Global Money markets
FX, Foreign exchange, and FOREX describe currency trading in 'world money markets'.
FX trading is very popular, with very low dealing costs, tremendous leverage and 24 hours a day (5 days a week) access to global trading, it is well suited amongst other financial products to internet online services.
Low margin rates on FX, enable traders to gear their investments and live currency charts and up to date news feeds enable accurate decision making and most major currency pairs can be traded via a PC or on the telephone. Forums enable investors to discuss theories and hold discussions with fellow online traders about aspects of Forex investment strategies including risk management.
The Forex market has no physical location - unlike other financial markets e.g the stock exchanges.
FX markets operate through an electronic network of banks, computer terminals or via telephone.
The FX market is the largest market in the world - far bigger than the New York Stock Exchange - Online Forex Trading is available 24 hours a day, 5 days a week.
See an example of CAD/USD and JPY/USD trades.
Major currency references:
AUD - Australian Dollar
CAD - Canadian Dollar
EUR - Euro
USD - US Dollar
GBP - British Pound
JPY - Japanese Yen
NZD - New Zealand Dollar
SGD - Singapore Dollar
Forex trading accounts can be opened without obligation to trade.
Remember there are generally
No costs involved in setting up an online account and you are under No obligation to use a broker once your account is set up.
The advantage of setting up an account in advance: Saves you time so if the exchange rate goes in your favor you can instantaneously agree an exchange rate with your broker and you can trade immediately.
International money markets
Trading is 24 hours a day, 5 days a week.
Trading begins in the Far East, New Zealand, Sydney, Tokyo, Hong Kong, Singapore, Moscow, Frankfurt, London and ends in New York and Los Angeles.
Approx trading hours for regional markets (GMT):
Continental European markets 06:30-13:00
Japananese markets 00:00-06:30
British markets 8:30-15:30
USA American markets 14:30-21:30