What is FOREX
(Welcome to currency trading)
Key facts about the currency market-How it works?-Who the main players are?
The foreign exchange market better known as forex is the most traded financial market in the world. Every trading day over 3.2 trillion dollars worth of currencies are traded around the globe by banks, institutes and individual investors.
The Trading Week for forex begins on Monday morning 10.00 a.m at Sydney Australia and follows the Sun Westwards as the worlds major financial capitals open and close from Tokyo to London and finally closing at 5 PM Friday evening eastern time at Newyork.
Unlike other markets you may be familiar with,there is no centralised market place for forex. Instead currencies simply traded over the counter in whatever the market is opened at that time.
This unique opportunity gives the forex traders chance to trade 24 hours a day and 5 days a week.
Traders invest currency for many reasons,some of which may already familiar with you, for example if you are vacationed overseas and exchanged money you would have sold your home country currency to purchase some of the foreign currency when you are in the home county you did the reverse, sold the foreign currency to buy your home country currency back. As exchange rate fluctuate you may have noticed the difference of the buying power of your money.
Forex traders attempt to take advantages of these fluctuations by buying or selling individual currencies to speculate the future value of one currency relative to another.
Almost everyday new economic reports and datas are released that affect the value of currency traded worldwide. A great way to familiarise yourself with currency trading is to experience it on the first hand by Forex.com practice account.
No comments:
Post a Comment