What Is Forex Made Easy?
Foreign Exchange or Forex (also known as 4X) is an international exchange market in which currencies are bought and sold, sold and bought, 24/6. Forex as we know it now began in the early 1970s, when floating currencies and exchange rates were introduced.
Forex is a unique market because it is free of external controls. While this seems like a good thing especially because there seems to be too much regulation already, the regulators are not as convinced.
However, many government and private sector regulators want to change this. They feel that an unregulated market is extremely dangerous because people and accounts can be wiped out in minutes by greedy con artists and market manipulators. Probably regulation will occur later rather than sooner. Like any market this large, there are thousands of small and large players involved, and change is painstakingly slow.
The 4X market cannot be easily manipulated. However, there are times that the "big boys" can and do manipulate the market at will. Therefore, it's prudent to discover when those times are (holidays or whenever regular Joes are able to find extra time to invest).
$1.5 Trillion US Dollars. That's the amount that gets traded on the 4X markets each and every day. It is obviously the largest liquid market in the world. Think about that figure: $1.5 trillion every day. Because of the volume and breakneck-pace, one investor (or even a small team of investors) could not significantly affect the price of a major currency.
Market liquidity simply means that investors and traders can open and close their trades within mere seconds because there are always willing buyers, sellers, and brokers (who will take a very small cut for each trade).
In Forex, there are four major currency pairs: US Dollar-Japanese Yen (USD/JPY), Euro-US Dollar (EUR/USD), US Dollar-Swiss Franc (USD/CHF), British Pound-US Dollar (GBP/USD). The first currency in the pair is known as the "base" currency. The counter currency is the second half of the pair. The Euro-US Dollar is extremely liquid and is the most traded pair on the exchange.
Currency pairs are normally traded as 100,000 base currency units. For instance, if you were buying USD/CHF at 0.98 you would be paying Swiss Francs (CHF) for US Dollars as follows: .98 X 100,000 units = $98,000 Swiss Francs for 100,000 USD, but don't worry because you will not be required to "pony up" $98,000 CHF to learn this game. It is a process called margin trading or trading on margin. That is an entirely different topic and worthy of pages and pages of instruction. Forex Made Easy is here to help and answer those questions. - 23218
Forex is a unique market because it is free of external controls. While this seems like a good thing especially because there seems to be too much regulation already, the regulators are not as convinced.
However, many government and private sector regulators want to change this. They feel that an unregulated market is extremely dangerous because people and accounts can be wiped out in minutes by greedy con artists and market manipulators. Probably regulation will occur later rather than sooner. Like any market this large, there are thousands of small and large players involved, and change is painstakingly slow.
The 4X market cannot be easily manipulated. However, there are times that the "big boys" can and do manipulate the market at will. Therefore, it's prudent to discover when those times are (holidays or whenever regular Joes are able to find extra time to invest).
$1.5 Trillion US Dollars. That's the amount that gets traded on the 4X markets each and every day. It is obviously the largest liquid market in the world. Think about that figure: $1.5 trillion every day. Because of the volume and breakneck-pace, one investor (or even a small team of investors) could not significantly affect the price of a major currency.
Market liquidity simply means that investors and traders can open and close their trades within mere seconds because there are always willing buyers, sellers, and brokers (who will take a very small cut for each trade).
In Forex, there are four major currency pairs: US Dollar-Japanese Yen (USD/JPY), Euro-US Dollar (EUR/USD), US Dollar-Swiss Franc (USD/CHF), British Pound-US Dollar (GBP/USD). The first currency in the pair is known as the "base" currency. The counter currency is the second half of the pair. The Euro-US Dollar is extremely liquid and is the most traded pair on the exchange.
Currency pairs are normally traded as 100,000 base currency units. For instance, if you were buying USD/CHF at 0.98 you would be paying Swiss Francs (CHF) for US Dollars as follows: .98 X 100,000 units = $98,000 Swiss Francs for 100,000 USD, but don't worry because you will not be required to "pony up" $98,000 CHF to learn this game. It is a process called margin trading or trading on margin. That is an entirely different topic and worthy of pages and pages of instruction. Forex Made Easy is here to help and answer those questions. - 23218
About the Author:
Chan Boldene is a technical writer who enjoys writing about many subjects including Forex Made Easy, He also enjoys referring others to his close friend's Daily Devotions at Devotions ChopChopsite.
posted by X - Men @ 6:33 AM
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