Forex Trading

  • Forex trading is a foreign exchange transaction in which a trader purchases a quantity of one currency by paying with a quantity of another currency. Its present day incarnation took form following the abandonment of the old Bretton Wood system of fixed exchange rate regimes, and the adoption of floating exchange rates by most major countries.

    In volume, liquidity and 24 hour participation, it surpasses all other trading instruments, such as stocks, fixed income and options. According to the Bank for International Settlements, the average daily turnover in global foreign exchange markets is estimated at $3.98 trillion.

    In terms of trading styles and disciplines, the speed and 24 hour operation of forex trading make it suitable for both the technical and fundamental trader.

    Forex trading is used by day traders, swing traders, position traders and long term investors alike.

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