Forex trading market

Forex (or foreign exchange) is a form of trading that deals with simultaneous selling and buying of currencies. Trading happens in currency pairs. There are seven major currencies: the US dollar, The Cana dian dollar, The Australian dollar, the euro, the Japanese yen, the British pound, and the Swiss franc. There are a number of minor currencies also traded on Forex.

Here are some differences of Forex trading market over other markets:

• No physical location. Forex doesn’t have a physical location. It is a giant global network, which allows trading 24/7. By the time bank trading is over in America, it opens in Europe, then in Asia.
• 95% is speculative. Although all major banks trade on Forex, 95 % of the market is speculative. Although traders carefully follow economic indicators that affect the direction of the market, they don’t particularly care whether the market is going up or down—they make money either way. They just need to predict the direction and the duration of the change.
•  No middlemen. Anyone can start trading on Forex trading market. Once you open an account with a forex broker, you can trade directly on the market over the Internet. There is no delay (or a very minimal delay in a high volume trading) in transactions, and the broker only takes a very small commission (called spread), which is based on the type of currency that you trade. The commission stays the same whether the transaction is big or small.
• High leverage. Unlike stock market, where the maximum leverage is 2:1, forex offers much larger leverage. The most common leverage is 100:1, but some companies offer even higher leverage. Having higher leverage can significantly maximize your profits. However, if can also significantly increase your loses.