Getting Started In Forex Markets
- Forex, short for "foreign exchange," refers to the global marketplace where currencies are traded. It's the largest and most liquid financial market in the world, with an average daily trading volume exceeding $6 trillion. Forex trading involves buying one currency while simultaneously selling another currency. The currencies are quoted in pairs, such as EUR/USD (euro/US dollar) or GBP/JPY (British pound/Japanese yen). The forex market operates 24 hours a day, five days a week, across major financial centers worldwide, including London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris, and Sydney. Market participants in forex trading include central banks, commercial banks, financial institutions, corporations, hedge funds, individual traders, and investors. Forex trading offers opportunities for speculation, hedging, arbitrage, and portfolio diversification. Traders can take advantage of fluctuations in currency exchange rates to make profits by buying low and selling high or selling high and buying low, depending on their market outlook and trading strategy.
How Is Forex Different Than Other Exchanges
- If you've ever traveled overseas, you've made a forex transaction. Take a trip to France and you convert your pounds into euros. When you do this, the forex exchange rate between the two currencies—based on supply and demand—determines how many euros you get for your pounds. And the exchange rate fluctuates continuously. Because of inner and outer economic delemas.
Trading Secrets and Success
- Fortunately, some of the differences between successful traders and those who lose money are no longer a secret. Through conducting an intense study of client behaviour, the team at FXCM has identified three areas where winning traders excel. While there is no "holy grail" for profitable forex trading, establishing good habits in regards to risk vs reward, leverage and timing is a great way to enhance your performance.