The Foreign Exchange (often abbreviated as Forex or FX) market is the largest market on the planet with daily trading volume of over 1. 9 $trillion within September 2004*. With its high liquidity, low transaction cost as well as low entry barrier, the 24-hour market has attracted investors all over the world.
The following articles aim to introduce the key concepts in forex currency trading, the terminologies and the characteristics of the FX market.
The articles first introduced the idea 'spread', which is the most important transaction cost in forex currency trading, how the spread is presented in the price quotes, what's the significance of it and what is the trick at the rear of it. As most of the retail customers choose to industry forex with margin account, the articles then introduced what is actually margin trading, what is the significance of margin, how to trade a margin account and choosing the correct leverage ratio.
In trading online forex, there are various kinds of orders that you can make to facilitate your trades. The articles then explained the explanation behind each type of orders, when and how to use all of them.
Being one of the most actively trading markets, the currency markets is yet, may not be the most well known marketplace. The articles then gave a little historical background and explained the nature of the foreign exchange market, and made an overall comparison of various trading markets. It also discussed the benefits and drawbacks of trading forex market and what are the recent developments.
Like any other trading instruments, traders should understand the terminologies and also the basis of the market before he/she starts real trading. The above mentioned articles serve as an essential beginners' guide to the world of forex currency trading.
*According to the Triennial Central Bank Survey of the forex market conducted by the Bank for International Settlements and published within Sept 2004.
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