The Forex market trading is made by market-makers. Market-makers are large banks whose branches located throughout the world. The amount of transactions on Forex market among the market makers typically exceeds the amount of 5 million dollars , U.S., the amount of ad hoc deals of market makers with its customers also quite high. Typically, these amounts are available only to large companies.
In the 80’s medium-sized and small investors began to receive access to the market through so-called margin trading conditions, and more recently in connection with the massive development of Internet technology it has become affordable for everyone. Dealing companies provided them access to it. Dealing companies give customers a credit lever (also referred to as the “shoulder” (leverage), or lending arm). The essence of leverage is that dealing company provides customer trust credit for trade in the Forex market, and a customer makes a deposit under the loan, which is called margin. Often in the market Forex, where the volume of currency fluctuations on the day of up to 2% of the loan is given in the amount of leverage “up to 200″.This means that the client can operate in the market amount to no more than 200 times greater than its own funds. Margin itself (the amount made by the client) becomes a kind of deposit insurance broker for the company in the event that the customer will suffer losses in the market. Such a scheme of work is called margin trading.
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