Welcome to The Ultimate Trading Guide

Trading Currency Article

Thumbnail example

This is a selection made from among articles on Trading Currency. For a permanent link to this article, or to bookmark it for future reading, click here.

Interested in FOREX Trading?

from: Jill Kane

The Foreign Exchange Market (FOREX) has no central exchange location yet it is the largest financial market in the world. It is over 3x's the size of the stock and futures markets combined and operates via an electronic network of a banks, corporations and investors.

Foreign exchange consists of a simultaneous buying of one currency and selling of another. Currency is traded in pairs, in other words, one currency is traded for another. The major currencies are:

USD - United States Dollar
EUR - Euro members Euro
JPY - Japan Yen
GBP - Great Britian pound
CHF - Switzerland franc
CAD - Canadian dollar
AUD - Australia dollar

There are 2 types of investors involved in the FOREX market.The first type of investor is the hedger. The hedger is involved in International trades and utilizes FOREX trading to protect their interest in a transaction from adverse currency fluctuations. The 2nd type of investor is the speculator who invests in currency solely for profit.

Currency prices fluctuate due to a variety of economic and political factors. The major factors are:

Interest rates
International trade
Inflation
Political stability

There are many reasons investors take a great interest in FX trading Some of the major reasons are:

No fees
No middlemen
No fixed trade sizes
Low transaction cost
High liquidity
Instant transactions
Low margin / High leverage
24 hour market
Online access via online trading platforms
Always good opportunities to trade, unlike the stock market the market is never bullish or bearish.
No one entity can control the market
No insider trading can occur

To begin trading in the FOREX market, an investor only needs a computer, a high-speed internet connection and an online trading currency account. A mini account can be opened for as little as $100.

These are some of the reasons why FOREX trading has become quite popular in recent years. For more information on getting started in FX Trading visit http://www.fx-trading-guide.com/

About The Author

Jill Kane

Interested in FOREX Trading? Find out all about this increasingly popular type of investing at www.fx-trading-guide.com.

Trading Currency News

EUR: Swiss Central Bank Surprises With Rate Cut - Global Forex Trading

Investment Markets

EUR: Swiss Central Bank Surprises With Rate Cut
Global Forex Trading - Nov 20, 2008
Even EUR/GBP, which is typically seen as a range trading currency pair had a 168 pip range while EUR/CHF had a 239 pip range. The market expected German ...
Dollar Posts Weekly Gain as Stock Plunge Spurs Haven Demand Bloomberg
Traders Renew Appetite for Risk as Obama Names Treasury Secretary International Business Times
Yen Falls on Bets Stock Gains Will Slow Carry Trade Unwinding Bloomberg
Bloomberg - Bloomberg
all 339 news articles

APEC to take united front on global economic crisis - International Herald Tribune

APEC to take united front on global economic crisis
International Herald Tribune, France - 4 hours ago
"There needs to be expanded support from the major economies to emerging economies that have difficulty in procuring foreign currency liquidity," he said. ...

Americans’ ’Hypocrisy’ in Auto Rescue Spurs Me-Too Trading Ire - Bloomberg

Americans’ ’Hypocrisy’ in Auto Rescue Spurs Me-Too Trading Ire
Bloomberg - Nov 21, 2008
One of the Americans’ biggest gripes involves Japan’s currency, which they claim is kept artificially cheap against the dollar. The Automotive Trade Policy ...