• New York : 07:22 PM
    • London : 12:22 AM
    • Tokyo : 09:22 AM
    • Sydney : 11:22 AM
    • Beijing : 08:22 AM
WHAT’S THE FX MARKET?
The currency trading (Foreign Exchange, Forex, FX) market is the most traded financial market in the world. In the Forex market, currencies are traded by commercial banks, corporations, institutional investors, hedge funds and individuals like you, typically via brokers. In simple terms, it is where you can buy and sell currencies, simultaneously. The way it works is much like the process of currency exchange at airports or hotels where you can exchange the currency you deal with for the local currency. More than anything else, the Forex market is a trader’s market. It’s a market that’s open around the clock, enabling traders to act on news and events as they happen.

HOW DOES IT WORK?
Forex traders will buy a currency pair if they expect its exchange rate will rise in the future and sell a currency pair if they expect its exchange rate will fall in the future.

WHAT IS AN EXCHANGE RATE?
The FX market is decentralized, which means that there is not centralized exchange where any operation is done. Hence, the values of different currencies are determined. Different market participants from different locations around the world conduct the transactions. The exchange rate between two currencies is subject to constant change. For example, on January 3, 2011, one euro was worth about $1.33. By May 3, 2011, one euro was worth about $1.48. The euro increased in value by about 10% relative to the U.S. dollar during this time.

WHY DO EXCHANGE RATES CHANGE?

Currencies trade on an open market, just like stocks, bonds, computers, cars, and many other goods and services. A currency’s value fluctuates as its supply and demand fluctuates, just like anything else. The noticeable benefit of the forex market is that you can open a position at any point in time (subject to available liquidity). Which means that you can make (or lose) money when the market is bullish (going up) or bearish (going down).