What is Forex- FX Trading?
FOREX or The Foreign
exchange rate market is an international market where
various currency exchange transactions take place; this is in
the shape of simultaneously buying one currency and selling
another. The most commonly traded currencies are referred to as
“Majors."
These seven currencies are the US Currency (Dollar, USD),
Japanese Yen (JPY), Euro (EUR), British Pound (GBP), Swiss Franc
(CHF), Canadian Dollar (CAD) and Australian Dollar (AUD). The
Forex system
in operation today was established in the
1970s when free currency
exchange rates were introduced, this period also saw the
US Dollar overtake the British Pound as the benchmark currency.
Prior to this and in particular during World War II, exchange
rate remained more stable.
Forex trading in simplest terms is the buying of one currency
and the selling of another.
Forex trading, also referred to, as “FX” is open to
corporations, small businesses, commercial banks, investment
funds and private individuals, it is the largest financial
market in the world averaging a daily turnover of over $1
trillion dollars, making it a diverse and exciting market. It is
a 24-hour market enabling it to accommodate constant changing
world currency exchange rates
. According to New York time, trading begins at 2.15pm on Sunday
in Sydney and Singapore and progresses through to Tokyo at 7pm,
London at 2am and reaches New York at 8am. This leaves investors
free to respond to global political, economic and social events
when they take place, day or night. |
|
