SigmaForex Has The Entrance To Forex
"Forex" stands for foreign exchange; it's also known as FX
you buy one currency while simultaneously selling another - that is, you're exchanging the sold currency for the one you're buying.
Who trades Forex, and why?
Daily turnover in the world's currencies comes from two sources:
- Foreign trade (5%). Companies buy and sell products in foreign countries, and convert profits from foreign sales into domestic currency.
- Thinking for profit (95%).
Most traders focus on the biggest, liquid currency pairs. "The Majors" include US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. In fact, more than 85% of daily forex trading happens in the major currency pairs.
The world's most traded market, trading 24 hours a day
With average daily turnover of US$3.2 trillion, Foreign Exchange is the most traded market in the world.
A true 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, Foreign Exchange trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York.
Unlike other financial markets, investors can respond immediately to currency fluctuations, whenever they occur - day or nigh
The purpose of this overview is to introduce the forex market to you. As with many markets, there are many derivative of the central market such as futures, options and forwards. In these tutorials, we will be discussing the main market sometimes referred to as the Spot or Cash market.
The word "FOREX" is derived from the words Foreign Exchange and is the largest financial market in the world. Unlike many markets, the FX market is open 24 hours per day and has an estimated $3.2 Trillion in turnover every day.
This tremendous turnover is more than the combined turnover of the main worlds' stock markets on any given day. This tends to lead to a liquid market and thus a desirable market to trade.
Unlike many other securities (any financial instrument that can be traded), the FX market does not have a fixed exchange. It is primarily traded through banks, brokers, dealers, financial institutions and private individuals.
Trades are executed through phone and increasingly through the Internet.
It is only in the last few years that the smaller investor has been able to gain access to this market. Previously the large amounts of deposits required precluded the smaller investors. With the advent of the Internet and growing competition it is now easily within the reach of most investors.
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