What Is Forex Made Easy?
Forex (sometimes known as 4X or Foreign Exchange) is an international exchange market where currencies are bought and sold. The Forex market that we now know began in the early 1970s, when exchange rates and floating currencies were introduced.
Forex is a unique market because it is free of external controls. While this seems like a good thing especially because there seems to be too much regulation already, the regulators are not as convinced.
However, many government and private sector regulators want to change this. They feel that an unregulated market is extremely dangerous because people and accounts can be wiped out in minutes by greedy con artists and market manipulators. Probably regulation will occur later rather than sooner. Like any market this large, there are thousands of small and large players involved, and change is painstakingly slow.
It is not easy to manipulate the Forex markets. But investors need to be cautious, however, because the "big boys" can and do manipulate the market when it's convenient for them (and normally according to a fairly obvious schedule). Therefore, it would be wise and prudent to uncover when those times are (holidays or whenever regular Joes and Janes like you and me are able to carve out a little extra time to invest).
Forex is also the largest liquid financial market in the world, with trade reaching between $1 and 1.5 trillion US dollars (USD) daily, every day. Think about that figure. Because it is such a highly liquid and fast-paced market, it is clear that one investor could not significantly affect the price of a major currency.
Market liquidity essentially means that traders and investors can open and close their trades within seconds because there are always willing buyers, sellers, and brokers (who will promptly take a fixed amount of money on each trade executed).
There are four major currency pairs in 4X: Euro-US Dollar (EUR/USD), US Dollar-Japanese Yen (USD/JPY), US Dollar and Swiss franc (USD/CHF), British Pound and US Dollar (GBP/USD). The first currency in the pair refers to the "base" currency. The second half of the pair is called the counter currency. The EUR/USD is the most traded pair on the exchange and is extremely liquid.
Currency pairs are normally traded as 100,000 base currency units. For instance, if you were buying USD/CHF at 0.98 you would be paying Swiss Francs (CHF) for US Dollars as follows: .98 X 100,000 units = $98,000 Swiss Francs for 100,000 USD, but don't worry because you will not be required to "pony up" $98,000 CHF to learn this game. It is a process called margin trading or trading on margin. That is an entirely different topic and worthy of pages and pages of instruction. Forex Made Easy is here to help and answer those questions. - 23222
Forex is a unique market because it is free of external controls. While this seems like a good thing especially because there seems to be too much regulation already, the regulators are not as convinced.
However, many government and private sector regulators want to change this. They feel that an unregulated market is extremely dangerous because people and accounts can be wiped out in minutes by greedy con artists and market manipulators. Probably regulation will occur later rather than sooner. Like any market this large, there are thousands of small and large players involved, and change is painstakingly slow.
It is not easy to manipulate the Forex markets. But investors need to be cautious, however, because the "big boys" can and do manipulate the market when it's convenient for them (and normally according to a fairly obvious schedule). Therefore, it would be wise and prudent to uncover when those times are (holidays or whenever regular Joes and Janes like you and me are able to carve out a little extra time to invest).
Forex is also the largest liquid financial market in the world, with trade reaching between $1 and 1.5 trillion US dollars (USD) daily, every day. Think about that figure. Because it is such a highly liquid and fast-paced market, it is clear that one investor could not significantly affect the price of a major currency.
Market liquidity essentially means that traders and investors can open and close their trades within seconds because there are always willing buyers, sellers, and brokers (who will promptly take a fixed amount of money on each trade executed).
There are four major currency pairs in 4X: Euro-US Dollar (EUR/USD), US Dollar-Japanese Yen (USD/JPY), US Dollar and Swiss franc (USD/CHF), British Pound and US Dollar (GBP/USD). The first currency in the pair refers to the "base" currency. The second half of the pair is called the counter currency. The EUR/USD is the most traded pair on the exchange and is extremely liquid.
Currency pairs are normally traded as 100,000 base currency units. For instance, if you were buying USD/CHF at 0.98 you would be paying Swiss Francs (CHF) for US Dollars as follows: .98 X 100,000 units = $98,000 Swiss Francs for 100,000 USD, but don't worry because you will not be required to "pony up" $98,000 CHF to learn this game. It is a process called margin trading or trading on margin. That is an entirely different topic and worthy of pages and pages of instruction. Forex Made Easy is here to help and answer those questions. - 23222
About the Author:
Chan Boldene is a technical writer who enjoys writing about many topics including Forex Made Easy, He also enjoys referring others to his dear friend's Daily Devotions at Devotions ChopChopsite.
posted by X - Men @ 2:59 AM
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