What is currency trading?

The abbreviation of the Forex market, or the English currency market, is considered one of the largest financial markets in the world with trading volumes of over $ 4 trillion. Day.

Exchange one currency for another and often make a profit.

Currency pair and transaction price

Coins are traded in pairs.

The trading price of a currency pair is the value of those currencies that can be purchased in units of the base currency.

Example:

Apart from the euro, it is the most common currency pair traded on the market.

If you search for Euro for the first time, you will find out how much dollar (currency conversion) can be purchased for 1 Euro (base currency).

If the conversion from euros to 1.2356 is 1.2356, you can buy $ 1.2356 for 1 euro.

If the exchange rate is trending, it means that the base currency is strengthened by a relatively high currency.

If the exchange rate is down, it means that the base currency is weaker than the secondary currency.

Money market

Over 4 trillion daily market liquidity. The dollar, it is safe to say that the market is simply the most liquid in the world.

Basically, this means you can buy virtually any money you like and the market is open at all times.

Market time is the most important factor in determining the benefits of forex trading.

The forex market is open 24 hours a day, 7 days a week.

Trading begins with a global pattern, starts in New Zealand, Australia, Asia, Europe, and finally in the United States and can be traded any day of the week, Monday to Friday.

What are the factors that influence the forex market?

There are several factors that influence the exchange rate in the forex market. For example, the political and economic stability of each country and monetary policy.

However, because forex trading is simple, speculation largely affects market price volatility.

When a trader expects a particular currency to strengthen or weaken due to polygon reasons or events, it trades as supply and demand for the expected currency changes in the market and changes the market price.

The more people wait for money to move in a particular direction, the greater the impact on market prices.

Forex trading always sells currency. It buys and sells one currency in another.

For example, if you expect the British Pound to fall against another, buy British Pound against another.

If you anticipate the opposition (and therefore hope for volatility), sell the British pound against this time.

With this in mind, it is possible to take a position in the direction that the market is always moving, thus increasing the potential for trading opportunities.