Forex market

Forex market

Forex market

The foreign exchange market (also known as forex) is one of the largest markets in the world. With a daily turnover of $4 million is easy to see that. Products traded on forex include currencies, currencies future, currency swap and forex swap. The daily turnover is mostly based on foreign exchange swaps (around $1.8 million daily) and on spot transactions (about $1 million daily).

More than half of market transactions take place between large commercial banks and investment banks. Other participants include commercial companies, central banks, investment funds and forex brokers.

Top five most traded currencies are: US Dollar (USD) with 40% of the daily turnover, Euro (EUR) with 18%, Japanese Yen (JPY) with 8.5%, Pound Sterling (GBP) with 7.5% and the Swiss Franc (CHF) with 3.5% of the daily turnover.

A very unique feature of the forex market is the trading period which is non top during week days. Forex is a global market, having several trading centers all over the world. Main forex trading centers are Tokyo, Hog Kong, Singapore, London and New York. Due to the geographical dispersion of the trading centers, when a trading center closes the next one is opening following the same cycle Asia-Europe-America every day.  Except the weekends, forex market is opened from 20:15 GMT on Friday to 22:00 GMT on Sunday.

At first the forex market was very exclusivist but in the last few years, thanks to the internet expansion and to the online forex brokers, forex market is now accessible to everyone. With only $50 you can start trading currencies online just like a professional forex trader.

Responses are currently closed, but you can trackback from your own site.

Comments are closed.