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).
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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…
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.
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),…
WHO ARE THE PARTICIPANTS IN THE FOREX MARKET?
ByadminThe 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…
WHAT MAKES THE FOREX MARKET MOVE?
ByadminWorld currencies are exchanged in large because of international trade. For instance, consumers of one country purchase goods of another country. Also, when large companies do business with other global companies. Global investments and monetary diversification are additional reasons that make the FOREX market move.
WHAT IS A PIP?
ByadminPIP 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…