FOREX trading is not centralized on an exchange, as with the stock and futures markets. The Forex market is considered an Over the Counter (OTC) or “Interbank” market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.
Similar Posts
WHAT DOES IT MEAN TO HAVE A “LONG” OR “SHORT” POSITION?
ByadminIn 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….
WHAT IS THE FOREIGN EXCHANGE (FOREX) MARKET?
ByadminThe 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…
HOW IS VALUE OF A PIP CALCULATED…FIXED OR FLOATING?
ByadminThere are fixed and floating values for a pip depending upon the currency pair. When the USD is on the right side of the pair (EUR/USD, GBP/USD, AUD/USD, and NZD/USD) the pip is value is fixed at $1.00 per 10,000 currency units. This is a fixed pip value. When the USD is on the left…
HOW DOES THE FOREX MARKET DIFFER FROM THE STOCK MARKET?
ByadminThe FOREX is one of the fastest growing markets in the world because it offers the average investor leverage* unlike most any market, up to 50:1. Since the FOREX is traded globally through a network of banks and financial institutions 24-hours a day from Sunday at 5pm (Eastern Time) through Friday at 4pm (Eastern Time),…
WHAT ARE THE MOST COMMONLY TRADED CURRENCIES IN THE FOREX MARKETS?
ByadminThe most often traded or ‘liquid’ currencies are those of countries with stable governments, respected central banks, and low inflation. A large number of Foreign Exchange daily transactions involve trading the major currencies, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and the Australian Dollar.
WHEN IS THE BEST TIME TO TRADE THE FOREX MARKET?
ByadminIn our opinion, generally when a country’s banks and equity markets (stock, commodities, bond, etc.) are open. For instance, trading the Euro may be best from 1 a.m. Eastern Time through 9a.m. Eastern Time.