ForexFOREX or FX is the acronym for Foreign Exchange Currency Market. It is the world's largest financial market with a turnover of over $5bn a day, thus offering huge opportunities for investment. To get an idea of just how big it is, it is equivalent to the turnover of the New York Stock Exchange, the largest in the world, in one month of trading.
Forex is therefore a very valid, profitable option for investors and speculators who are interested in expanding their portfolio, diversifying risk and generating further revenue. Currencies are traded in pairs, as for example US dollar and euro (USD/EUR), based on different exchange rates, which fluctuate constantly. Traders decide to buy or sell based on the strength or weakness of the currencies.
The foreign exchange market is not located in any specific place, as with stock markets at stock exchanges or bourses. It is considered an over the counter (OTC) or “interbank” market, since operations are conducted between two parties by phone or through an electronic network.
The Forex market has traditionally been dominated by central banks, commercial and investment banks, governments and hedge funds, although in recent years new players such as multinationals, registered traders, futures and options traders and retail investors have entered the market. Thanks to leverage, these new players are able to trade in large volumes. Traders conduct their operations through various financial institutions such as investment banks or brokerage firms.
Another feature is that the Forex market is open 24 hours, 365 days a year, although trading volumes are practically nil at weekends. Peak hours in trading coincide with the start of business at major financial centers and when they overlap each other, first in Sydney and Tokyo (Asian session), then in Frankfurt and London (European session) and, finally, New York (US session).
At 1000 Extra you can trade the most popular currencies, as well as combinations of the corresponding crosses:
- USD (US Dollar)
- EUR (Euro)
- GBP (Pound Sterling)
- JPY (Japanese Yen)
- CHF (Swiss Franc)
- AUD (Australian Dollar)
- CAD (Canadian Dollar)
- NZD (New Zealand Dollar)
For other currencies, please contact us
Open a Real Account or try a Demo Account with 1000 Extra and learn to trade FOREX.