What is Forex Trading?
Forex – the largest financial trading market in the world. Estimated daily forex trading volume is not less than 6 trillion US dollars, active 24/5.
1. What is Forex?
Forex is the exchange of two different currencies at an agreed rate. In Vietnam, forex is also known by other names like fx or forex.
2. What is Forex trading?
Forex trading is the buying and selling of currencies. The decentralized market where international currencies are traded is an over-the-counter (OTC) market, which means that transactions are fast, cost-effective, and completed without outside supervision. Tuesday.
Forex never sleeps
Basically, forex trading is speculating on the movement of exchange prices by buying one currency while simultaneously selling another. Currency values increase (appreciate) and decrease (devaluation) relative to each other due to the impact of a number of economic, political and technical factors.
3. What is the forex market?
The Forex market is a global trading market, open 24 hours a day, 5 days a week (Monday to Friday). Forex market hours are universal, opening Monday morning in Wellington, New Zealand, before making its way to Asian markets in Tokyo and Singapore. Next, it moved to London before closing Friday night in New York.
Even when the market is closed from Saturday to Sunday, there are always news events happening that cause volatility in currencies at the open on Monday.
Forex – the largest market in the world
Forex is the largest market by market capitalization in the world with an average total trading volume of more than 6 trillion dollars per day. This means that the prices of currency pairs are constantly fluctuating, creating many opportunities for investors to profit from trading.
It is very rare that two coins have identical value. And it’s also rare that two coins retain their relative value for long.
4. Fundamentals of Forex Trading (Forex Trading)
Currency pairs are always fluctuating by many factors, such as the strength of a country’s economy. What forex traders do is hunt to profit from these fluctuations by speculating whether the price will go up or down.
All forex pairs are expressed as one currency against another. Each currency pair has a ‘base currency’, which is the front currency, and a ‘counterweight’, which is the back currency.
Each currency can appreciate or depreciate (weakened). Since there are two currencies in each pair, there are basically four directions of speculation when it comes to forex trading.
If you believe that the value of the previous currency will increase relative to the second, you will buy (long) that currency. If you believe that the value of the previous currency will decrease relative to the following currency, you will sell (short) that currency.
So, for example, if you felt the USD would appreciate against the JPY, you would buy the USD/JPY currency pair. You will also buy if you feel the JPY will weaken (depreciate) against the USD. Also, if you feel that the JPY will appreciate against the USD or the USD will weaken against the JPY, you will sell the USD/JPY currency pair.
Because of all these factors, the forex market presents you with many opportunities every day, every hour, even on a minute-by-minute basis.