It is rare that any two currencies will be identical to one another in value, and it's also rare that any two currencies will maintain the same relative value for more than a short period of time. This means that currency prices are constantly fluctuating in value against each other, creating multiple trading opportunities for investors to take advantage of. Next, it moves to London before closing on Friday evening in New York.Įven when the market is closed from Friday to Sunday, there is always something happening that will take its toll on various currencies by the open on Monday.įorex is the world’s most traded market with an average turnover in excess of around $5 trillion a day. It follows the sun around the earth, opening on Monday morning in Wellington, New Zealand, before progressing to the Asian markets in Tokyo and Singapore. Currency values rise (appreciate) and fall (depreciate) against each other due to a number of economic, geopolitical and technical factors.įorex is a globally traded market, open 24 hours a day, five days a week (Monday to Friday). It’s a decentralised market where the world’s currencies are traded as an over-the-counter (OTC) market, which means that trades are fast, cheap, and are completed without the supervision of an exchange.Įssentially, forex trading is the act of speculating on the movement of exchange prices by buying one currency while simultaneously selling another. Put simply, forex – also known as FX or foreign exchange – is the exchange of one currency for another at an agreed price. How to use market moves to open a position.This means that whilst trading losses cannot exceed funds in your account, your capital is still at risk. *Since the recording of these videos, negative balance protection has come into force from 02.10.17.
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