FOREX

“Forex” or “FX” is the common name for the Foreign Exchange market, which is the largest financial market in the world. With a daily turnover of over $1.5 trillion, the Foreign Exchange market conducts more than three times the aggregate amount volume of the United States Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location or central exchange. It operates through an electronic network of banks, corporations, and individuals trading one currency for another. Since the Forex market lacks a physical exchange, the market trades continuously on a 24-hour basis, moving from one time zone to the next, across each of the world’s major financial centers every day.The term “foreign exchange” means the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY).The best trading opportunities for speculators occur in the most liquid (i.e. most commonly traded) currencies such as the US Dollar, British Pound, Australian Dollar, Japanese Yen, Eurodollar and Swiss Franc. Often referred to by traders as “the Majors”, these currencies account for well over 85% of all daily Forex transactions.