Things You Should Know About Forex Made Easy
Foreign Exchange or Forex (also known as 4X) is an international exchange market in which currencies are bought and sold, sold and bought, 24/6. Forex as we know it now began in the early 1970s, when floating currencies and exchange rates were introduced.
Forex is as unique of a market as you can find because it has no external controls. While this seems like a good thing, especially because our societies all seem to be overregulated as it is, the government regulators and private watchdog groups are not as convinced.
However, many government and private sector regulators want a lot more regulation in the Forex markets. They feel that an unregulated market is irresponsible and dangerous because accounts and people can be wiped out in minutes by greedy market manipulators. With no accountability or oversight, bad things will happen (and who can argue about that?). As it stands, regulation will not come quickly. Like any market this large, there are perhaps millions of large and small players involved, and change is excruciatingly slow in the offing.
The Forex market is also a market that cannot be easily manipulated. However, there are times the "big players" can and do manipulate the market and it's wise to find out when those times are (think holidays or whenever regular Joes like you and me have more time and energy to invest). More on that later.
Forex markets trade between $1-1.5 trillion US dollars (USD) daily, every day, making it the largest liquid market in the world. Think about that figure: $1.5 trillion each and every day. Because of its sheer volume and hectic pace, one investor could not significantly affect the price of a major currency.
Liquidity in the markets means that traders or investors can open and close positions within a few seconds (yes, a few seconds!) as there are always willing sellers and buyers.
There are four major currency pairs in 4X: Euro-US Dollar (EUR/USD), US Dollar-Japanese Yen (USD/JPY), US Dollar and Swiss franc (USD/CHF), British Pound and US Dollar (GBP/USD). The first currency in the pair refers to the "base" currency. The second half of the pair is called the counter currency. The EUR/USD is the most traded pair on the exchange and is extremely liquid.
Currency pairs are normally traded as 100,000 base currency units. For instance, if you were buying USD/CHF at 0.98 you would be paying Swiss Francs (CHF) for US Dollars as follows: .98 X 100,000 units = $98,000 Swiss Francs for 100,000 USD, but don't worry because you will not be required to "pony up" $98,000 CHF to learn this game. It is a process called margin trading or trading on margin. That is an entirely different topic and worthy of pages and pages of instruction. Forex Made Easy is here to help and answer those questions. - 23211
Forex is as unique of a market as you can find because it has no external controls. While this seems like a good thing, especially because our societies all seem to be overregulated as it is, the government regulators and private watchdog groups are not as convinced.
However, many government and private sector regulators want a lot more regulation in the Forex markets. They feel that an unregulated market is irresponsible and dangerous because accounts and people can be wiped out in minutes by greedy market manipulators. With no accountability or oversight, bad things will happen (and who can argue about that?). As it stands, regulation will not come quickly. Like any market this large, there are perhaps millions of large and small players involved, and change is excruciatingly slow in the offing.
The Forex market is also a market that cannot be easily manipulated. However, there are times the "big players" can and do manipulate the market and it's wise to find out when those times are (think holidays or whenever regular Joes like you and me have more time and energy to invest). More on that later.
Forex markets trade between $1-1.5 trillion US dollars (USD) daily, every day, making it the largest liquid market in the world. Think about that figure: $1.5 trillion each and every day. Because of its sheer volume and hectic pace, one investor could not significantly affect the price of a major currency.
Liquidity in the markets means that traders or investors can open and close positions within a few seconds (yes, a few seconds!) as there are always willing sellers and buyers.
There are four major currency pairs in 4X: Euro-US Dollar (EUR/USD), US Dollar-Japanese Yen (USD/JPY), US Dollar and Swiss franc (USD/CHF), British Pound and US Dollar (GBP/USD). The first currency in the pair refers to the "base" currency. The second half of the pair is called the counter currency. The EUR/USD is the most traded pair on the exchange and is extremely liquid.
Currency pairs are normally traded as 100,000 base currency units. For instance, if you were buying USD/CHF at 0.98 you would be paying Swiss Francs (CHF) for US Dollars as follows: .98 X 100,000 units = $98,000 Swiss Francs for 100,000 USD, but don't worry because you will not be required to "pony up" $98,000 CHF to learn this game. It is a process called margin trading or trading on margin. That is an entirely different topic and worthy of pages and pages of instruction. Forex Made Easy is here to help and answer those questions. - 23211
About the Author:
Mr. Boldene is a technical writer who enjoys writing about many subjects including Forex Made Easy, Chan also enjoys referring others to his close friend's Daily Devotions at Devotions ChopChopsite.
posted by X - Men @ 12:10 AM
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