What Is FOREX Trading Platform And How Does It Work?
What is FOREX? - Foreign Exchange Market, also known as 'FOREX' or 'FX' is the largest financial market in the world with a daily turnover of US$3. 2 trillion. FOREX trading platform allows us to buy one currency and sell another. Currencies trade in pairs, like the US Dollar / Japanese Yen (USD/JPY).
This process of buying and selling currencies takes place from two reasons. Approximately 5% of the daily turnover is generated by companies that make financial transactions in foreign countries, converting the profits resulted into domestic currency. The remaining 95% represents the speculation for profit.
What are the concepts that make FOREX work? First of all, you must know that 85% of daily FOREX trading uses major currencies like British Pound, US Dollar, Australian Dollar, Canadian Dollar, Euro and Japanese Yen. FOREX trading platform is open 24 hours a day; because of this great feature, traders can respond anytime to currency fluctuations.
Unlike other financial markets, FOREX doesn't have a central trading location, being an over-the-counter market. Most financial operations are conducted by telephone or through electronic trading networks.
Anyone can read a foreign exchange quote as long as he knows two basic concepts: the first currency listed represents the base currency and that the value of the base currency is always 1. US Dollar is the base currency for quotes, meaning that the other currencies must be appreciated by taking into account the value of USD.
FOREX trading platform uses a quote of 2 sides- the BID and the ASK. The BID represents the price at which traders can sell base currency, while the ASK refers to the price of buying base currency.
Even the most experienced brokers face a series of unexpected risks such as interest rate risks, credit risks, country risks and exchange rate risks. No one can guarantee you how exchange rates will move. Using stop-loss orders (instructions on how to stop your transactions if the price comes to a definite point) is the best thing you can do to avoid losing all your money. - 23200
This process of buying and selling currencies takes place from two reasons. Approximately 5% of the daily turnover is generated by companies that make financial transactions in foreign countries, converting the profits resulted into domestic currency. The remaining 95% represents the speculation for profit.
What are the concepts that make FOREX work? First of all, you must know that 85% of daily FOREX trading uses major currencies like British Pound, US Dollar, Australian Dollar, Canadian Dollar, Euro and Japanese Yen. FOREX trading platform is open 24 hours a day; because of this great feature, traders can respond anytime to currency fluctuations.
Unlike other financial markets, FOREX doesn't have a central trading location, being an over-the-counter market. Most financial operations are conducted by telephone or through electronic trading networks.
Anyone can read a foreign exchange quote as long as he knows two basic concepts: the first currency listed represents the base currency and that the value of the base currency is always 1. US Dollar is the base currency for quotes, meaning that the other currencies must be appreciated by taking into account the value of USD.
FOREX trading platform uses a quote of 2 sides- the BID and the ASK. The BID represents the price at which traders can sell base currency, while the ASK refers to the price of buying base currency.
Even the most experienced brokers face a series of unexpected risks such as interest rate risks, credit risks, country risks and exchange rate risks. No one can guarantee you how exchange rates will move. Using stop-loss orders (instructions on how to stop your transactions if the price comes to a definite point) is the best thing you can do to avoid losing all your money. - 23200
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Want to find out more about forex trading platform, then visit John Eather's site on how to choose the best forex trading robot for your needs.
posted by X - Men @ 6:35 AM
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