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).
There are two reasons to buy and sell currencies. About 5% of the daily turnover is generated by companies and governments that buy or sell products and services in a foreign country, or have to convert profits from foreign sales into domestic currency. The remaining 95% is represented by profit or speculative transactions.
How exactly does FOREX work? FOREX transactions are based on major currencies such as Australian Dollar, Canadian Dollar, US Dollar, British Pound, Japanese Yen and Euro. The world's largest financial market operates 24 hours a day. The greatest advantage is that traders are able to respond in no time to currency fluctuations.
FOREX market is considered an over-the-counter market, because transactions are conducted either by telephone or by electronic networks, having no central exchange.
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 works with two concepts- the BID and the ASK. The BID shows you the price at which base currency can be sold and the ASK represents the price at which base currency can be bought.
If you're ready to invest money, you can start using FOREX trading platform anytime. FOREX market transactions should be treated carefully, because you can loose everything. - 23218
There are two reasons to buy and sell currencies. About 5% of the daily turnover is generated by companies and governments that buy or sell products and services in a foreign country, or have to convert profits from foreign sales into domestic currency. The remaining 95% is represented by profit or speculative transactions.
How exactly does FOREX work? FOREX transactions are based on major currencies such as Australian Dollar, Canadian Dollar, US Dollar, British Pound, Japanese Yen and Euro. The world's largest financial market operates 24 hours a day. The greatest advantage is that traders are able to respond in no time to currency fluctuations.
FOREX market is considered an over-the-counter market, because transactions are conducted either by telephone or by electronic networks, having no central exchange.
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 works with two concepts- the BID and the ASK. The BID shows you the price at which base currency can be sold and the ASK represents the price at which base currency can be bought.
If you're ready to invest money, you can start using FOREX trading platform anytime. FOREX market transactions should be treated carefully, because you can loose everything. - 23218
About the Author:
Learn more about forex trading platform. Stop by John Eather's site where you can find out all about forex trading systems and what it can do for you.
posted by X - Men @ 12:35 AM
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