This article will provide you with some key facts about currency trading and the forex market. You will learn how it works and who the main players are.
The foreign exchange market also known as forex is the most traded financial market in the world. Every trading day over 3.2 trillion dollars worth of currencies are traded across the globe by banks institutions and individual investors.
The forex trading week begins on Monday morning at 7am in Sydney Australia then it opens in Tokyo, then London and lastly in New York. The last one to close is New York at 5pm on Friday evening.
Unlike other forms of trading that you may be familiar with; there is no centralized marketplace for forex. Instead currencies simply trade over-the-counter in whatever market is open at the time. This gives forex traders the unique opportunity to trade 24 hours a day, 5days a week.
Traders invest in currencies for many reasons, some of which you may already know. For example if you went on holiday overseas and exchanged money you sold your home countries currency to buy some of the foreign currency. When you returned you do the reverse (sold the foreign currency to buy your home currency back). As the exchange rates fluctuate you may have notices the difference in the buying power of your money.
Forex traders attempt to take advantage of these fluctuations by buying or selling individual currencies to speculate the future value of one currency relative to another.
Almost everyday new economic reports and data are released that affect the value of currencies traded world wide. A great way of familiarizing yourself with currency trading is to experience it first hand. Forex Automoney is a Forex Trading Softwarethat can help beginners get the hang of currency trading. It provides signals that help you trade at the right time and at the right price.
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