Forex Trading

Forex Trading Forex Market with its record daily turnover of more than USD 4 trillion is the world’s largest financial market where exchange of currencies takes place between buyer and seller. Simply, it is the purchase and sale of a country’s currency for another country’s currency. It is 50 times larger than NYSE (New York Stock Exchange) in terms of traded value. Since Forex is done in currency pairs, traders make profit from the rise or fall in currency values between two currencies. Forex market sleeps little when compared to other markets with trading hours between 22:00 GMT (Sunday) and 22:00 GMT (Friday).

Growth in global Investments Trading

Forex Trading – Features
  • Exceptional liquidity
  • Geographically Dispersed
  • 24x5 market
  • Low Margin requirement
  • High Leverage
  • Ease of trade
  • High volumes
  • Low transaction costs
  • Gain profits from rising and falling markets
Forex Market – Major players
  • Commercial banks
  • Securities Dealers
  • Multi-national Companies
  • Investment Management Firms
  • Hedge Funds
  • Pension funds
  • Insurance companies
  • Mutual funds
  • Retail Forex Traders – Forex Brokers & Market Makers
  • Non-Bank Forex Companies
  • Forex Money Transfer / Remittance Companies
  • Bureaux de Change  or Currency transfer companies
Forex Rate – Major influences
  • Economic Growth rate
  • Central bank Policy decisions
  • Industrial Production rate
  • Inflation rate
  • Monetary Policy
  • Fiscal Policy
  • Employment rate
  • Purchasing Manager Index
  • Trade Balance
  • Retail sales
  • Durable & Non-durable goods order
  • Housing Starts
  • Natural Disasters
  • Political factors
  • Global Issues such as growth, recession, depression
  • Market Psychology such as technical studies
Forex Market –Types
  • Spot Market
  • Futures market
  • Forward market
  • Swaps
  • Options