Forex Currency Trading is the biggest financial activity in the world, a few years ago, was mainly an activity for large financial institutions. In now days, retailers and individuals are willing to get information and invest in this fascinating market.
Unlike other kinds of market, Forex Currency Trading, it is not controlled by any governing body, all members’ trade based on credit agreements with each other. This kind of arrangement works well in practice as self regulation provides very effective management over the market.
When you trade currency, you will always trade in pairs, and you will always be “short” in one and “long” in the other. The majority of traders trade with the four majors currencies, which are:
- EUR/USD (Euro/dollar)
- USD/JPY (Dollar/Japanese yen)
- GBP/USD (British Pound/dollar)
- USD/CHF (Dollar/Swiss franc)
There are also, commodity pairs, which are:
- AUD/USD (Australian dollar/dollar)
- USD/CAD (Dollar/Canadian dollar)
- NZD/USD (New Zealand dollar/dollar)
In the market are also factors that might affect trading. Some of those factors are: Economical, which includes economic policy comprises government and monetary policy, government budget deficits and balance of trade levels and trends, inflation levels and trends, economic growth and health and productivity of an economy.
Political, different kinds of conditions can affect on currency markets, such as, internal, regional and international circumstances. Exchange rates are vulnerable to political instability; it sometimes can have a negative effect on a nation´s economy.
Market psychology, It also, influence the foreign exchange market in ways, such as, flights to quality, long term trends and also technical trading considerations.
Forex Currency Trading has tools for you to monitor the market that affect your positions, remember to use the charts, which are indispensable to improve and keep track of your trading, and also keep track of Forex News which provides breaking news on economic reports that influence the market. It’s very important to maintain yourself update, as this is the most liquid and fluid market in the world. It trades 24 hours a day from 5pm EST Sunday to 4pm EST Friday. Therefore is really important to know events from around the world that might affect any trading.