Forex market trading of foreign currencies

Forex market trading of foreign currencies The foreign exchange market, also referred to as "market Forex" (Forex) Market or (FX), as the largest financial market in the world, with more than average daily volume of its 1.9 trillion U.S. dollars - about twice the size of all the 30 stock markets America combined. The "foreign exchange" in the purchase of one currency and selling another currency at the same time. The circulation of both currencies together, for example: the euro / dollar or U.S. dollar / Japanese yen. There are two reasons for buying and selling currencies. Produces about 5% of the volume of daily business as companies and governments that buy and sell products and services in any foreign state or which should convert the profits achieved in foreign currency to local currency. The other 95% of circulation in order to achieve profits or speculation. Regarding speculation, the best opportunities for trading in currencies deliberated more (and therefore, more liquid), which called the term "major currencies." The company is currently holding more than 85% of the total financial transactions daily through trading in major currencies, which contains the U.S. dollar and Japanese yen, the euro and the British pound and Swiss Euphrates and the Canadian dollar and Australian dollar. Begin the process of circulation Daily Forex Market, which operates 24 hours in Sydney and moves around the world with the beginning of the working day in each financial center, starting from Tokyo to London and New York. In contrast to any other financial market, investors can respond to currency fluctuations resulting from economic and social conditions and political soon as they occur - whether by day or night. FX market is a market for treated outside cabin (outside the Stock Exchange) or market "between banks," given the fact conducting financial transactions between the parties by telephone or through the Web site. It depends not on the Stock Exchange trading as is the case in the stock markets and futures markets

What's Forex?

Forex" stands for foreign exchange; it's also known as FX. In a forex trade, you buy one currency while simultaneously selling another - that is, you're exchanging the sold currency for the one you're buying. The foreign exchange market is an over-the-counter market. Currencies trade in pairs, like the Euro-US Dollar (EUR/USD) or US Dollar / Japanese Yen (USD/JPY). Unlike stocks or futures, there's no centralized exchange for forex. All transactions happen via phone or electronic network.

Who trades currencies, and why?

Daily turnover in the world's currencies comes from two sources:
Foreign trade (5%).

Companies buy and sell products in foreign countries, plus convert profits from foreign sales into domestic currency.
Speculation for profit (95%). Most traders focus on the biggest, most liquid currency pairs.

"The Majors" include US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar.

In fact, more than 85% of daily forex trading happens in the major currency pairs.

The world's most traded market, trading 24 hours a day With average daily turnover of US$3.2 trillion, forex is the most traded market in the world.

A true 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York. Unlike other financial markets, investors can respond immediately to currency fluctuations, whenever they occur - day or night.