The Foreign Exchange market, also referred to as the spot “FOREX” market, is the largest financial market in the world, with a daily average turnover of approximately $1.5 trillion USD. Foreign Exchange is the simultaneous buying of one currency and selling of another. Most FOREX trading consists of trades between the U.S. dollar and six major world currencies…Australian Dollar (AUD), Great British Pound (GBP), Canadian Dollar (CAD), Japanese Yen (JPY), and Swiss Franc (CHF).
Similar Posts
WHAT IS A PIP?
Byadmin
PIP is an acronym for Price Interest Point. It is the smallest unit of a currency. It is the farthest digit to the right of a currency pair. Suppose the EUR/USD moves from 1.1400 to 1.1401, then it moved 1 pip which is equal to 0.0001. With currency pairs related to the Japanese Yen, a…
WHAT IS THE PROCESS IN WHICH YOU EXECUTE TRADES?
Byadmin
The majority of all Forex trades are made over electronic trading platforms connected to the Internet. Typically, a trader Installs and opens a trading platform on a computer. Then, the trader creates an opening transaction, which is an order to establish either a buy (Long) or sell (Short) position. As a general rule, a trade…
WHO ARE THE PARTICIPANTS IN THE FOREX MARKET?
Byadmin
The FOREX market is called an “Interbank” market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options…
WHEN IS THE FOREX MARKET OPEN FOR TRADING?
Byadmin
In a 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they…
WHAT DOES IT MEAN TO HAVE A “LONG” OR “SHORT” POSITION?
Byadmin
In trading, a long position is one in which a trader buys a currency at one price and aims to sell it later at a higher price. In this scenario, the trader benefits from a rising market. A short position is one in which the trader sells a currency in anticipation that it will depreciate….
WHO REGULATES THE FOREX MARKET IN THE U.S.?
Byadmin
The Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) monitor FOREX trading in the U.S. and provide a high degree of requirements and regulation of U.S. brokers.