The foreign exchange currency market makes over five trillion dollars on an average daily trading volume basis, beating any other global markets today. The market is open for all types of currencies around the world with the clause that the trade is made in pairs of currencies. All the world’s stock markets in total don’t come close to revenue generated by forex. Transactions in forex are all about exchange. A traveler has already done forex trading on terms that he exchanges one time of currency for others. The rates in foreign exchange change dynamically with supply and demand. Both upstream and downstream trading is possible which makes forex stand out from the rest of the trading platforms. It isn’t hard to find a buyer or seller of currencies since the market is vast.
Forex trade management and major currencies involved
There all sorts of curries that can be used to invest in forex. With over eighty pairs to choose from, it is important to be selective and aware of the ever-changing plots.
The most traded pair of currencies are termed as majors and they encompass about eighty-five per cent of the total foreign exchange market. The major pair is:
- EUR/USD
- GBP/USD
- USD/CHF
- USD/CAD
- USD/JPY
- AUD/USD
- NZD/USD
Currency pairs excluding us dollars are known as cross currency pairs.
- GBP/JPY
- JPY/CAD
The currency pairs made from one major currency and one growing economy are known as exotic currency pair. such as:
- USD/ZAR
2.USD/HKD
Percentage in point or commonly known as PIP is the movement a fourth decimal digit unit in a rate. There many exceptions to pips such as the Japanese yen where the movement is in the second decimal digit.
The best platform for a forex trader to understand the dynamics of forex trading
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