Introduction to Foreign Exchange Trading
The Forex Market (Foreign Exchange Market, FX Market) is the largest financial market in the world with more than one trillion dollars traded per day.
In the previous decade, the Foreign Exchange Market was available only for large corporations, financial institutions, hedge funds, banks and very rich individuals.
Foreign Exchange Trading
In time the Internet emerged and Forex Trading was made available for any individual or company wanting to invest online.
The price of currencies fluctuates very little in a day so a Leverage up to 500:1 is used to give the possibility of winning important amounts of money per trade.
On Forex Market you can trade currency pairs, you can buy and sell different currency pairs.: EUR/USD, GBP/JPY etc.
Currency Quote
In Forex Trading a currency is always quoted in relation to another currency, you will always trade currency pairs.If you will see a quote for USD/JPY of 118.70 it means that one unit of the base currency (in this case $1) is equal to 118.70 Japanese Yen meaning that with 118.70 Japanese Yen you can buy $1.
More articles will be published to help you learning how to trade foreign exchange.
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