FOREX THE FX MARKET

The Forex market is nothing but a foreign exchange market or just simply by two letters FX market.This market is most effective securities market on the planet and can be considered as a heart of global securities. It represents the largest financial market in the world by volume.over $1.9 trillion dollars moves trough Forexmarket every single day in the form of currencies moving from bank to bank,business to business,or even from individual to individual. .Forex trading has gained popularity around the globe in the past decade.

FOREX TRADING

Forex trading means trading of currencies, between banks, business organizations,currency speculators,multinational corporations, and even the other financial markets.The average trade per day is several times larger than all US markets.This trading is done from all around the world, with little or no hard cash changing hands.

In Forex trading, the aim is to exchange one currency for another in the expectation that the currency you brought will increase in the value compared to the one that you sold.Currencies are traded through a Forex broker and the currencies are quoted in pairs, for example (EUR/USD)
In this market currencies are exchanged in the floating exchange rate system. The Forex market has no central exchange and has no trading floor. It is considered as an “over the counter”(OTC) market and is run electronically with in a network of banks known as the inter bank market.

FOREX MARKET vs OTHER MARKET

1)The FX market runs with flexible timing running continuosly 24 hours from Sunday afternoon to Friday afternoon.

2) The profit margins or growth in FX market in comparison with other financial market are very high .

3) Previously the forex interbank market was not available to small investors.due to recent advances in technology , Forex brokers have emerged to cater for the needs of almost any individual with the use of online Forex currency trading platforms.

TYPES OF CURRENCIES IN FOREX

To make things even better online forex traders can only choose between 16 different currencies,allowing them to keep an eye on every currency for which they are speculating. The given below is the most traded currencies in the FX market.
1.United states dollar USD
2.Eurozene euro EUR
3.Japnese yen JPY
4.British pound sterling GBP
5.Swiss franc CHF Fr
6.Australian dollar AUD $
7.Canadian dollar CAD $
8.Swedish krona SEK Kr
9.Hong kong dollar HKD $

RETAIL TRADERS

Any individual traders like you and I are known as “retail traders” and must go through retail brokerage firms in order to buy and sell currencies on the foreign exchange market.Today,however, you can buy and sell currencies at the click of the button,in much the same way as you buy and sell stocks.Everything is automated and linked up electronically.The main objective of this blog is to guide retail investors in aspects of how to select a broker, currencies, and complete money management.Some companies now charge minimal fees and offer leverage as high as 100:1,which means that you can earn a profit of $100,000 worth of trading, even if you have only $1000 to trade. Retail forex brokers or market makers will work on behalf of the retail clients only handle a tiny fraction of forex market. One retail broker estmates the total retail volume at $25-50 billion daily,which approximately 2% of the whole market.