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FOREX Currency-Trading-System
The world's currency-trading-system is also called the foreign exchange market, or "FOREX" or "FX" market for short. It is the largest, most liquid market in the world in which the world’s currency is traded primarily through the 24 hour-a-day interbank currency market.
For details on the international currency trading system, click on the TRADE FX+ link below and go to "LINKS":
The FOREX market is a cash (or "spot") interbank market. Foreign Exchange Trading means the buying of one currency and selling of another simultaneously.In essence, the exchange of one currency for another. The world’s currencies operate on a floating exchange rate, and are always traded in pairs - Dollar/Euro, Dollar/Yen etc. More than 85 percent of all daily foreign currency trading involve exchange of the major currencies - US Dollar, Euro, Japanese Yen, British Pound, Canadian Dollar, and Swiss Franc. The currency trading system – unlike the stock and futures markets - is not centralized in one location. The foreign exchange market -Forex – is a global system operating 24/7. Trading moves from the U.S. to Australia and New Zealand, to the East Asia, Europe and back to the U.S. In the past, the FOREX currency trading system was limited only to banks, major currency deals and large corporations due to the large minimum transaction sizes and strict financial requirements. Today, foreign exchange market maker brokers are able to down size the larger interbank units, and offer small traders the opportunity to buy or sell any number of these smaller units (lots). Virtually any trader, including individual speculators or small businesses can be involved in foreign currency trading at the same rates and price movements as the large players who once dominated the market. Market makers quote buying and selling rates for currencies, and they trade with the aim to make profit on the difference between their buying and selling rates.
To understand the currency-trading-system, see the FOREX currency trading glossary.
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