Foreign Exchange, commonly referred to as Forex or FX in short,
is the trading in currencies of various countries. Every country or
union of countries has its own currency. The purchasing of one currency
by selling another currency is achieved in Forex trading.
Foreign exchange trade is the biggest financial market in the
world. The volume in terms of amount in Forex transactions, happening
daily all over the world is 100 times more than what is executed in
stocks in NYSE (New York Stock Exchange). It has been estimated that on
an average trades amounting to USD 1.5 trillion are being completed
daily in the global Forex market.
Learn Forex Trading
The Forex market with its higher volume of transactions done on a
daily basis, provides exciting opportunities to the investors. But it
equally carries inherent risk of potential loss. One should learn forex
trading well before actually venturing into it.
The basic principle in the Forex market is that it deals with
two currencies of different countries. One currency is bought against
the selling of another currency. A single transaction in Forex is
represented by means of two currencies as for example EURO/USD. In this
notation it meant that Euro is bought against the sale of USD.
As in the stock exchange, there are two types of markets as spot
and forward. The spot market, where the settlement is done immediately
(in practice it is two banking days) has the largest volume of
transactions. Two important Forex trade terminologies are spread and
pips. Spread is defined as the difference between the selling rate (bid)
and buying rate (ask) of a currency. A pip is the unit of small change a
currency undergoes in the process of spread. The first thing a budding
investor should do before entering the FX market is to thoroughly learn
Forex trading.
Online Forex Trading
Online Forex Trading is the new evolution in line with online
share trading. It enables the investor to deal in the market in real
time directly through brokers or bankers. Whatever purchases or sales
made, are done by the investing public themselves but are executed
through a brokers trading platform.
The advent of computers, internet and communications medium has
made it possible to achieve this. With the click of a mouse, your
purchase or selling instruction is carried out. The internet plays a
vital part in the whole process of online Forex Trading, uniting or
bringing together people all over the world.
Interest in online Forex trading is rapidly exploding because of
its transparency and potential for rapid profit. With more people
entering this market on a daily basis, this form of trading appears be
here to st