The definition of Foreign Exchange
Forex refers to the OTC market while buying a currency and selling another currency. The currencies utilized in the OTC markets trading units are issued by the national government or central bank. The money value of a unit is used as a measure of the transaction
How does the Forex market work
Unlike most financial markets, the forex market is different, within the foreign exchange market, there is no physically specific place to trade. The entire foreign exchange market operates through the use of electronic banking network infrastructure, various financial institutions and the electronic transactions between individuals. Moving accord to the time difference, foreign exchange transactions per day originate from Sydney and then move to Tokyo, London and New York.
Pricing in Forex Market
Foreign exchange markets and prices are mainly affected and influenced by the flow of various trading and investment between various countries. To a certain extent, the exchange price is also affected by various national economies and their economic policies, factors such as interest rate adjustments, inflation, political instability have a direct correlation to Foreign exchange rates (these factors also seriously affect the stock and bond markets).
What makes Forex so appealing
Changes in economic climate and policies generally only produce a short-term impact on the exchange, so when these mitigating factors eventually lead on to the stock and bond markets they adversely trend. While the foreign exchange market can provide to investors more choice and opportunities.
Buying, selling, and spreads
The forex market sets the initial price or quote, And the other financial markets make the same as the purchase price included and selling prices. Suppose the dollar / yen trading price (bid / ask) is at a rate 117.33 / 117.36, if you were to believe that the dollar will weaken, you could press at the 117.33 price to sell the currency pair.
Currency quotes are usually composed of four decimal places, for example if the EUR / USD quotes are 1.2400 / 1.2403, the last number is the decimal point. Most currencies are 0.0001 point. For the yen it is 0.01.
For how a trader makes predictions the currency markets, traders are usually divided into two camps. Technical traders will make use of various analytical methods such as charts, trend lines, support / resistance levels, and mathematical models to identify opportunities while attempting to make trading decisions. Another type of trader tends to rely on fundamental analysis and various economic indicators towards the reaction of a specific currencies national economy and will incorporate the analysis of market drivers, such as GDP growth, inflation, interest rates and so on.
24 hour market, the most liquid market, very LOW transaction costs
We do offer our clients direct access to Tier 1 liquidity from all major money centre banks. Gain instant, low-cost Straight-Through Processing (STP) of your orders at razor-thin spreads, as well as powerful trading features unmatched by any other Forex platform on the market. Get real-time executable streaming quotes from more than 50 liquidity providers for over 80 global currency pairs and metal products.
Forex trading through the use of leverage. This is one of the most efficient ways to trade, leverage means buying on margin trading in currencies, in order to increase the value of the rate of return, without having to increase the initial investment. The amount represented by multiple nominal amount of the transaction is greater than the margin exchanges needed. The initial amount is represented by multiples, the nominal amount of the transaction is greater than the margin exchanges needed. For example, if the notional amount of the transaction is $ 100,000, and the required margin is $ 2,000, the trader can take 50 times leverage ($ 100,000 / $ 2,000).
Of course, as the potential for profit is increased the corresponding potential for losses increases alongside it, The use of a high leverage trade comes with it a high level of risk, because you may have the potential to lose the entire investment. You must realize that leveraged Forex trading comes with considerable risk and may not be suitable for everyone. If the market trend is against your perspective choices, your potential losses may exceed your original investment. We offer a range of trading tools to help you manage your trading risks.
Long or short calls
Different from traditional securities markets, foreign exchange trading allows your to benefit from both the rise or fall in the perspective currency that you are trading. As a Forex trader, when you expect the value of a perspective currency would gain in value compared/against the first currency you are trading, you may purchase more of the currency pair, your profits will rise as the perspective exchange rates rise. In the event you expect that the initial currency within the pair is more vulnerable than the second currency, you can go short (sell) the currency pair, and your profits will rise along with exchange prices.
Market trading volume in favour of price stability
The average daily trading volume of the foreign exchange market is more than $ 5-7 trillion, it is the worlds most traded market.
At Broker, you have the option to trade many of the Major, Minor and Exotic currency pairs with tight spreads and clear-cut execution. The market is open for trading 24 hours a day from Sunday 5pm EST to Friday 5pm EST and the following tables are the pairs we offer:
|INSTRUMENT||TRADING HOURS (GMT)|
|GBPUSD||Sunday 21:00 - Friday 21:00|
|USDCHF||Sunday 21:00 - Friday 21:00|
|EURUSD||Sunday 21:00 - Friday 21:00|
|USDJPY||Sunday 21:00 - Friday 21:00|
|USDCAD||Sunday 21:00 - Friday 21:00|
|NZDUSD||Sunday 21:00 - Friday 21:00|
|AUDUSD||Sunday 21:00 - Friday 21:00|
|AUDNZD||Sunday 21:00 - Friday 21:00|
|AUDCAD||Sunday 21:00 - Friday 21:00|
|AUDCHF||Sunday 21:00 - Friday 21:00|
|AUDJPY||Sunday 21:00 - Friday 21:00|
|CHFJPY||Sunday 21:00 - Friday 21:00|
|EURGBP||Sunday 21:00 - Friday 21:00|
|EURAUD||Sunday 21:00 - Friday 21:00|
|EURCHF||Sunday 21:00 - Friday 21:00|
|EURJPY||Sunday 21:00 - Friday 21:00|
|EURNZD||Sunday 21:00 - Friday 21:00|
|EURCAD||Sunday 21:00 - Friday 21:00|
|GBPCHF||Sunday 21:00 - Friday 21:00|
|GBPAUD||Sunday 21:00 - Friday 21:00|
|NZDCAD||Sunday 21:00 - Friday 21:00|
|GBPCAD||Sunday 21:00 - Friday 21:00|
|GBPJPY||Sunday 21:00 - Friday 21:00|
|CADCHF||Sunday 21:00 - Friday 21:00|
|CADJPY||Sunday 21:00 - Friday 21:00|
|NZDJPY||Sunday 21:00 - Friday 21:00|
|NZDCHF||Sunday 21:00 - Friday 21:00|
|GBPNZD||Sunday 21:00 - Friday 21:00|
|USDSGD||Sunday 21:00 - Friday 21:00|
|USDTRY||Sunday 21:00 - Friday 21:00|
|EURSEK||Sunday 21:00 - Friday 21:00|
|EURTRY||Sunday 21:00 - Friday 21:00|
|GBPTRY||Sunday 21:00 - Friday 21:00|
|GBPZAR||Sunday 21:00 - Friday 21:00|
|USDCZK||Sunday 21:00 - Friday 21:00|
|USDDKK||Sunday 21:00 - Friday 21:00|
|USDHUF||Sunday 21:00 - Friday 21:00|
|USDMXN||Sunday 21:00 - Friday 21:00|
|EURNOK||Sunday 21:00 - Friday 21:00|
|USDNOK||Sunday 21:00 - Friday 21:00|
|USDSEK||Sunday 21:00 - Friday 21:00|
|ZARJPY||Sunday 21:00 - Friday 21:00|
|USDCNH||Sunday 21:00 - Friday 21:00|
|GBPSEK||Sunday 21:00 - Friday 21:00|
|USDHKD||Sunday 21:00 - Friday 21:00|
|USDILS||Sunday 21:00 - Friday 21:00|
|USDRUB||Sunday 21:00 - Friday 21:00|
|USDZAR||Sunday 21:00 - Friday 21:00|