No Result
View All Result
Friday, June 2, 2023
  • Login
FXVNPRo
ADVERTISEMENT
  • Home
    • Advertising Promotion
    • Best Brokers 2022
    • Economic Calendar
    • Contact Us
  • Forex Brokers Review
  • Learn To Trade
    • Forex Trading Strategies
    • Forex Trading Indicators
    • Promotional Content
    • Forex/CFDs/Cryptos News
  • Forex Promotions
    • Best Promotions
    • Forex No Deposit Bonus
    • Forex Demo Contest
    • Forex Cashback Rebate
    • Forex Deposit Bonus
    • Forex Live Contest
    • Affiliate Program
    • Other Promotions
  • Expert Advisors
    • Expert Advisors Price
No Result
View All Result
  • Home
    • Advertising Promotion
    • Best Brokers 2022
    • Economic Calendar
    • Contact Us
  • Forex Brokers Review
  • Learn To Trade
    • Forex Trading Strategies
    • Forex Trading Indicators
    • Promotional Content
    • Forex/CFDs/Cryptos News
  • Forex Promotions
    • Best Promotions
    • Forex No Deposit Bonus
    • Forex Demo Contest
    • Forex Cashback Rebate
    • Forex Deposit Bonus
    • Forex Live Contest
    • Affiliate Program
    • Other Promotions
  • Expert Advisors
    • Expert Advisors Price
No Result
View All Result
FXVNPRo
No Result
View All Result
Home Learn To Trade

What is Forex Trading? (Part 1)

fxvnpro by fxvnpro
April 29, 2022
in Learn To Trade
38
FPMarkets
0
SHARES
19
VIEWS

Trade Forex with a Global Regulated Forex Broker!

Trading forex involves buying one currency and selling another simultaneously. Through careful analysis, traders predict the potential direction of currency prices and attempt to capture gains based on price fluctuations. There is no centralised exchange for forex trading. Rather, it takes place electronically or online, between networks of global computers. The market is open 24 hours a day, 5 days a week.

Keep in mind that timings in some countries, like Australia, the US and UK, shift to/from daylight savings time in October/November and March/April. So, plan your trades accordingly. Market liquidity for currency pairs depends on the forex trading sessions. For instance, the EUR/USD pair shows a lot of movement and liquidity during the confluence of the London and New York sessions. The AUD/USD pair shows maximum movement in the Tokyo and London sessions. Once you know when to trade, the next step is to learn the jargon. So, here are some terms and concepts you will come across in the market.

fpmarkets

A Brief History of Forex

The exchange of currencies dates back to 600BC when the first official currency was created. Fast forward to today and the forex market has become the largest financial market in the world. The timeline below highlights key moments in the journey of forex.

600 BCKingdom of Lydia introduces coins made of gold and silver.
618 ADTang dynasty in China created the paper note.
1661 ADThe first banknote ever printed in Europe is produced in Sweden.
17th centuryAmsterdam becomes home to the first forex market ever created.
1819 ADEngland adopts the gold standard with the government guaranteeing to redeem any amount of paper money for its value in gold. The United States followed suit in 1834 before other major countries (France, Germany and others) in 1870.
1946 ADFollowing multiple World Wars, the gold standard system breaks down. It is replaced by the Bretton Woods System. The US Dollar is established as the world’s reserve currency.
1973 ADOfficial switch to the free floating system.
1996 ADBirth of online brokers.
2005 ADMetaTrader 4, a revolutionary trading platform is released. It is specifically designed for forex traders and features real-time pricing.
TodayDaily forex turnover figures exceed more than $5 trillion per day.

How Do Forex Markets Work?

Forex is the most popular over-the-counter (OTC) market. In forex, currencies are bought and sold through a network of banks. As there is no exchange, forex trading is decentralised and trading can take place 24 hours per day. There are 4 main trading sessions, namely Sydney, London, New York and Tokyo.

The most popular forex market type is the spot forex market. In forex, spot trades involve the exchange of currency pairs electronically using an online trading platform. Other market types include the forward forex market and futures forex market.

What is a Base and Quote Currency?

Currencies are denoted in 3lettered ISO codes. Examples of how major currencies are denoted are USD (US dollar), AUD (Australian dollar), EUR (Euro), JPY (yen) and GPB (British Pound).

fpmarkets

In foreign currency trading, currencies are quoted in pairs. When you see a currency pair, the first currency is called the base currency and the second currency is the quote currency or counter currency. For instance, say the EUR/AUD is trading at 1.6163. This means to buy 1 unit of Euro, you will need $1.6163 Australian dollars.

