Before digging deeper into Forex trading tips and strategies, let us have an overview of Forex. What exactly is Forex and Forex trading? How is it different from other trading methods used globally? What are the benefits associated with the same? Should you also be trading in Forex? Let us know it all in today's post.
What is Forex?
Forex stands for Foreign Exchange Market which is a globally decentralized market for trading in currencies. To put it very simply, Forex is all about money trading or say currency trading. The market facilitates buying and selling of currencies. The relative value of currencies is determined by the Forex market which is one of the largest markets in the world as far as the volume of trade is concerned. Over $4 trillion worth of transactions are carried out everyday.
How does Forex trading work?
Trading in Forex is facilitated by larger international banks, financial centers which are deeemed as the major participants in Forex. These banks and financial centers offer venue for traders to buy and sell currencies around the clock with weekends being the only exception. No trading is done on weekends.
The complete trading in Forex is managed by financial institutions operating on several levels. These financial institutions are backed up by banks which rely on smaller number of firms known as "dealers". These dealers are involved in large quantities of Foreign exchange trading. Most of these dealers are Banks including few insurance companies and other kinds of financial firms though very limited. Hundreds of millions of dollars are traded between between foreign exchange dealers.
As mentioned earlier, trading in Forex goes on continuously for 24 hours a day, five days a week. Currency trading goes on worldwide among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney.
How is Forex trading different?
The difference in Forex trading can be attributed to the uniqueness involved with the same. Below is a list of characteristics which make trading in Forex a completely different experience:
Stay tuned. Keep visiting and please feel free to leave your comments if any.
Also, feel free to contact us anytime for any type of trading services from our end. You can place your enquiry for the same by filling in your details here in this enquiry form - http://goo.gl/forms/P3m3h5OxxK
We will get back to you with all the necessary tips and advise!
What is Forex?
Forex stands for Foreign Exchange Market which is a globally decentralized market for trading in currencies. To put it very simply, Forex is all about money trading or say currency trading. The market facilitates buying and selling of currencies. The relative value of currencies is determined by the Forex market which is one of the largest markets in the world as far as the volume of trade is concerned. Over $4 trillion worth of transactions are carried out everyday.
How does Forex trading work?
Trading in Forex is facilitated by larger international banks, financial centers which are deeemed as the major participants in Forex. These banks and financial centers offer venue for traders to buy and sell currencies around the clock with weekends being the only exception. No trading is done on weekends.
The complete trading in Forex is managed by financial institutions operating on several levels. These financial institutions are backed up by banks which rely on smaller number of firms known as "dealers". These dealers are involved in large quantities of Foreign exchange trading. Most of these dealers are Banks including few insurance companies and other kinds of financial firms though very limited. Hundreds of millions of dollars are traded between between foreign exchange dealers.
As mentioned earlier, trading in Forex goes on continuously for 24 hours a day, five days a week. Currency trading goes on worldwide among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney.
How is Forex trading different?
The difference in Forex trading can be attributed to the uniqueness involved with the same. Below is a list of characteristics which make trading in Forex a completely different experience:
- The huge trading volume leading to high liquidity.
- The geographical variations.
- Round the clock trading which starts from 22:00 GMT on Sunday (Sydney) until 22:00 GMT Friday (New York).
- Difference in the exchange rates.
- Low profit margin as compared to other trading methods.
- Usage of leverage to influence profit and loss margins and with respect to account size.
Stay tuned. Keep visiting and please feel free to leave your comments if any.
Also, feel free to contact us anytime for any type of trading services from our end. You can place your enquiry for the same by filling in your details here in this enquiry form - http://goo.gl/forms/P3m3h5OxxK
We will get back to you with all the necessary tips and advise!
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