What is FOREX?

The currency market, also known as Forex or FX market is the largest in the world financial market. It is 50 times larger than the Stock Exchange of New York and moves daily over 4 trillion dollars estadounidienses.



What is being negotiated?The answer is money.




It is exchanged between the major central banks and organizations, companies and individual traders cathexes.




In fact, you probably involved in Forex trading without knowing it. Every time you take a trip to another country and exchange money, you contribute to the volume of these $ 4 trillion traded daily.




If you go on trip to US will convert their base currency US dollar. This means that you will buy dollars and basically reflected in the US economy




How Forex trading?
Traders in the Forex market currencies would be available and buy hard currency while selling the weak currency. For example, if before reading the news, I thought the euro was strong and the US dollar was weak, buy euros and sell dollars.




Because this by comparing one currency with another, the Forex always quoted in pairs. For example if the price of EUR / USD is 1.4650, this means that one euro costs 1.4650 USD dollars at this time. If the exchange rate falls to 1.4422, then this would mean that the euro is weakening and the dollar becomes stronger.




Within the currency pair, the first currency is the base currency and the second listed. When you buy or sell a currency pair is carrying out an action in the base currency.







The US dollar is the most traded currency in the world - with almost 85% of all transactions realilzadas. The following is the euro, yen and then followed by the pound. For this reason the prices of all currencies against the dollar relate to major pairs (USD / JPY) and the rest are crossed pairs (eg EUR / JPY).