What Moves the Forex Market?

There are a number of factors that have an impact on the forex market. They can split into two categories; market participants and macroeconomic factors.

Market Participants

  • Super Banks: As it is decentralised, it is the world’s largest banks that determine the exchange rate. Global banks such as Barclays, HSBC, Citi, JPMorgan and Deutsche Bank are among the biggest traders of forex.
  • International Companies: Large global corporations are involved in the foreign exchange market for the purpose of doing business. If an Australian-based company is selling products in the United States they will have to trade USD to AUD in order to return their income back home.
  • Retail Traders: Refers to individuals who trade their own money in order to make a profit. Easier access to the forex market through online brokers and advanced trading platforms has resulted in retail traders accounting for a growing proportion of the forex market.

Economic & Macroeconomic Factors

  • Central Banks: Macroeconomic statistics such as inflation have a significant impact on forex markets. Governments and central banks such as the Federal Reserve meet on a regular basis to evaluate the status of their respective economies, set interest rates and monetary policy – all of which have a direct impact on forex markets.
  • Capital Markets: The prices of stock, bond and commodity futures also have an influence on foreign exchange markets.
  • International Trade: Figures relating to the trade numbers of a country have an impact on the value of currency. Trade deficits and surpluses will be reflected by price movements in the forex market.
  • Politics: This is particularly the case around key political events such as elections and results in high levels of volatility in the forex market. This is evident by historical events such as Brexit in the United Kingdom and numerous presidential election campaigns in the United States.

How does Forex Trading work?

Forex trading involves simultaneously buying and selling two currencies. For example, if you are buying the EUR/JPY, it means you’re buying EUR by selling JPY and if you’re selling the pair, you’re buying JPY by selling EUR.

Advancements in technology now allow investors to access the foreign exchange market via online brokers. This is done using forex trading platforms such as MetaTrader 4, MetaTrader 5 and Iress. Read more on How Do I Trade Forex?

The rise in online trading has paved the way for using CFD trading. These are leveraged products which allow traders to open a position with an initial investments that is only a fraction of the value of the full trade.

Read What is Forex Trading? (Part 2)

Post Views: 909

Related posts:

FPMarketsWhat is Forex Trading? (Part 2) KridexReview Kridex OctaFXReview OctaFX
Tags: Base and Quote CurrencyForex MarketGlobal Regulated Forex BrokerHistory of ForexWhat is Forex Trading
exness
Previous Post

Review ADS Securities

Next Post

Review FPMarkets

fxvnpro

fxvnpro

Next Post
FPMarkets

Review FPMarkets

Comments 38

  1. Pingback: FPMarkets
  2. Pingback: Top 15 risk management tips for forex traders
  3. Pingback: Best Forex Trading Strategy Educational Video
  4. Pingback: Cashback Program | MultibankFX
  5. Pingback: Free VPS For Faster Trading! | Kridex
  6. Pingback: Get 200% Deposit Bonus | Traders Trust
  7. Pingback: Trade With Lightning Fast Connection | Traders Trust
  8. Pingback: The 11th Anniversary Trading Competition | Traders Trust
  9. Pingback: UTRADE Singapore
  10. Pingback: What is Forex Trading?
  11. Pingback: Corporate earnings in focus
  12. Pingback: Get 200% Deposit Bonus | Traders Trust
  13. Pingback: What is Forex Trading? (Part 3)
  14. Pingback: Review Tiomarkets
  15. Pingback: Cashback Rebate Offer | Capital Street FX
  16. Pingback: Tifia
  17. Pingback: 30% Tradable Bonus | Tifia
  18. Pingback: Cryptocurrency vs Forex Market - Similarities and Differences
  19. Pingback: Review SuperForex
  20. Pingback: Review IronFX
  21. Pingback: Learn how to start trading forex as a beginner
  22. Pingback: Review AETOS
  23. Pingback: Can Bitcoin survive its first global economic crisis?
  24. Pingback: Forex Market vs. Other Financial Markets
  25. Pingback: MT4 vs MT5: What trading platform to choose?
  26. Pingback: Review GBE brokers
  27. Pingback: Review FXChoice
  28. Pingback: Forex Analysis: EURUSD / NZDUSD
  29. Pingback: Up To 7% Annual Interest | IFC Markets
  30. Pingback: Review CryptoAltum
  31. Pingback: Forex Trading Strategies - Scalping
  32. Pingback: 20% Losable Bonus | HonorFX
  33. Pingback: Introduce your friends & get $50 | Tiomarkets
  34. Pingback: Risk appetite finding some fresh legs after a volatile week
  35. Pingback: EU agrees on 8th sanctions package against Russia
  36. Pingback: UK political drama continues to build ahead of scheduled...
  37. Pingback: Russia continues drone strikes on Ukraine
  38. Pingback: 50% First Deposit Bonus | N1CM

