Foreign Investing and Investment resources.
About Forex.
Forex is short for Foreign Exchange
it is also known as FX. The FOREIGN EXCHANGE (FOREX, FX) market is not
a "market" in the traditional sense. In fact, it is the nearest to "perfect
market" from a economics perspective.
Most currency transactions involve
the "Majors" - US Dollar, Euro, Japanese Yen, British Pound, Swiss Franc,
Canadian Dollar and Australian Dollar.
The Forex market operates 24 hours
a day through an electronic network of banks, corporations and individual
traders. Forex trading begins every day in Sydney, then moves to Tokyo,
followed by London and then New York. The major market makers, or dealers,
consist of the commercial and investment banks, the exchange traded futures,
and registered futures commission merchants
Why everyone is flocking to the Foreign
Exchange
The forex market is the most exciting
investment in the world.
There is no centralized location for
trading as there is in futures or stocks. Trading occurs around the clock
over the telephone and on computer terminals at thousands of locations
worldwide. In fact, Foreign Exchange is the biggest market on earth. The
Forex (currency trading) industry has a daily turnover of 2.5 trillion
dollars! (The turnover is 100x more than the daily turnover of the NASDAQ.)
It is so large, with so many currencies
and participants the outcome can not be altered or controlled by individuals,
groups, businesses, or even governments! Central banks, private banks,
international corporations, money managers, speculators, and private individuals
- all involve in FOREX trading.
Foreign Exchange prices, or quotes, include a "Bid" and "Ask" similar
to other financial products:
Bid: Price at which Dealer is willing to Buy and Traders can Sell Currency
Ask: Price at which Dealer will Sell and Traders can Buy Currency
The difference between the Bid and Ask is called the "Spread", which
is the Trader's cost of the transaction. FX Solutions offers Traders the
narrowest spreads in the retail Forex industry, thereby lowering transaction
costs
Currencies are usually quoted to four decimal places, such as the Euro/US
Dollar trading at 1.2400/1.2403, with the last decimal place referred to
as a point or "pip". A pip for most currencies is 0.0001 of an exchange
rate; the one exception is the USD/JPY quote in which each pip is equal
to 0.01.
Analysis of Foreign Exchange Markets
Foreign exchange traders base their decisions on either technical analysis
and fundamental analysis. Technical traders use charts, trend lines, support
and resistance levels, mathematical models and other means to identify
opportunities and drive trading decisions. Fundamental traders identify
trading opportunities by analyzing economic information.
Investing in the Foreign Exchange.
Foreign exchange trading is the simultaneous buying
of one currency and selling of another.
Education
