Tue, 02/02/2010 - 23:30 — David Wei
Currencies Are Traded against One Another in Forex Market
It is money in different currencies that you trade in forex market. You trade forex by buying one currency and at the same time selling another currency. The currencies are traded through a forex broker in pairs, such as EUR/USD. Here the currency pair EUR/USD means the relative value of euro(EUR) against the US dollar(USD). If you buy EUR/USD, that means you buy in Euros and at the same time sell Us Dollars.
The most traded currency pairs in the world are called the Majors. They are EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF and USD/CAD, involving the major currencies euro(EUR), US dollar(USD), Japanese yen(JPY), pound sterling(GBP), Australian dollar(AUD), Canadian dollar(CAD), and the Swiss franc(CHF). About 85% of forex market volumes are traded between the Majors.
Different Level of Forex Market and Participants
There are different levels of forex market and participants. Trades between the largest commercial banks and securities dealers accounts for 53% of all transactions, followed by the small banks, large multi-national corporations, hedge funds, insurance companies, investment management firms and some retail Forex brokers.
Most of The Forex Transactions Are Speculative
While there are true demands for foreign exchange, such as buying goods from/selling goods to foreign countries, or investing in overseas market, about 70% to 90% of the foreign exchange transactions are speculative. That is to say, the banks, hedge funds or individuals who bought or sold the currency are not trade currencies for their own use, but only want to make a profit from the fluctuations of exchange rates.
It is not strange to see that because the features of Forex Market make it a good financial market for the speculators to make huge profits from it. I will tell you why in my next post.
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get your site a DoFollow link by leaving you comments below:Forex Basics
Forex is one of the best ways to earn quick cash. You just have to know the basic skills of trading, and you will be on your way to making money at home.
forex
Very good introduction in forex trading. Currencies are difficult to predict though
Making money online
Nice article about forex. Woring with Delrin has been profitable as well, but we will look into forex to diversify.
Forex is inherently flawed
The good thing about Forex is that you can make money in the market.
The bad thing is the system is inherently flawed because for you to make money, someone else has to loose money!
I don't know about you, but I can't live with myself knowing that I am profiting because of other peoples lose.
Currency changes have been responsible for many types of suffering throughout the world, while small groups of people continue to get richer and richer off that suffering.
Any currency that is not inherently stable will eventually fail and even while it is viable, Forex trading causes a builtin inflation that causes the currency to become less valuable over time unless it is offset by an equal amount of growth.
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Thank you for reading this comment and I hope it gives you a little understanding about Forex and alternative methods of making some cash online.
Speculative Exchange Transactions
Its quite interesting that such a large proportion of the exchange transactions are speculative. I never thought of that before. Thanks for posting.
Thank you so much David for
Thank you so much David for this post. This post definitely helpful to those related to e-commerce.
Forex trading
Forex trading is both profitable. Forex trading courses are usually hard to understand and follow
Forex
iam a trader for the past 2 years, nice post about currecy pairs, thanks
Forex Basics
The Forex market may appear really complex and creepy to understand and workout.
Forex as a home business
I agree this is a good introduction to FOREX trading as a work from home career. The key thing I would say that makes it both a lucrative and risky business. I would say that in a similar way to trading stocks you need discipline.
Essentially all FOREX is informed betting. It has elements of skill, you need to get to know how to read the market etc.
Setting a limit to your investment and even more importantly, never investing to get yourself out of a hole, is a fundamental skill.
Forex Basics
What is the difference between base currency and counter currency in Forex?
Thanks for sharing wonderful
Thanks for sharing wonderful information with us. I agree with your all points.
A well written overview of
A well written overview of Forex. Another thing is to try to do it by yourself as much as possible. Some of the companies that offer help you need to be mindful of. But Forex trading can bring in much profit when done right.
Forex Basics
I'm young and have money to invest but have no clue about stocks or investing. Where can I learn the basics and start investing my money?
Forex Basics
Which website gives complete information about Forex in detail?
forex trading
However forex trading is not an easy way to make money, but anyone can make money from Forex trading as it is a learned skill. You have to put your efforts in to make money from it.
Forex Basics
If you want to earn huge money, the forex market is the most lucrative trade you could ever engage.
The Forex market may appear
The Forex market may appear really complex and creepy to understand and workout.
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