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

XM
  • Trending
  • Comments
  • Latest
Technical Analysis

Technical Analysis – Price Action Trading (Part 1)

May 22, 2022
Technical Analysis

Technical Analysis – Price Action Trading (Part 3)

May 22, 2022
Technical Analysis

Technical Analysis – Price Action Trading (Part 2)

May 29, 2022
XTrade

Xmas Season Bonus (26.12.21) | XTrade

April 27, 2022
MiTRADE

Forex Brokers Types: ECN VS Market Makers VS No Dealing Desk

101
Tiomarkets

MT4 vs MT5: What trading platform to choose?

94
CMC Markets

What Is Bitcoin?

55
FPMarkets

What is Forex Trading? (Part 1)

38
FXFlat

Review FXFlat

June 1, 2023
FXCC

VPS Service | FXCC

May 31, 2023
FXCC

100% Deposit Bonus | FXCC

May 31, 2023
FXC

100% First Deposit Bonus | FXCentrum

May 31, 2023

Recent News

FXFlat

Review FXFlat

June 1, 2023
FXCC

VPS Service | FXCC

May 31, 2023
FXCC

100% Deposit Bonus | FXCC

May 31, 2023
FXC

100% First Deposit Bonus | FXCentrum

May 31, 2023

Advertisement

fbs



300_250_en stocks

Connect to FXVNPRo

facebook twitter telegram

Now online

FXVNPRo

FXVNPRo Information

Address: Ho Chi Minh City, Vietnam, 70000

Contact us:
– Skype: fxvnpro
– Email:

admin@fxvnpro.com

fxvnpro@gmail.com

Payment methods:
– Webmoney
– Perfect Money
– Paypal
– Skrill
– Neteller
– Bank Wire
– Bitcoin

Disclaimer

Any promotions, reviews, and other information in the website are just for the information purpose only.

There is no invitation or encouragement to invest in the Financial Markets such as CFDs, Forex, Binary Options, Indices, Cryptocurrencies and so on. We disclaim liability for any loss resulting from the use of information contained on this website.

The published comments are private opinions or feedback of the users. FXVNPRo is not responsible for any information on the website.

Risk warning

Please be aware of your investment into trading markets which is high risk and not suitable for everyone.

Recent Posts

  • Review FXFlat
  • VPS Service | FXCC
  • 100% Deposit Bonus | FXCC
  • 100% First Deposit Bonus | FXCentrum
  • Review FXCentrum
  • Review Fusion Markets
  • CashBack Rebate | Baazex
  • Refer A Friend Program | Baazex
  • 500% Deposit Bonus | Baazex
  • Review Fox Markets
  • Review ForexVox
  • Review Forexite
  • 88% Deposit Bonus | FirewoodFX
  • Review FINQ
  • Review EzInvest

© 2013 - 2023 FXVNPRo - Forex Rebates Service | Forex Expert Advisors | Forex Brokers Review | Forex Promotions - News.

No Result
View All Result
  • Home
    • Advertising Promotion
    • Brokers Listing
    • Economic Calendar
    • Contact Us
  • Forex Brokers Review
  • Learn To Trade
    • Promotional Content
    • Forex/CFDs/Cryptos News
  • Expert Advisors
    • Expert Advisors Price
  • Forex Promotions
    • Best Promotions
    • Forex Demo Contest
    • Forex No Deposit Bonus
    • Forex Cashback Rebate
    • Affiliate Program
    • Forex Deposit Bonus
    • Forex Live Contest
    • Other Promotions

© 2013 - 2023 FXVNPRo - Forex Rebates Service | Forex Expert Advisors | Forex Brokers Review | Forex Promotions - News.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In