Trading account
Review stocks
Trading competitions
Learn Trading
About Shark

Stocks education

Investing news

Investing articles

Investing sites

Learning to invest BLOG

Forex trading ($25)

Search stock

An Introduction To Forex Trading

By Gabriel J. Adams 

Forex Trading, also known as FX Trading or Foreign Exchange Trading, is what happens when you trade one nation's currency for another. For example, if I go to the bank and exchange ten United States dollars for 15 Australian dollars, I have completed a simple Forex trade.

The forex trading market is the largest trading market in the world. According to a study done in 2004, approximately two trillion dollars are traded each day in markets across the globe.

The forex trading market is very unique in several aspects, one of which is its international presence. Unlike the stock exchange, which is largely located in New York and has set hours, the foreign exchange market is open twenty four hours a day. In between the united states, European, Asian, and other markets, there is always at least one market open.

Other factors that make the forex market unique are the high liquidity of the market, the wide variety of traders and institutions involved, and the wide variety of factors which affect prices.

In the forex market, there is the ask price (the price at which currency is sold) and the bid price (the price at which the currency is bought. Usually, these prices are very close together, often about one-hundredth of a cent apart.

The United States dollar is by far the most traded currency. Approximately eighty nine percent of transactions involve the United States Dollar. Other highly traded currencies include the Euro, Yen (Japanese), Sterling (British), Franc (Swiss), and the Australian Dollar.

The forex market includes many types of traders. The largest traders are banks. Actually, about fifty-three percent of forex transactions are in between two banks. Other traders include non-bank financial institutions, other corporations, retail exchange brokers, investment firms, hedge funds, and speculators.

The forex marketing is the largest, and arguably most complex market in the world.

      Stock Shark © 2011, Email: shark [@] / Privacy Policy / forex / And of course, once you're rich, go join our free travel network.

Warning: Unknown: Your script possibly relies on a session side-effect which existed until PHP 4.2.3. Please be advised that the session extension does not consider global variables as a source of data, unless register_globals is enabled. You can disable this functionality and this warning by setting session.bug_compat_42 or session.bug_compat_warn to off, respectively in Unknown on line 0