Currency Trading Information Channel
A Short Introduction To FOREX (Foreign Exchange)
FOREX is the world's largest and most liquid trading market. Many consider FOREX as the best home business you can ever venture in. Even though regular people have had the opportunity to take part in trading foreign currencies for profit (in the same way banks and large corporations do) since 1998, it is just now becoming the cool, hip, new "thing" to talk about at parties, business events, and other social gatherings.
Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading for income and profit because of its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities.
But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, the mind has to be open and the slate has to be clear for starting out fresh with the CORRECT information.
So, in this article, it is my attempt to give you some solid, but not over-detailed, information on just what the heck "FX" (FOREX) means, what it is, and why it exists.
As a successful trader said, Trading FOREX is like picking money up off the floor. Not trading FOREX is like leaving it there for someone else to pick up." Others in the industry have also said, Trading FOREX is like having an ATM machine on your own computer.
Here's an explanation (one I feel you'll appreciate) of what FOREX is and how a bunch of traders, profit from it:
The Foreign Exchange Market, also referred to the "FOREX" or "FX" market, is the spot (cash) market for currency.
But, don't mistake FX as trading the futures market, where you buy a contract to purchase a particular currency at a future price in time.
What FX traders do is much less risky than trading currencies on the futures market, much more profitable, and a lot easier, than trading stocks.
So, you're probably wondering where it's at ... or ... how to access the FX market?
The answer is: FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.
Yes, if that's the first time you've heard about an all-electronic market, I know this may sound somewhat intriguing to you.
Here's what you are actually trading when you participate in the Foreign Exchange (FOREX) market:
Essentially, like the large banks who use the FX market to protect themselves from the fluctuating exchange rate of different currencies, as an investor, what a FX trader is doing is simultaneously exchanging one countries currency for another. So, in actuality, they're electronically trading a currency-pair and the price that is quoted to us is the exchange rate between the two currencies.
In other words, simply the quoted price is how many of the one currency is worth 1 of the other currency.
EUR/USD last trade 1.2850 - One Euro is worth $1.2850 US dollars. The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.
The FOREX has a DAILY trading volume of around $1.5 trillion dollars - 30 times larger than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each take 1 million dollars out of the FOREX market every day and the FOREX would still have more money left than the New York Stock exchange every day!
The FOREX plays a vital role in the world economy and there will always be a tremendous need for the FOREX. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Japan can sell products in the United States and be able to receive Japanese Yen in exchange for US Dollar.
There's plenty of money to be made using FOREX for plenty of traders that use the right trading techniques / tactics that will allow them to profit immensely. And, with only 5% of the daily turnover of volume coming from banks, government and large corporations who need to hedge, the other 95% is for speculation and profit.
http://www.1-forex.com Omar Vargas; Forex trader and freelance writer.
MORE RESOURCES updated Sat. May / 21 / 2022
Best books to learn Forex Trading from scratch Free Press Journal
Weakened Euro May Become Equal to the U.S. Dollar The New York Times
How to Know Which Currency Pair to Trade Startup.info
Hong Kong Spends $722 Million to Defend Currency Peg The Wall Street Journal
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Even the Foreign-Exchange Market Is Getting Kind of Crazy The Wall Street Journal
BC: Tips for Success in Forex Trading Punch Newspapers
Asian stocks rise after Wall St slips closer to bear market KSAT San Antonio
Currency trading in overdrive with dollar at highest level in two decades (NYSEARCA:UUP) - Seeking Alpha
Currency trading in overdrive with dollar at highest level in two decades (NYSEARCA:UUP) Seeking Alpha
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Value of Pakistani Rupee touches fresh low at PKR 200 against US Dollar The New Indian Express
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Why forex trading is not gambling Nairametrics
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U.K. shares higher at close of trade; Investing.com United Kingdom 100 up 1.21% Investing.com India
Nifty Expected to Rebound As Asian Stocks Jump in Early Trade: Key Indicators Investing.com India
GBP/EUR: Pair Holds Steady Below €1.18 Currency Live
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Moscow Limits Foreign-Currency Trading to Shore Up Struggling Ruble The Wall Street Journal
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FX trading: A loser's game? ETF Stream
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Trading Forex vs Futures: Key Differences IG International
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Is forex trading a way to make a living? Nairametrics
Mastering Forex Trading Psychology Finance Magnates
Currency Trading Basics & How It Works Investopedia
FOREX.com Review | The Ascent The Motley Fool
Analysis | How Sanctions Make the Ruble Harder to Trade or Value The Washington Post
Turks Abandon the Lira for Dollars as Currency Crisis Deepens The Wall Street Journal
Forex Trading Hours: Limitless Trading in an Endless Market The Coin Republic
Changing the Top Global Currency Means Changing the Patterns of Global Trade - Carnegie Endowment for International Peace
Changing the Top Global Currency Means Changing the Patterns of Global Trade Carnegie Endowment for International Peace
Inside the weird new world of social ‘forex’ trading—where you sign up friends, and some report risky red flags for investors - Fortune
Inside the weird new world of social ‘forex’ trading—where you sign up friends, and some report risky red flags for investors Fortune
Basics of Price Gaps in Foreign Currency Exchange Market The Southern Maryland Chronicle
What Is Forex Trading? Guide to Foreign Exchanges Investopedia
Falling Dollar Shows Resurgence of Infamous Carry Trade The Wall Street Journal
A Surprising Reason Why Currency Exchange Rates Fluctuate Kellogg Insight
Currency Exchange Near Me: Find Locations Nearby GOBankingRates
Bank of England stumbles over FX trading gold mine Financial Times
Volume of foreign exchange trading helps predict returns on currency trading, says study - Cambridge Network
Volume of foreign exchange trading helps predict returns on currency trading, says study Cambridge Network
Global currency market seen as the premiere way to trade central banks' pandemic-era policy divergence - MarketWatch
Global currency market seen as the premiere way to trade central banks' pandemic-era policy divergence MarketWatch
6 Questions About Currency Trading Investopedia
Ukraine crisis hits global FX, but reaction not always as expected Euromoney magazine
Local currency trading with Sri Lanka not feasible, says govt official Business Standard
Central bank sync puts foreign exchange market to sleep Financial Times