Forex trading meaning

?( What is Forex (FX

   Foreign exchange (FX) refers to a market where multiple currencies and currency derivatives are exchanged, as well as currencies and currency derivatives.  The foreign exchange market is the world's largest, most liquid market in terms of volume of trade, with trillions of dollars exchanged every day.  It has no central location, but the foreign exchange market is an electronic network of banks, brokers, institutions and individual traders who trade mostly through 

brokers or banks

  From financial institutions to individual investors, there are currency needs, and they also predict the direction of movement of a particular pair of currencies.  They post their orders to buy and sell currencies on the network so that they can negotiate with other currency orders of other parties

   The foreign exchange market is open 24 hours a day, excluding holidays.  The foreign exchange market is also open on many holidays, when the stock market is closed, although this may reduce the trading volume

 Forex Pairs

   When creating trading currencies, they are listed in pairs, such as USD / CAD, EUR / USD, or USD / JPY.  They represent the US Dollar (Canada) vs. Canadian Dollar (CAD), Euro (EUR) vs. US Dollar and US Dollar vs. Japanese Yen (JPY)

 Each pair will also include a price, such as 1.2569.  If this price was related to the USD / CAD pair, then it means that buying one US dollar costs 1.2569 CAD.  If the price rises to 1.3336, it is now 1.3336 CAD to buy one US dollar.  The value of the US dollar has risen (decreased in CAD) because it now costs more CAD to buy one US dollar

   Lots of foreign currency

   Many currencies in the foreign exchange market are called micro, mini and standard lots.  A micro lot is a given currency value of 1000, a mini lot is 10,000, and a standard lot is 100,000.  It's different when you go to the bank and want to exchange ڈالر 450 for your trip.  When trading in the electronic Forex market, the currency is traded in set blocks, and you can trade with your trading account balance within the limits you want.  For example, you could trade seven micro lots (7,000) or three mini lots (30,000) or 75 standard lots (750,000) for example

 Foreign exchange volume

   The foreign exchange market is unique for a number of reasons, the main reason being its size.  Trade volume is usually very large.  For example, according to Bank for International Settlement 1, the average trade in the foreign exchange market in April 2019 is 6.6 trillion

   The largest foreign exchange markets are located in major global financial centers such as London, New York, Singapore, Tokyo, Frankfurt, Hong Kong and Sydney

 How to trade foreign currency

   The foreign exchange market is open 24 hours a day, five days a week in major financial centers around the world.  This means you can buy or sell currencies at any time during the week

   Historically, foreign exchange trade was largely limited to governments, large companies, and hedge funds.  But in today's world, trading currencies is as easy as clicking a mouse.  Accessibility is not a problem, meaning anyone can do it.  Many investment firms, banks and retail foreign exchange brokers allow individuals to open accounts and trade currencies

   When you trade in a foreign exchange market, you are buying or selling the currency of a particular country rather than another country.  But there is no physical exchange of money from one party to the other.  The same thing happens with foreign exchange stores.  Think of the tourists who come to Time Square in New York City, Japan.  He can convert his Japanese yen into real US dollars in cash and in doing so he has to pay a commission fee so that he can spend his money while traveling.  But in the world of electronic markets, traders are usually taking a position in a specific currency, with the expectation that the currency they are buying or selling will have some upward momentum and power so they make a profit

 Spot transactions

   A spot market contract is for instant delivery, usually described as two business days for a currency pair.  The main discount is USD / CAD buying and selling, which takes place on a business day.  The business day is determined on Saturdays, Sundays and any currency of the business pair except for legal holidays.  During the Christmas and Easter seasons, some spot trades can take up to six days to resolve.  Funds are exchanged on a set date, not on a transaction date

   The US dollar is the most actively traded currency.  The euro is the most active counterfeit currency, followed by the Japanese yen, the British pound and the Swiss franc

   Market moves are a combination of speculation, economic strength and the difference between growth and interest rates

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