FOREX

What is FOREX?

FOREX also referred to as the foreign exchange is the market in which currencies are traded against one another. The FOREX market is the largest market in the world  trading in excess of $1.5 trillion US dollars. This market is open for 24 hours a day (except for weekends) and it is extremely volatile. When you see and hear the term FOREX, you may see it used interchangeably with terms such as foreign exchange, FX, and currency market.

As you learn how to trade FOREX you discover that this market is an over-the-counter market. This means that all transactions are completed either via phone, email, fax, or online. There is not a physical location where buyers and sellers get together to meet and exchange currencies, or FOREX. Of course since this market deals with currencies from around the world and is again open 24 hours a day, it is great for those needing to schedule their trading hours around their own individual schedule. This is one reason why FOREX trading is particularly attractive to day traders.

FOREX technical analysis is used by day traders and it involves the use of charts and technical indicators. Charts and technical indicators are used in order to identify price patterns that are determined by market behavior. Day traders will use a combination of technical indicators as well as trading software in order to do this. There are many different trading strategies that FOREX traders must learn about in order to learn to trade successfully. Some of these trading strategies include the use of technical indicators such as moving averages, Fibonacci, and/or the Bollinger bands. The types of indicators used are subject to the FOREX trader, but most traders will combine at least 2-3 technical indicators as part of their trading plan.

The major FOREX exchanges are located in London, New York and Tokyo with additional exchanges in  Zurich, Hong Kong, Singapore, Frankfurt, as well as Sydney and Paris. These exchanges account for the majority of the transactions that take place 24 hours per day in the FOREX market.

The major currencies are:
(symbol/country/currency)

USD /United States/Dollar
EUR /Euro members/Euro
JPY /Japan/Yen
GBP/Great Britain/Pound
CHF/Switzerland/Franc
CAD/Canada/Dollar
AUD/Australia/Dollar
NZD/New Zealand  Dollar 

FOREX is a great market to trade and is one that every experienced or beginner investor should explore and learn about.

Please continue to learn about the great world of FOREX trading and see if it is a market that interests you.

Below is my video