The international currency market exist in the way it is today since the 70's of the previous century. The transformation from fixed quotes to changing ones makes it possible for investors and companies to make profit from trading the currency pairs. The word Forex origins from the Foreign Exchange Market and with it we define the currency market.
The daily turnover on the currency market goes up to the amount of 3.5 trillion dollars. That makes it the most liquid market in the world. As such of a market the forex market has almost at any time people that want to buy a price and people that are selling it. Sometimes, very rarely, there are no participants on the market that want to buy or sell the currency on the certain price level and the market makes a gap. Since that happens very seldom, we can account it as an exception.
The currency market functions 24 hours a day from Monday to Friday. Depending on the time zone the trades go through the main financial centers - London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris, Sidney. The biggest movements on the market happen through the London session and the New York session.
Since in the last decade the margin trading and the financial leverage was introduced to the forex market, there are more and more individual investors and traders that step into the currency trading. Those two financial advantages everybody can take part in the Foreign exchange market even if he has not a lot of money in his account. There are forex brokers that will give you leverage up to 1:500, which means that you can trade with a capital 500 times bigger than your account. If you have invested $1000 in your account you can trade with a sum up to $500 000.
After an individual registers with his forex broker he gets a trading platform that can be installed on his computer. With the help of that platform the trader can analyze the price movement. He places so-called indicators and lines that help him predict future movements on the market. Combining several indicators and techniques he gets a clear entry point to the market.
There are several types of traders on the forex market. According to their trading system they are divided to investors, position traders, day traders and scalpers. There are also traders that program all of their trading system into a code that is called an expert advisor. That way all of the trading and analysis they do can be automated and hands free. That way the trader is not obligated to stay in front of the computer all day long waiting for a signal. Such automated robots can even be bought even by inexperienced traders and people that don't know much about the forex market.
The daily turnover on the currency market goes up to the amount of 3.5 trillion dollars. That makes it the most liquid market in the world. As such of a market the forex market has almost at any time people that want to buy a price and people that are selling it. Sometimes, very rarely, there are no participants on the market that want to buy or sell the currency on the certain price level and the market makes a gap. Since that happens very seldom, we can account it as an exception.
The currency market functions 24 hours a day from Monday to Friday. Depending on the time zone the trades go through the main financial centers - London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris, Sidney. The biggest movements on the market happen through the London session and the New York session.
Since in the last decade the margin trading and the financial leverage was introduced to the forex market, there are more and more individual investors and traders that step into the currency trading. Those two financial advantages everybody can take part in the Foreign exchange market even if he has not a lot of money in his account. There are forex brokers that will give you leverage up to 1:500, which means that you can trade with a capital 500 times bigger than your account. If you have invested $1000 in your account you can trade with a sum up to $500 000.
After an individual registers with his forex broker he gets a trading platform that can be installed on his computer. With the help of that platform the trader can analyze the price movement. He places so-called indicators and lines that help him predict future movements on the market. Combining several indicators and techniques he gets a clear entry point to the market.
There are several types of traders on the forex market. According to their trading system they are divided to investors, position traders, day traders and scalpers. There are also traders that program all of their trading system into a code that is called an expert advisor. That way all of the trading and analysis they do can be automated and hands free. That way the trader is not obligated to stay in front of the computer all day long waiting for a signal. Such automated robots can even be bought even by inexperienced traders and people that don't know much about the forex market.
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Forex Market Basics
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