What is Forex?
Currency Exchange – Currency Pairs – Forex – FX – Currency Markets
The forex market is a global market for the trading of currencies. This includes all aspects of buying, selling and exchanging currencies at current or determined prices.It is by far the largest market in the world. Financial centres around the world function as stand points of trading between a range of multiple types of buyers and sellers 24/7. The foreign exchange market does not determine a relative value of a currency, it sets the current market price of the value of one currency against another (Currency Pair) Hense the phrase Currency Exchange or Foreign Exchange (Forex).
Forex is probably my favourite area to trade. High volatility and Liquidity. Huge trading volume going on and I feel that currency markets are easier to read than Shares or even indices.
What happens in the Indices will effect the value of the currency of which it is traded but market sentiments seem to effect currency massively on the day to day I often trade Long and Short in high value transactions intra-day with great success and I hedge these positions using Binary Countdowns for quick profits. At the moment, Brexit concerns are sending markets into a frenzy and causing even more volume of trades giving us a great opportunity to capitalise on it.
How does a Forex Work?
In a forex transaction, a party purchases a quantity of one currency by paying with some quantity of another currency (the pair). The modern foreign exchange market began forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime.
The foreign exchange market is quite unique because of its enourmous trading volume, It is a multi Trillion Dollar $$ market daily representing the largest asset class in the world.
It is a global market and diverse by its nature and has opportunity to profit in all situations.
Its near 24/7 operation the market only closes at weekends trading from 22:00 GMT on Sunday evening to 22:00 GMT the following Friday. non stop throughout.
There are a huge amount of factors that effect exchange rates so there is a lot of volatility which is what us traders need to turn a profit.
Leverage products can be used to trade Forex and can enhance Profit and Loss greatly which helps to push the volume of transactions and size of transactions daily.