The Foreign Exchange Market

The market in which currencies are traded is known as the foreign exchange market. Trading with different currencies is the world’s largest market consisting of almost 2 trillion transactions every day and the market experiences a rapid growth due to the fact that investors become more and more interested. The forex market is not only the largest market in the world but it is also the most liquid, which differentiates it from other markets. Trading at the forex market is conducted over-the-counter because there is no central marketplace for currency trading. In difference to the stock market, this decentralization of the market allows traders to choose from a number of different dealers to make trades with and eases the process of price comparison. The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.

All of the trades in the foreign exchange market involve the buying of one currency and the selling of another currency at the same time. This is due to the fact because the value of one currency is determined by its comparison to another currency. The first currency of a currency pair is called the “base currency,” while the second currency is called the “quote currency.” This currency pair indicates how much of the quote currency is needed to purchase one unit of the base currency. Currency pairs can be thought of as a single unit that can be bought or sold. If one purchases a currency pair, the base currency is being bought, while the quote currency is being sold. The opposite is the fact, when the sale of a currency pair takes place. There are four major currency pairs that are traded most often in the foreign exchange market. These include the EUR/USD, USD/JPY, GBP/USD, and USD/CHF.

The firm Forex Capital Markets is an online currency trading company that offers a free demo account to traders who are new and interested in the foreign exchange market. After the registration process for a demo account, a new trader can download the online trading platform that is used by the company’s regular clients and make trades as if they were doing it with real money. The demo account is an superb chance to experiment with the foreign exchange market without the threat of loosing real money. It allows you to experience each step of currency trading including choosing currency pairs, tracking the time and dates of placed trades, deciding how much risk to take, deciding how long to stay in the trade, and when to exit the trade. Besides this it is also possible to place stop and limit orders on trades.

Information about how trading works and specifically about how to use the online trading platform can be found on the FXCM webpage. Additionally, it is possible to participate in one of the free interactive online seminars offered by FXCM. These specific seminars are useful for beginners and experienced currency traders equally. The “educational webinars,” as they are called are run by experienced financial strategists and range in topics from trading specific news events to trading the Euro. In addition to the webinars, FXCM also offers many online courses that teach investors how to trade the currency market.