The Forex market is a market in which traders and other participants buy, sell and exchange currencies. Participants in this market include central banks, commercial banks, investment banks, individual companies, hedge funds, trading firms, investors and individual traders. The Forex market is estimated to have over £4 trillion worth of transactions every single day.
The Forex market is made up of the Interbank market and the Over The Counter market (OTC). The interbank market is where large banks trade currencies for purposes of hedging, balance sheet adjustments, or on behalf of clients.
The OTC market is where individuals trade through online platforms and through brokerage firms.
The Forex market is 24 hour from Monday morning in Asia to Friday afternoon in New York, meaning it does not close overnight during the days in between.
Forex trading is done in currency pairs and the U.S Dollar is the most traded. The major Forex pairs are EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD. There are also many other minor Forex pairs as well as emerging markets currencies available to trade.
Disclaimer – Futures, CFD, Margined Foreign Exchange trading, Warrants, Options and Spread Betting all carry a high level of risk to your capital. Only speculate with money you can afford to lose. Futures, CFD, Margined Foreign Exchange trading and Spread Betting may not be suitable for all customers, therefore ensure you fully understand the risks involved and seek independent financial advice if necessary.
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