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Currency Trading Information Channel |
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Currency Trading Information Channel |
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Forex ProfitsThe Forex Market-What, When and Why? Forex, FX and the Forex market are some common abbreviations for the Foreign Exchange market. Actually it is the largest financial market in the world, where money is sold and bought freely. In its present condition the Forex market was launched in the seventies, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from demand and supply. As far as the freedom from any external control and free competition are concerned, the Forex market is a perfect market. With a daily turnover of over trillions of dollars, the Foreign Exchange market conducts more than three times the aggregate amount volume of the United States Equity and Treasury markets combined. The Forex market is an over-the-counter market where buyers and sellers conduct foreign exchange business using different means of communication. Unlike other financial markets, the Forex market has no physical location or central exchange. Since the Forex market lacks a physical exchange, the market trades continuously on a 24-hour basis, moving from one time zone to the next, across each of the world's major financial centers every day. Trillions of dollars of foreign exchange activity takes place every day. From 1997 to the end of 2000, daily forex trading volume surged approximately from US$5 billion to US$1.5 trillion and more (according to various recent studies it has touched $1.7 trillion per day and dwarfs all other markets for trading in size and volume). It is really difficult, if not impossible; to determine an absolutely exact number because trading is not centralized on an exchange. But one thing is for sure that the Forex market continues to grow at a phenomenal rate. Before the advent of Internet and ecommerce, only big corporations, multinational banks and wealthy individuals could trade currencies in the Forex market through the use of the proprietary trading systems of banks. These systems required as much as US$1 million to open an account. Thanks to advancements in online technology, today investors with only a few thousand dollars can have access to the Forex market 24 hours a day and around 5 ½ days of a week. The Forex market is a nonstop cash market where currencies of nations are traded, typically via brokers called forex brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets while traders increase or decrease value of an investment upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events so it is also considered to be a highly volatile and fragile market too. Conditions of the Forex market never remain the same they changes every second. The foreign exchange market dwarfs the combined operations of the New York, London, and Tokyo futures and stock exchanges. According to its size and scope it is many times larger than all other markets. Stats shows that spot transactions and forward outright Forex trading take place in the inter-bank market. 51% of the market is in spot Forex transactions, followed by 32% in currency swap transactions. Forward outright Forex transactions represent another 5% of this daily turnover, with options on 'interbank' Forex transactions making up another 8%. Therefore the inter-bank market accounts for 96% of the global foreign exchange market, with the remaining 4% being divided among all the global futures exchanges. For traders, Forex trading provides an alternative to stock market trading. While there are thousands of stocks to choose from, there are only a few major currencies to trade (the Dollar, Yen, British Pound, Swiss Franc, and the Euro are the most popular). Forex trading also provides a lot more leverage than stock trading, and the minimum investment to get started is a lot lower. Add to that the ability to choose flexible trading hours (forex trading goes on 24 hours a day) and you have the reason why so many stock traders have flocked to day trade currencies. Anthony Trister is a currency trader and is an owner of OneDayTrades which offers free, mechanical forex signals and an automated trading program for those wanting to trade forex. Free access available here: http://www.onedaytrades.com
 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 Fed and BoE December meetings: what to expect IG International 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 Indian Rupee Decline: Rupee falls 12 paise to all-time low of 85.06 against US dollar in early trade The Hindu 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 USD/PHP Forecast Today 20/12: Tests 59 Resistance (Video) DailyForex.com 15 Banks and Credit Unions That Exchange Foreign Currencies Business Insider 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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