The FX market

The foreign exchange market, also known as the FX market, or FOREX, is the global market of exchanging or converting one currency for another, this conversion is accomplished by selling one currency and buying another. The relative amount of each currency in the transaction is determined by the foreign exchange rate between the two currencies (also known as the currency pair). There is no formal exchange location where FX trading occurs. They are done OTC, or over-the-counter. The transaction of exchanging a currency pair takes place directly between two counterparties via telephone or electronic data link (trading platform). The counterparties for an FX transaction may be located anywhere in the world. These exchanges take place 24 hours a day from Monday morning in Australia, through Friday afternoon in New York. The size of the market and the ability to trade it worldwide, day or night provides the facilitation and liquidity that make FOREX an excellent investment opportunity. (more…)

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Benefits of Trading Forex

The daily volume of the New York Stock Exchange is approximately US$30 billion per day. The Foreign Exchange market will trade up to US$4.5 trillion in a single day.
The most often traded or ‘liquid’ currencies are those of countries with stable governments, respected central banks. The largest activity is the spot exchange between the US dollar and four other major currencies: British Pound, Japanese Yen, Euro, dollar and the Swiss Franc. These four currencies are bought and sold against the US dollar.

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