|
Forex trading in its pristine form is done by companies around the world every day while conducting their business as they ship products to other countries. It’s easy to understand the concept with an example; If a company in the US wants to buy a product from a company in India, it will first need to exchange their currency for INR before the purchase is executed. The foreign exchange market or forex market is the market in which currencies are traded. Currency Trading is the world’s largest market consisting of with huge daily volume. The forex market is also the most liquid, differentiating it from the other markets. There is no central marketplace for the exchange of currency, and the trading is conducted over-the-counter. Forex trading is usually executed through a forex broker and as a Forex trader one can choose a currency pair that is expected to witness some change in value and place a trade accordingly. In Forex Trading orders can be placed with just a few clicks with MetaTrader 4, which is a free-of-charge program and is specially designed for online Forex trading in the Forex market. The built-in technical indicators of Metatrader 4 allow users to analyze securities' quotes. All trades executed in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. The value of one currency is determined by its comparison to another currency, the first currency of a currency pair is termed as the “base currency,” while the second currency is called the counter currency. Foreign exchange market provides a forum or a platform where the currency of one country can be traded for the currency of another country. This kind of a financial market is essential to benefit international trade as different countries around the globe have different currencies and for import and export of goods and services between countries this kind of a systematic financial market is necessary. In addition to this use, Forex market is also important from the point of view of FDI and FII. Foreign currencies are also used for direct investment in countries around the globe. Such investment options and lendings are different from export and import. The world's largest financial markets can be traced to foreign currency markets. The major participants in a foreign currency market are large commercial banks and central banks of countries. The Forex market consists of two parts: one being the interbank markets and the second being the clients/ retail markets. Author is an online marketer and loves to write on different subjects. With this post he is sharing information on forex brokers & forex broker.
Related Articles -
forex trading, forex market, financial market, metatrader 4, forex broker,
| 
