Another example for an online business is forex
Forex market is the international money markets. The term Forex is derived from foreign currency exchange activities: Foreign Exchange, or FOREX, for short. Forex is one of the youngest and emerging financial markets since the 1970s. Due to the volume of a very large money market, Forex is the market's most dynamically developing.
Forex's daily trading rotations reach 4 trillion USD, that is 30 times greater than the volume of the stock market in the U.S.. Like other markets, Forex trades certain goods. In terms of financial markets, the goods consist of national foreign currency.Fundamentally, the currency exchange rate set by government institutions and commercial companies around the world who need to convert currency for trading in foreign countries. They make up 5% of the volume of general currency market rotation. The other 95% comes from speculative trading traders trying to profit from buying and selling currency at fluctuation rates. Money market feature is very important is stability.
Danger of most major financial markets comes from a sudden decline, or when the stock index collapse. However, unlike the stock market, Forex market does not go down. When stocks decline, means that a crash is coming. But should the dollar fall, this means that another currency gets stronger.
Let's look at the yen for example. Within a few months in late 1998, the price of the yen fell by 25% against the dollar. On these days, the decline in the USD measured one-tenth percent. However, the decline in the USD, as in other currencies, it can not cause the financial markets crash, and trading would continue as usual. This is the key to market stability, which also applies to business. The currency is the most liquid trading tools and secure.
Speculators have enormous interest on the currency called liquid or base. Today, more than 85% of all transactions are denominated in base currency, as follows: U.S. dollar (USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBP), Swiss Frank (CHF), Canadian dollar (CAD) and Australian Dollar (AUD).
It's important to know that currency trading is understanding the system of exchange rate notation. The system is very simple if you remember that all currency pairs are recorded in the same way. Two currency symbols found on both sides of the slash "/". Correlation of the cost of each other expresses the value of the currency pairs: EUR / USD (exchange rate Euro to U.S. dollar), GBP / USD (British pound sterling exchange rate to U.S. dollar), USD / JPY (exchange rate U.S. dollar to Japanese Yen ), and so on.