Introduction to the Forex Market

Introduction to the Forex Market
The foreign exchange market, also known as "Forex" or "FX" market is the largest financial market in the world with average daily turnover of U.S. $ 1,900,000,000,000th "Foreign Exchange" is the simultaneous buying of one currency and selling another. Currencies are traded in pairs, for example Euro / US Dollar (EUR / USD) or U.S. Dollar / Japanese Yen (USD / JPY).
There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency. The other 95% is trading for profit, or speculation.
For speculators, we believe the best trading opportunities are the most commonly traded (and therefore most liquid) currencies, called "majors". Today, more than 85% of all daily transactions involve trading of the Majors, which include the U.S. Dollar, Japanese Yen, Euro, British pound, Swiss franc, Canadian and Australian dollars Dollar.A true 24-hour market from Sunday 5:00 pm ET to Friday 17:00 pm ET, forex trading, begins each day in Sydney, and moves around the world as a working day begins in each financial center, first to Tokyo, London and New York.
Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political developments at the time they occur - day or night.
The foreign exchange market is considered over the counter (OTC) or 'interbank / interdealer "market, due to the fact that transactions are conducted between two partners over the telephone or via an electronic network. Trading is not centralized on an exchange, as well as stock and futures markets.