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| Forex Currency | ||
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What is Forex Trading? Forex, short for foreign exchange, is trading where the commodity is not stocks or shares, but currency. The return for the investor is not in the value of the currency per se, but rather the relative exchange value of one currency against another currency. Therefore forex rate trading is always expressed in currency pairs such as US dollars and UK Sterling or US dollars and Euros. By simultaneously buying and selling pairs of currencies, the investor/speculator hopes to cash in on favorable exchange rate fluctuations. Like the interaction of gravity and airborne objects, though, exchange rates go down as well as up. The trick in the black art that is Forex trading is accurately forecasting the direction of the fluctuation between two currencies. Change is frequently rapid and influenced by world events and a multitude of other factors such as oil prices,currency trading news, interest rates and economic climates. The objective of any Forex trader, naturally, is to make a profit when the value of the currencies changes in favor of the investor. Plenty people certainly think that’s the case; the Forex market is daily worth on average in excess of $1 trillion. This staggering volume of buying and selling of currency makes forex rate trading around 50 times larger than all the futures markets combined! Other Useful Sites : forex charts FTSE 100 |