Forex Trading Strategies

Currency trading is the largest market on the planet. It is estimated that in excess of US$2 trillion is traded every day. Compare this to the New York Stock Exchange’s daily transactions of approximately US$50 billion, and you can see that the magnitude of the currency trading market exceeds all other equity markets in the world combined. The practice of currency trading is also commonly referred to as foreign exchange, Forex, or FX, for short.

All currency has a value relative to other currencies on the planet. Currency trading uses the purchase and sale of large quantities of currency to leverage the shifts in relative value into profit.

What is the FX market?

The FX market is different from other markets in some other key ways that are sure to raise eyebrows. Think that the EUR/USD is going to spiral downward? Feel free to short the pair at will. There is no uptick rule in FX as there is in stocks. There are also no limits on the size of your position (as there are in futures); so, in theory, you could sell $100 billion worth of currency if you had the capital to do it…….You can Read more Here

Tags: capital, currencies, currency, currency trading, FX market, liquid currency, money, stock exchange, trading

This entry was posted on Tuesday, June 8th, 2010 at 2:55 am and is filed under understanding forex. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.