Introduction to the Forex Market

| September 13, 2014 | 0 Comments

Learn about the all basic concepts of Forex Trading, What is Forex? A simple and complete guidance for students about Forex Trading.

Introduction to the Forex Market

What is Forex?

Currency is a very important tool for people around the world, so Forex is all about the money or currency. In simple words “Forex” stands for “Foreign Exchange” people also known it as “FX“. The function of Foreign Trade Market is traded between currencies. In Forex Trading you purchase one currency and sell another.

Who trades currencies?

Foreign Trade (5 %):

In Forex companies purchase and sale goods from foreign countries and they also deal with foreign sales and convert their profits into their domestic currency.

Speculation for profit (95%):

In Forex while exchanging money most traders always looks for the biggest liquid currency exchange pairs. The major includes:

  • Us Dollar
  • Euro
  • Canadian Dollar
  • Australian Dollar
  • Japanese Yen
  • British Pound
  • Swiss Franc

These are some most common currencies which mostly paired, with report at least 85 % of the daily basis Forex Trading is done in these major currencies.

Why trade Forex?

According to different analyzers report Stock Market have the daily turn over near about U.S. 2, 000 billion per day, but the Forex Market traded average excess between U.S. 4.9 Trillion per day.

Forex is a true 24-hour market which starts from Sydney at Sunday 5 PM ET to Friday 5 PM ET and moves to the world according to every countries business working day.

 

 

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