What is Forex? | We have 469 free forex articles/answers for you.
Latest Articles
Forex Exchange Rate - How Does It Get Calculated?In the Forex market the value of two separate currencies and how they relate to one another is what is known as the Forex exchange rate. Usually the Forex rate is how much of one currency is needed to buy a unit of another. Knowing the basics...
FOREX Trading Strategies
FOREX Trading Strategies To be a successful FOREX trader you need to develop and adhere to a trading strategy. There are many different strategy's available and no particular one is good for all traders; rather, each trader needs to develop...
"How To" Start Trading The Forex Market? (Part 2)
Why is FOREX trading so popular? Because you can trade from anywhere. From your kitchen table, bedroom, garage or from the nearest Starbucks coffeehouse ( most of them have wireless Internet connection). If you have or like to travel, take your...
Forex Profits
The Forex Market—What, When and Why?Forex, FX and the Forex market are some common abbreviations for the Foreign Exchange market. Actually it is the largest financial market in the world, where money is sold and bought freely. In its present condition the Forex market was launched in the seventies, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from demand and supply. As far as the freedom from any external control and free competition are concerned, the Forex market is a perfect market.
With a daily turnover of over trillions of dollars, the Foreign Exchange market conducts more than three times the aggregate amount volume of the United States Equity and Treasury markets combined. The Forex market is an over-the-counter market where buyers and sellers conduct foreign exchange business using different means of communication.
Unlike other financial markets, the Forex market has no physical location or central exchange. Since the Forex market lacks a physical exchange, the market trades continuously on a 24-hour basis, moving from one time zone to the next, across each of the world’s major financial centers every day. Trillions of dollars of foreign exchange activity takes place every day. From 1997 to the end of 2000, daily forex trading volume surged approximately from US$5 billion to US$1.5 trillion and more (according to various recent studies it has touched $1.7 trillion per day and dwarfs all other markets for trading in size and volume). It is really difficult, if not impossible; to determine an absolutely exact number because trading is not centralized on an exchange. But one thing is for sure that the Forex market continues to grow at a phenomenal rate.
Before the advent of Internet and ecommerce, only big corporations, multinational banks and wealthy individuals could trade currencies in the Forex market through the use of the proprietary trading systems of banks. These systems required as much as US$1 million to open an account. Thanks to advancements in online technology, today investors with only a few thousand dollars can have access to the Forex
market 24 hours a day and around 5 ½ days of a week.
The Forex market is a nonstop cash market where currencies of nations are traded, typically via brokers called forex brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets while traders increase or decrease value of an investment upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events so it is also considered to be a highly volatile and fragile market too. Conditions of the Forex market never remain the same they changes every second.
The foreign exchange market dwarfs the combined operations of the New York, London, and Tokyo futures and stock exchanges. According to its size and scope it is many times larger than all other markets. Stats shows that spot transactions and forward outright Forex trading take place in the inter-bank market. 51% of the market is in spot Forex transactions, followed by 32% in currency swap transactions. Forward outright Forex transactions represent another 5% of this daily turnover, with options on ‘interbank’ Forex transactions making up another 8%. Therefore the inter-bank market accounts for 96% of the global foreign exchange market, with the remaining 4% being divided among all the global futures exchanges.
For traders, Forex trading provides an alternative to stock market trading. While there are thousands of stocks to choose from, there are only a few major currencies to trade (the Dollar, Yen, British Pound, Swiss Franc, and the Euro are the most popular). Forex trading also provides a lot more leverage than stock trading, and the minimum investment to get started is a lot lower. Add to that the ability to choose flexible trading hours (forex trading goes on 24 hours a day) and you have the reason why so many stock traders have flocked to day trade currencies.
