Forex trading, also referred to as FX trading or currency trading is the global, decentralized marketplace where financial establishments, businesses and regular individuals exchange currencies at floating rates. Open 24 hours a day, 5 days week along with super-high liquidity the Forex market is the world’s most traded market as it has a $5 trillion daily trading volume.
Why trade Forex with TradeFW?
What is Forex Trading?
Forex trading simply means buying one currency with another. Take for instance, the USD/JPY, (U.S. dollar / Japanese yen) when buying the pair, you are buying the USD while selling the JPY. When you are selling the pair, you are buying the JPY and selling the USD.
When currencies are paired they are presented as a rate, which is the ratio between the values of the two given currencies. For example, the rate for purchasing the pair EURUSD is 1.1892. In other words, €1 EUR = $1.1892 USD.
There are numerous currencies and currency pair combinations that are traded daily on the market. However, these pairs are separated into three primary sets – majors, minors and exotic pairs. The core difference between these pairs is their liquidity, which stems from their generated trading volume. Major currency pairs are the most popular and most liquid pairs and always feature the U.S. dollar as and another currency such as the EUR/USD and USD/AUD. Minor pairs do not include the USD, but contain the remaining major currencies such as the GBP/CHF and the EUR/GBP. Exotic pairs are not as widely traded as the majors and the minors, and consist of a major currency with the currency of a developing economy such as the USD/ZAR and the USD/SGD.
Here is a list of the popular currencies that are traded daily:
|Dollar||Buck, Greenback, Reserve Currency|
|Euro||Fiber, Unified Currency|