By John Eather
What is FOREX? Foreign Exchange Market, also known as 'FOREX' or 'FX' is the largest financial market in the world with a daily turnover of US $3. 2 trillion. The FOREX trading platform allows us to buy one currency and sell another. Currencies trade in pairs, like the US Dollar / Japanese Yen (USD/JPY).
There are two reasons to buy and sell currencies. About 5% of the daily turnover is generated by companies and governments that buy or sell products and services in a foreign country, or have to convert profits from foreign sales into domestic currency. The remaining 95% is represented by profit or speculative transactions.
How does FOREX work? Most traders focus on major currencies. In the present, over 85% of daily transactions involve trading this type of currencies including U. S. Dollar, Euro, Japanese Yen, British Pound, Canadian Dollar, Swiss Franc and Australian Dollar. Open 24 hours a day, FOREX trading begins in Sydney and moves around the globe. Investors can react immediately to currency fluctuations caused by economic, social and political events, whenever they occur.
FOREX market is considered an over-the-counter market, because transactions are conducted either by telephone or by electronic networks, having no central exchange.
It's not difficult to read a foreign exchange quote if you keep in mind two things: the first currency listed is the base currency and the value of the base currency is always 1. U. S. Dollar (USD) is normally the essence of the FOREX market and currently it represents the base currency for quotes. For example, a quote of USD / JPY 120. 01 means that 1USD = 120. 01 JPY.
When using FOREX trading platform, often you'll see a quote of 2 sides, namely the BID and the ASK. The BID is the price at which you can sell base currency (at the same time buying the counter currency). The ASK is the price at which you can BUY base currency (at the same time selling the counter-pair).
If you're ready to invest money, you can start using FOREX trading platform anytime. FOREX market transactions should be treated carefully, because you can lose everything.
Are you ready to become a Forex trader?
Sign up for John Eather's Free eCourse on forex trading platforms.
Keep up to date with the latest info concerning Automated Trading.
Go to http://www.MoneyMakingFxTrader.com to get more details.
Article Source: http://EzineArticles.com/?expert=John_Eather
There are two reasons to buy and sell currencies. About 5% of the daily turnover is generated by companies and governments that buy or sell products and services in a foreign country, or have to convert profits from foreign sales into domestic currency. The remaining 95% is represented by profit or speculative transactions.
How does FOREX work? Most traders focus on major currencies. In the present, over 85% of daily transactions involve trading this type of currencies including U. S. Dollar, Euro, Japanese Yen, British Pound, Canadian Dollar, Swiss Franc and Australian Dollar. Open 24 hours a day, FOREX trading begins in Sydney and moves around the globe. Investors can react immediately to currency fluctuations caused by economic, social and political events, whenever they occur.
FOREX market is considered an over-the-counter market, because transactions are conducted either by telephone or by electronic networks, having no central exchange.
It's not difficult to read a foreign exchange quote if you keep in mind two things: the first currency listed is the base currency and the value of the base currency is always 1. U. S. Dollar (USD) is normally the essence of the FOREX market and currently it represents the base currency for quotes. For example, a quote of USD / JPY 120. 01 means that 1USD = 120. 01 JPY.
When using FOREX trading platform, often you'll see a quote of 2 sides, namely the BID and the ASK. The BID is the price at which you can sell base currency (at the same time buying the counter currency). The ASK is the price at which you can BUY base currency (at the same time selling the counter-pair).
If you're ready to invest money, you can start using FOREX trading platform anytime. FOREX market transactions should be treated carefully, because you can lose everything.
Are you ready to become a Forex trader?
Sign up for John Eather's Free eCourse on forex trading platforms.
Keep up to date with the latest info concerning Automated Trading.
Go to http://www.MoneyMakingFxTrader.com to get more details.
Article Source: http://EzineArticles.com/?expert=John_Eather
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