About the Author
Anthony Trister is a currency trader and is an owner of OneDayTrades which offers free, mechanical forex signals and an automated trading program for those wanting to trade forex. Free access available here: http://www.onedaytrades.com
Written By: Anthony Trister
 Reuters | WORLD FOREX: Dollar Weakens Slightly On Euro After Trade Data Wall Street Journal NEW YORK (Dow Jones)--The dollar weakened slightly against the euro Thursday, after US data painted a mixed picture ... FOREX-Dollar falls vs yen and euro after trade data FOREX-Dollar gains vs yen after US retail sales data Forex trends: recovering vs dollar and yen, euro drops vs pound |
WORLD FOREX: Dollar Gains Ground After Strong US Retail Sales Wall Street Journal "The data was dollar positive," said Jacob Oubina, a currency strategist at Forex.com in Bedminster, NJ "It's going to raise [US's] first quarter GDP up ... |
FOREX-Dollar little changed vs majors in volatile trade Reuters ... market analyst at Easy Forex in Chicago. "If anything, traders appear to have a preference to sell the euro on rallies." The dollar JPY= was little ... |
Reuters | WORLD FOREX: Dollar Surrenders Some Gains To Euro, UK Pound Wall Street Journal TORONTO (Dow Jones)--The dollar is higher against the euro and the UK pound Tuesday but has ceded some of its gains as ... FOREX-Euro, sterling pressured by fiscal concerns FOREX-Yen firm, euro and pound hurt by fiscal worries Forex: Several Indicators That Will Move Currencies |
 RTE.ie | WORLD FOREX: Yen Down Vs Dollar On Hatoyama Remarks MarketWatch TOKYO (MarketWatch) -- The yen fell against the dollar and euro in Asia Friday as Japanese Prime Minister Yukio Hatoyama's comments ... Daily Forex Overview |
 FXstreet.com The Forex Market | Forex - Dollar mixed vs. rivals after jobs, trade gap data Forex Pros Forex Pros – The US dollar was mixed against most other major currencies on Thursday, following a disappointing report on initial US jobless claims and ... Forex: US Dollar mostly lower today as EUR/USD hovers near 1.3600 Forex - Dollar mixed vs. rivals as US jobs data eyed Forex - Dollar climbs against yen, nearing 2-week high |
 Forex Flash | WORLD FOREX: Dollar Up Vs Yen, Euro Little-Changed Post Jobs Wall Street Journal NEW YORK (Dow Jones)--The dollar rose against the yen, but the euro recovered much of its initial loss against the ... WORLD FOREX:Dollar Hits 2 1/2-Month Low Vs Yen; US Yields Down FOREX-Yen dips, dollar supported ahead of payrolls Forex trends: dollar gains some ground across the board, sliding vs yen |
FOREX-Dollar rises vs yen as US jobs data boosts optimism Reuters NEW YORK, March 5 (Reuters) - The dollar soared against the yen on Friday after a government report showed US employers cut fewer jobs ... WORLD FOREX: Dollar Ends Broadly Lower; Canada, Australia Lead WORLD FOREX: Euro Falls Vs Dollar After RBA Says Europe A Risk FOREX-Euro steady vs dollar; US jobs data awaited |
 Earthtimes (press release) | WORLD FOREX: Dollar At 2-Week High Vs Yen On Asia Stock Rises MarketWatch TOKYO (MarketWatch) -- The dollar rose to a two-week-high against the yen Monday in Asia, as higher regional shares bolstered ... FOREX-Yen slips on BOJ story, sterling stays heavy FOREX-Yen down on concern ahead of BOJ, pound slips GBP and JPY Under Selling Pressure |
 FXstreet.com The Forex Market | Forex: Dollar dips on weaker than expected jobless claims NASDAQ FXstreet.com (Barcelona) - The Dollar has been damaged by a weaker than expected decline on weekly claims, and the Greenback has ticked down against its ... FOREX: Euro May Not Have the Juice; EUR/USD, FXE Forex: USD/JPY eases below 91.00 after consumer sentiment data Forex: USD/JPY retreat contained by 90.15 support |
