Until the advent of powerful internet trading software and technologies, Forex or FX, was primarily the domain of bank, financial institutions, and multinational corporations.
But times have changed. The FX market is now a hour market for almost 7-days a week that does not depend on business hours of foreign exchanges; but rather, it is connected via information technology platforms among global banks which means there is no physical location and no central exchange.
Since, the FX market is decentralized, with activity taking place on a variety of platforms and exchanges, the top of the trading hierarchy are the primary markets, which have historically only been accessible to banks. These primary markets allow banks to offset FX exposures due to their clients' flows as well fulfill their own trading objectives. Relatively recent additions to these secondary markets have been portals, which are online markets where customers can trade FX with one or many banks.
Today, prices are instantly tradable because of the advent of powerful internet trading software. This new technology has driven the emergence of another type of FX market - the retail trading platform which is the focus of this overview section. Because of the size of daily transactional volumes, the FX market is not only stable but extremely liquid. Currency is effectively a commodity whose value can change against other currencies, as well as, other assets, such as precious metals and oil.
By buying or selling a currency, FX Traders look to earn a profit from the movement in the FX currency rate. The beauty of FX is that the cost of trading is also low. This means that retail trades can be transacted for the extreme short-term, literally seconds, as well as, for a longer duration depending upon trader strategy. In an FX transaction, one currency is sold in exchange for another one. The rate expresses the relative value between the two currencies.
The rate can be inverted. Shortly after, the rate is 1. Completely customizable, feature-rich trade station with an easy to use, intuitive interface. Forex Trading The Forex market today is a global dynamic market Until the advent of powerful internet trading software and technologies, Forex or FX, was primarily the domain of bank, financial institutions, and multinational corporations.
Forex Retail Trading Currency is effectively a commodity whose value can change against other currencies, as well as, other assets, such as precious metals and oil.More...