Why Forex can not be regulated?
Now thanks to active advertising, very few people do not know that Forex is the most significant market of the planet and its turnover exceeds the total volume of the largest stock exchanges. In a day on this independent, decentralized and unregulated actual market, trillions of US dollars turn around!
At the same time, the courses set here during currency exchange operations determine the prices for products, gasoline, imported goods, and so on, and so on, which makes the events taking place at Forex for ordinary citizens who do not work on it.
Given the high role of Forex for each country, a large bank and a common citizen, treat this phenomenon as the currency market is very serious, but it remains completely unregulated.
And if earlier only the largest banks were its participants, then thanks to the development of the Internet, everyone rushed to work and earn money on the foreign exchange market, which made Forex regulation a very acute and urgent problem.
All trading operations made on Forex can be conditionally divided into two main types according to the goals pursued by individual participants; it is speculation with the aim of profit and the use of currencies as an economic lever. And those of the participants who are really able to influence the price, that is, the large national banks of developed countries, do not set themselves the task of increasing their capital.
Their main motivating force is the desire to provide the economy of their country with additional conditions for stimulation and prosperity. In addition, countries and major producers are forced to settle with each other in different currencies and Forex reduces such participants, allowing them to make mutual settlements at any time.
But after a short period of time, the situation has changed dramatically and the volumes of Forex have surpassed the operations with goods in tens and hundreds of times. This is due
to the fact that Forex has become available to a wide range of financial organizations, commercial banks, and then ordinary citizens. All these small participants set themselves only one goal to earn! As a consequence, they conclude a vast number of frankly speculative transactions in total and almost every second.