Introduction to Currency Trading (FOREX)
Introduction to Currency Trading (FOREX)
Forex (Foreign Exchange Market), refers to an international exchange market where currencies are bought and sold.
The foreign exchange market that we see today began in the 1970’s, when free exchange against another currencies were introduced.
In such an environment unique market for a number of reasons. Firstly, it is on eof the few markets in which it can be said with very few qualifications that it is free of external controls and that it can not be manipulated.
It’s also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency.
Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.
Another somewhat unique characteristic of the forex money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains.
Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.
Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications trade is opne 24 hours a day from Sunday afternoon until Friday afternoon ( 00:00 GMT on Monday to 10:00 pm GMT on Friday).
May 20 2008 06:22 am | Main Content
One Response to “Introduction to Currency Trading (FOREX)”
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May 20th, 2008 at 6:29 am
This is the article for newbies in Forex.
I hope it’s useful some how.
Please also read other articles in my blog and you will get some great ideas for your foreign currency trading.
Many people think that foreign exchange is hard to play with but for me it’s so easy!
If you know how much money i earn daily from playing online forex trading only few hours per day!