Sunday, October 14, 2012
Forex Trading Currencies
Forex trading takes place in huge volumes in huge financial centers, such as New York, London and Tokyo. Average daily volume of trading in these in these major financial markets is more than $3 trillion. Much of the trading in the Forex market is carried out by banks ,large companies ,institutions and hedge funds. However successful Forex trading is not confined to huge organisations.The individual investor who concentrates on learning the market fundamentals, works hard at his business using good judgment and has areal dedication to winning can do extremely well. In this article we will talk about the major currencies which are traded in the Forex market.
When you make a trade on Forex you are really making two different trades. You first purchase one currency and secondly sell another. The two currencies involved are knows as a currency pair and Forex quotations are always given as the combination of two currencies. There are many currency pairs which can be traded but there is a short list of the most liquid, and therefore most traded currencies. In order of market share these are the US dollar(USD), the Euro(EUR) , the British pound(GBP), the Japanese yen and the Swiss frank(CHT). Other currencies account for a very small total part of trading.
The US dollar(USD) is the most heavily traded currency by far, with well over 80% of the market share. The relationship between the US dollar and the other currencies which are traded is complex, and the serious trader needs to study this relationship in great detail in order to trade with the best chance of success.The beginning trader will find it best to concentrate on just one currency pair, and get to know its characteristics well in order to make the best judgement possible in trading. You will find much more information at our website