Forex Basics
What is Forex
Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined.
Forex Market Size
The FX market has become the world’s largest financial market, and it is not uncommon to see over $3 trillion US traded each day.
Why Forex
INTER-BANK MARKET
The backbone of the FOREX market consists of a global network of dealers (mainly major commercial banks) that communicate and trade with one another and with their clients through electronic networks and telephones.
The backbone of the FOREX market consists of a global network of dealers (mainly major commercial banks) that communicate and trade with one another and with their clients through electronic networks and telephones.
The History of Forex Trading
The FOREX trading system was originated centuries ago. Since the era of Babylonians, the need to own and exchange different countries for trading purposes existed. Although, during that time, it was more known as the Barter System, which we call Trading, today!
Forex vs Stocks
Differences between Forex and Stocks
Forex vs Futures
Differences between Forex and Futures
Forex vs Options
Differences between Forex and Options
Percentages of Trades for the Major Currencies
There are many currencies you can trade. The vast majority of trades however consist of pairs involving just these seven currencies:
Base Currency
The first currency in a currency pair. In a currency exchange, the exchange rate is quoted as the units of one currency in terms of a single unit of a base currency. For example, in a currency exchange of U.S. dollars for Japanese Yen, the base currency is the U.S. dollar.
Counter Currency
The second currency in a currency pair. In a currency exchange, the exchange rate is quoted as the units of the counter currency in terms of a single unit of a base currency. For example, in a currency exchange of Japanese Yen for British pounds, the Yen is the counter currency. also called quote currency or terms currency.