"FX" is an abbreviation of "forex" or "foreign currency". Foreign exchange market is the largest and most liquid in world trade of about $ 2000000 million each day (that's more than 30 times the daily volume of NASDAQ and NYSE combined). The Forex market is a cash interbank / interdealer market. In simple terms, this means that the currencies traded in the forex market are traded directly between banks, foreign currency and forex investors wishing either to diversify, speculate or to hedge foreign currency. The Forex market is a "market" in the traditional sense, due to the fact that there is no centralized location for forex trading activity and, therefore, the operator places on the forex market are considered counter (OTC). Forex trading between parties occurs through computer terminals, exchanges and over telephones at thousands of locations worldwide. CFos / FX clients can trade through online trading platforms for currencies and / or by telephone directly with a forex broker on our trading desk.
Until recently the forex market has not been available for small speculators. The large minimum sizes of foreign currency transaction and financial requirements left this market in the hands of banks, the main agents of change and the occasional large fx speculator. Now, with the ability to leverage large positions with relatively small capital (margin), the currency market is more liquid than ever and is available to most investors.
Five major currencies dominate trading in currency markets: the U.S. dollar, Eurocurrency, Japanese Yen, Swiss franc and British pound. Currencies are traded in pairs, also known as crosses in the spot currency market. For example, buying the EUR / USD in the forex spot market simply means that the buyer is buying the European currency and the sale of U.S. Dollar waiting to get the value of Euro in relation to the U.S. dollar. Similarly, the seller of a EUR / USD contract sold the euro against the U.S. dollar. Official figures show the U.S. dollar is on one side 83% of all foreign exchange transactions in cash. The "spot" market simply refers to a currency contract with a valuation date that require early solution within two business days.
In recent decades, increased international trade and foreign investment has made the economies of the world more interrelated. New opportunities for investors have also been created with the fall of communism and the dramatic growth of Asian economies and Latin America. Today, supply and demand for a particular currency is a factor in determining exchange rates. Many factors, such as regularly reported economic figures and unexpected news reports, such as natural disasters or political instability, could also alter the desirability of holding a particular currency, thus influencing international supply and demand for that currency . It should come as no surprise that many shrewd investors have already taken advantage of fluctuations in exchange rates to profit handsomely.
Until recently the forex market has not been available for small speculators. The large minimum sizes of foreign currency transaction and financial requirements left this market in the hands of banks, the main agents of change and the occasional large fx speculator. Now, with the ability to leverage large positions with relatively small capital (margin), the currency market is more liquid than ever and is available to most investors.
Five major currencies dominate trading in currency markets: the U.S. dollar, Eurocurrency, Japanese Yen, Swiss franc and British pound. Currencies are traded in pairs, also known as crosses in the spot currency market. For example, buying the EUR / USD in the forex spot market simply means that the buyer is buying the European currency and the sale of U.S. Dollar waiting to get the value of Euro in relation to the U.S. dollar. Similarly, the seller of a EUR / USD contract sold the euro against the U.S. dollar. Official figures show the U.S. dollar is on one side 83% of all foreign exchange transactions in cash. The "spot" market simply refers to a currency contract with a valuation date that require early solution within two business days.
In recent decades, increased international trade and foreign investment has made the economies of the world more interrelated. New opportunities for investors have also been created with the fall of communism and the dramatic growth of Asian economies and Latin America. Today, supply and demand for a particular currency is a factor in determining exchange rates. Many factors, such as regularly reported economic figures and unexpected news reports, such as natural disasters or political instability, could also alter the desirability of holding a particular currency, thus influencing international supply and demand for that currency . It should come as no surprise that many shrewd investors have already taken advantage of fluctuations in exchange rates to profit handsomely.
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