Forex Trading

Forex Trading is known as foreign exchange market or currency market or Forex. It is the market where one currency is traded for another. In now days is the largest market in the world it trades about $5 trillion per day in comparison with the securities market that trades about $22.4 billion per day

Some of the participants in this marketplace are simply looking for to exchange a foreign currency for their selves , like multinational companies which must pay salaries and other payments in different countries than they sell products in. On the other hand, a huge part of the market is made up of currency traders, who make profit on movements in exchange rates, much like others would make profit on movements of stock prices. Currency traders try to take benefit of even tiny fluctuations in exchange rates.

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In the forex trading market there is no ‘inside information’. Currencies rates fluctuations are usually caused by real financial flows as well as anticipations on worldwide macroeconomic circumstances. Important news is released in public so, in theory, every person in the globe receives the same news at the same time.

Currencies are traded against one another. The form of currencies pairs is XXX/YYY, where YYY and XXX are the international three-letter codes of the currencies. For example, EUR/GBP is the price of the EURO expressed in English Pound, as in 1 euro = 0.86542 pound.

The forex trading operates 24 hours per day during the week between individuals online and off line traders with Forex brokers, brokers with banks, and banks with banks.

Forex Traders can work for the period of the day and trade in the evenings, taking benefit of the market’s 24 hours lengthy trading day.

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