than 3 trillion US daily. A largely speculative activity, a low percentage of FOREX trades represent governmental and corporate currency conversion needs. Not conducted via a central exchange, FOREX runs on the interbank market with trading taking place directly between the two parties making the trade.
The main FOREX trading centers are Sydney, Tokyo, London, Frankfurt and New York. However, via phone lines or internet networks, trading takes place all over the globe. With a worldwide distribution of currencies, the FOREX market operates 24 hours a day. Currently, the FOREX market is concentrated in several major currencies. More than 85% of all transactions include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar and New Zealand Dollar. The most commonly traded currencies are those from nations with stable governments, respected central banking systems and low inflation. Currencies are traded in pairs such as Euro to Yen and vice versa.
FOREX trading is generally considered to be low risk since it’s easy to buy and sell regardless of the status of a currency’s value. The industry is open to just about anyone and presents a good opportunity for a disciplined individual who is willing to learn as much as he/she can about the market.
Most FOREX traders rely on price charts, volume charts and other mathematical stats relating to market data. This provides them with the information they need to get into or withdraw from a market. This analysis increases knowledge and minimizes emotion, making it easier to create an informed and logical trading plan.
Although FOREX trading isn’t licensed in Panama, it is possible (and becoming more common) to set up an offshore corporation in the Caribbean nation to engage in this activity. Click here for some tips on setting up a FOREX business in Panama.