Global foreign exchange trading is also referred to as Forex. A lot of money can be made this way by investing in currencies. The abbreviation Forex stands for Forex Exchange. There are seven most traded currencies. These are the Japanese Yen, the Australian Dollar, the US Dollar, the Canadian Dollar, the British Pound, the Euro and the Swiss Franc. There is a lot of trading in Forex worldwide. This is the trading of different money currencies. It is one of the fastest growing trading markets. Billions of euros are involved every day. This is because the foreign exchange market is huge. With Forex, currencies are purchased from a specific country. The hope is that these will subsequently increase in value, after which the investor can sell the currency at a profit. or online currency trading, is the fastest growing trading system on the internet. The abbreviation Forex stands for Foreign Exchange, or foreign money. The aim is mainly to predict which type of money will rise or fall in value within a certain period and to respond accordingly.
Many investors are involved in Forex. They certainly do this in periods when investments and options are doing less well. They then change course and try to find methods that can make money more effectively and that have a greater chance of success. Approximately 3 trillion dollars are traded in the Forex market every day. That is more than 4 trillion euros. The advantage of Forex is that the market is in principle available 24 hours a day. Most of the trade takes place in four cities. These are British London, Japanese Tokyo, Australian Sydney and American New York. Trading starts at approximately 11:00 PM Dutch time. The stock exchange in Sydney opens at that time. Trading can continue until the New York stock exchange closes at 11:00 PM Dutch time on Friday evening.
Investing in foreign currencies
Most of the trading usually takes place from 2:00 PM to 6:00 PM. This is because the London and New York stock exchanges overlap at that time. There are some major currencies that are heavily traded. There are seven majors. Those are different currencies. Then currencies of one kind are bought into currencies of the other kind. 85 percent of all transactions belong to this group of majors. These majors are the US dollar, the Australian dollar, the British pound, the Canadian dollar, the Euro, the Japanese Yen and the Swiss Franc.
Currency trading always takes place in pairs. A currency is the base currency. The other currencies are sold with this currency. The currency that is purchased is called the counter currency. Another indication for the counter currency is quote or couter. The most traded combination is the GBP/USD. Other commonly traded pairs are the AUD/USD, the EUR/USD, the GBP/USD, the USD/JPY, the USD/CAD and the USD/CHF. There is often a small difference between the asking and asking prices. These are the prices at which a particular currency is bought and sold. It is through this small difference that currency traders make their profits. Sometimes transaction costs are also charged by the bank or broker. It is good to take this into account when you start trading in currencies.