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Currency Trading Information Channel |
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Currency Trading Information Channel |
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Forex Market Overview"FX" is an abbreviation of "forex" or "foreign exchange." Foreign exchange is the largest and most liquid market in the world trading approximately $2 trillion every day (that's over 30 times the daily volume of NASDAQ and NYSE combined). The forex market is a cash interbank/interdealer market. In simplest terms, this means the foreign currencies traded in the forex market are traded directly between banks, foreign currency dealers and forex investors wishing either to diversify, speculate or to hedge foreign currency risk. The forex market is not a "market" in the traditional sense due to the fact that there is no centralized location for fx trading activity and, therefore, trades placed in the forex market are considered over-the-counter (OTC). Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide. CFOS/FX clients can trade through online forex trading platforms and/or over the telephone directly with a forex broker on our trading desk. Until recently the forex market has not been available to the small speculator. The large minimum foreign currency transaction sizes and financial requirements left this market in the hands of banks, major foreign currency dealers and the occasional large fx speculator. Now, with the ability to leverage large positions with a relatively small amount of capital (margin), the forex market is now more liquid than ever and available to most investors. Five major currencies dominate trading in the foreign exchange markets: the U.S. Dollar, Eurocurrency, Japanese Yen, Swiss Franc and British Pound. The foreign currencies are traded in pairs, also known as crosses, in the forex spot market. For example, purchasing the EUR/USD in the forex spot market simply means the purchaser is buying the Eurocurrency and selling the U.S. Dollar in anticipation of the Eurocurrency gaining value in relation to the U.S. Dollar. Similarly, the seller of a EUR/USD contract would be selling the Eurocurrency against the U.S. Dollar. Official figures show the U.S. Dollar is on one side of 83% of all spot foreign exchange transactions. The "spot" market simply refers to a currency contract with a prompt valuation date requiring settlement within two business days. Over the past several decades, an increase in international trade and foreign investment has made the economies of the world more interrelated. New opportunities for investors have also been created with the fall of communism and the dramatic growth of the Asian and Latin American economies. Today, supply and demand for a particular currency is the driving factor in determining exchange rates. Many factors such as regularly reported economic figures and unexpected news reports, such as disasters or political instabilities, could also alter the desirability of holding a particular currency, thus influencing international supply and demand for that currency. It should come as no surprise that many shrewd investors have already taken advantage of the fluctuation in exchange rates to profit handsomely. John Nobile - Senior Account Executive
 MORE RESOURCES updated Sat. December / 21 / 2024South Korea to ease foreign exchange regulations, expand FX swap line Korea Economic Daily 'There is High Migration Between FX/CFD and Crypto Traders': TradingView’s Rauan Khassan Finance Magnates How Currency Trading Works Investopedia Euro FX EUR/USD Futures Overview CME Group VCG Markets Unveils Cutting-Edge Forex Trading App Markets Insider IG US Bucks Trend in Sluggish Forex Trading Market Finance Magnates Forex Demo Account Trading Investopedia AUD/USD, USD/CAD, NZD/USD: Commodity Currencies Hitch a Ride on China’s Yield Curve Rollercoaster FOREX.com US Currency Pairs: What They Are and How They Work Investopedia Stop Hunting With the Big Forex Players Investopedia China is considering softer currency Reuters.com When Foreign Exchange Intervention Can Best Help Countries Navigate Shocks International Monetary Fund How Leverage Works in the Forex Market Investopedia 8 Forex Trading Tips Investopedia Top 5 Books for Beginner Forex Traders Investopedia USD/JPY Forecast Benzinga How to Trade Forex on News Releases Investopedia 5 Forex Careers for Financial Professionals Investopedia A perfect storm for the Canadian dollar ING Think How Would a New BRICS Currency Affect the US Dollar? (Updated 2024) Investing News Network What Is the BRICS Group and Why Is It Expanding? Council on Foreign Relations EUR/USD Analysis Today 19/12: Nears Parity (Chart) DailyForex.com Dollar Dominance in the International Reserve System: An Update International Monetary Fund What Are the Most Commonly Traded Currency Pairs? Investopedia FOREX.com vs. Robinhood: Which Broker Is Right for You? The Motley Fool Fed forces Asia to choose: Accept weaker currencies or push back The Economic Times What Is the USD/JPY Currency Pair? Investopedia Most used currencies SWIFT 2024 Statista Is the Iraqi Dinar a Wise Investment? Investopedia Most traded currencies in forex 2022 Statista Carry trades: What are they and why are they impacting the global economy? World Economic Forum USD/BRL Analysis Today - 17/12: Buying Stays Strong (Chart) DailyForex.com What Is an ECN Broker? Investopedia USD/JPY Analysis Today 19/12: Five-Month High Gains (Chart) DailyForex.com EUR/USD Forecast Today 19/12: Weakened Before FOMC (Video) DailyForex.com How Forex PAMM Accounts Work Investopedia Best Forex Brokers In 2024 Bankrate.com USD/CAD Analysis Today-18/12: Bullish Yet Vulnerable (Chart) DailyForex.com Forex Spread Betting: What It Is and How It Works Investopedia 15 Banks and Credit Unions That Exchange Foreign Currencies Business Insider USD/PHP Forecast Today 20/12: Tests 59 Resistance (Video) DailyForex.com Gold Analysis Today 18/12: Prices Steady (Chart) DailyForex.com EUR/USD Forecast Today 20/12: Drops Amid USD Strength -Video DailyForex.com Bilateral Currency Trade a la Africa: Understanding Trends Driving Currency Integration Across the Continent TRENDS Research & Advisory WTI Crude Oil Forecast Today - 19/12: Crude Oil Dips (Chart) DailyForex.com Gold Analysis Today 17/12: Continued Upward Trend (Chart) DailyForex.com Forex Christmas & New Year Holiday Trading Hours 2024 DailyForex.com Gary Stevenson: This Is How You Make Money Trading New York Magazine Topography of the FX derivatives market: a view from London Bank of England
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