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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
CFOS/FX - Online
Forex Spot and Option Brokerage
MORE RESOURCES updated Sat. April / 27 / 2024
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I read on a bulletin board a traders comment that on his
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The foreign exchange market is a worldwide market and
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Philosophy
Keen on starting FOREX trading? Why would you not be? Many
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returns' and 'low investment' - these claims have a grain
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complex.
Forex Training: Follow
Your Gut or Your Broker
Which way will the forex market move? Do you just follow
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A Look at Forex Market
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The investor in the currency market takes for granted that
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executed within seconds.
How To Control Fear And
Greed In Trading
There is an old saying that the market is driven by fear
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the EU
The European Union (EU) constitution was dealt a double
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With currency trading becoming ever more popular, the
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one look at when deciding which broker to open an account
with? These are the important points to consider.
Forex Currency
Trading
It is possible to buy and sell money from different
countries on the foreign exchange market called Forex.
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Forex
Trading
Foreign exchange market, or better known as FOREX, is the
world's largest and most prolific financial exchange market
originated on 1973. Bearing the status of largest and most
prolific currency exchange market, FOREX is the center
stage where a vast majority of the currency trading or
FOREX trading takes place, with a total daily turnover of
currency worth more than $1.
Where is the Market
Going?
If you ask me whether the market will have moved up or down
by this time next year, well I may as well flip a coin,
because I don't know. If you ask me whether the market will
have moved up or down by this time next month, well again,
I may as well flip a coin, because I still don't know.
Sending Signals for
Trading in Forex
Forex signals are sent by a forex firm to their subscribers
in order to buy and sell currencies. These signals are
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Forex Trading
Systems
The foreign exchange currency market is the largest market
in the world because it trades up to $1.9 trillion daily.
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