FOREX TRADING
Foreign Exchange:
This
short introduction explains the basics of trading Forex online, a brief
explanation of the markets and the major benefits of trading Forex online.
There are also two scenarios describing the implications of trading in a bear
as well as a bull market to better acquaint you with some of the risks and
opportunities of the largest and most liquid market in the world. As
an additional aid for those who are new to Forex, there is also a glossary at
the bottom of this text which explains some of the terms used in connection
with currency trading.
Overview:
Foreign exchange, Forex or
just FX are all terms used to describe the trading of the world's many
currencies. The Forex market is the largest market in the world, with trades
amounting to more than USD 3 trillion every day. Most Forex trading is
speculative, with only a low percentage of market activity representing
governments' and companies' fundamental currency conversion needs.
Unlike
trading on the stock market, the Forex market is not conducted by a central
exchange, but on the “interbank” market, which is thought of as an OTC (over
the counter) market. Trading takes place directly between the two counterparts
necessary to make a trade, whether over the telephone or on electronic networks
all over the world. The main centres for trading are Sydney Tokyo London Frankfurt and New York
