What is Forex?
Foreign exchange market, also known as Forex, is a gigantic financial market that allows traders to exchange currencies in order to gain profit. Every day over $6 trillion worth of currencies are traded across the world at forex market, dwarfing the stock market. Basically, forex is the buying and selling of currencies – to buy one currency, you must sell another currency. Exchange rate is the price of one currency in terms of another currency, and if your predictions about the increase or decrease of exchange rate are correct– you gain profit. Otherwise, if it goes in the opposite direction than predicted, you will make a loss. Currencies are traded in major financial centers across the world, including London, New York, Tokyo and Hong Kong.
What to Trade in Forex?
The forex exchange market determines the relative values, also known as an exchange rate, of the majority of different currencies. The price of a currency is actually a reflection of what the market thinks about the current condition of a country’s economy compared to other economies. Most common currencies that are being traded are called majors and here is the list of them:
- USD (USA Dollar)
- EUR (Euro)
- JPY (Japanese Yen)
- GBP (Great British Pound)
- CHF (Swiss Franc)
- CAD (Canadian Dollar)
- AUD (Australian Dollar)
- NZD (New Zealand Dollar)
There are also currencies from developing countries which are called exotics, and they are extremely liquid with very high spreads. Besides these currencies, there are also commodities, index CFDs and cryptocurrency CFDs that can be traded.
What is the Advantage of Forex Trading?
Due to a daily turnover of trillions of dollars, forex is the most liquid financial market that is open 24/5. There is always a buyer when you want to sell, and there is always a seller when you want to buy. This advantage allows traders to gain profit at any time of a day, and since forex market works over-the-counter (OTC), this gives traders flexibility of trading from anywhere in the world! There is no need for special equipment, traders can use mobile phone or laptop for trading and analyzing charts, which allows them to easily follow changes in this market.
Why trade Forex with Finveo?
- Finveo offers some of the most competitive spreads.
- Competitive Spreads; Enjoy competitive spreads on EURUSD and GBPUSD.
- 24/5 Forex Trading; 24 hours a day, 5 days a week. Flexible Long/Short trading.
- Trade 60+ Currency Pairs; We enable our traders to implement their own trading strategies based on 44 forex trading currency pairs, with localised expert support available 24/5.
- Low Commissions; Tight, competitive spreads – meaning you pay less to open a position.