Forex is an over-the-counter (OTC) marketplace where the currencies of the world are traded. In contrast to other prominent financial centers, forex facilitates trade without a centralized exchange, implementing an exclusively digital platform. Limited barriers of entry, ease of transaction and high market liquidity are its calling cards.
Easily the world's largest market, the average daily traded volume in forex dominates all other global marketplaces. For April 2016, daily volume measured more than US$5 trillion in value, according to BIS. Of that amount, trade of major global currencies such as the United States dollar (USD), euro (EUR), Japanese yen (JPY) and British pound (GBP) accounted for a majority of the trading activity. Institutional investors, retail traders, and central banks and governments satisfy their needs for currency exchange using forex.
Technical analysis and charting are key elements in the active trade of currencies on the forex market. Exchange rate volatilities are studied intensively using Japanese candlestick charts, support and resistance levels, pivot points and more. Various oscillators and momentum indicators are used to predict possible direction and strength of future price movements.
Vast numbers of short-term traders and long-term investors consider forex to be an ideal place to seek opportunity. Profiting from various arbitrage strategies, rollover and short-term scalping operations are common ways an individual can seek to earn money on a daily basis.
Placing price action into a manageable context is an essential part of crafting strong trading decisions. To accomplish this task, many traders rely upon technical analysis. Through the study of…
Political uncertainty is a key forex market driver, stimulating participation, order flow and volatility. Whether it's a forced regime change or democratic election, politics can quickly sway currency valuations around…
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In the financial marketplaces of the world, there are numerous different styles and trading methodologies employed with the goal of achieving profitability. One of the most prominent forms of trading…
Day traders come in all shapes and sizes, with the aspiration of profit often being the only common ground among them.
An ROI (Return on Investment) is a calculation that tells an investor how well an investment is performing over time.
Since 1788, every fourth year has brought an election for the Presidency of the United States. During such years, candidates from all walks of life dedicate their time, money and…
Historically, the outbreak of a rapidly spreading and life-threatening virus can quickly send global markets into chaos. Negative economic consequences are typically felt as trade and travel restrictions, as well…
As the world's largest financial market, the forex attracts millions of participants from around the globe on a daily basis. The result is a highly liquid, diverse trading venue that…
The best time to trade equities, currencies and futures is unique to each product. Periods of enhanced market participation often create optimal liquidity and volatility.
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