Understanding The Forex Market
The forex market is continually changing and fluctuating based on news and events happening globally. In an interconnected world the exchange of goods and currencies related to specific countries is vital to value trading around the world.
Published on: Mar 4, 2016
Transcripts - Understanding The Forex Market
the Forex Market
̀̀ The foreign exchange market, or forex, is the global market for trading
currencies, and is the largest financial market in the world.
̀̀ The amount of necessary information a trader needs to understand
before entering the forex can be overwhelming.
̀̀ Tourists, businesses, and governments alike all need to be able to
exchange goods and services for local currencies.
̀̀ The forex allows investors to determine the relative value of global
currencies. Exchange rates are constantly fluctuating as currency
valuations are determined by the flow of currency into and out
of a given country.
Terms to Know
̀̀ Direct Currency Quote: The foreign exchange rate quoted as the
domestic currency per unit of the foreign currency.
̀̀ Indirect Currency Quote: The quantity of foreign currency required
to buy units of domestic currency.
̀̀ Cross Currency: Currencies traded that do not include U.S. dollars.
̀̀ Bidding Price: The maximum price that a buyer is willing to pay.
Terms to Know
̀̀ Ask Price: The minimum price a seller is willing to receive.
̀̀ Spreads: The difference between the bid and the asked prices.
̀̀ Pip: The smallest price change a given exchange rate can make.
̀̀ Currency Pairs: The value of a unit of currency against the unit
of another currency.
1. Making large trades without affecting an exchange rate.
2. Low margins when entering the market.
3. The market is open 24 hours a day.
̀̀ Forex Carry Trade
̀̀ Fibonacci Pivot Trade
̀̀ Forex Dual Stochastic Trade
Opening a Forex Account
̀̀ Just as an investor has the potential to gain large sums of money
on the forex, there is also potential to lose large sums.
̀̀ Consult with a professional forex brokerage to ensure that your
account is managed and maintained properly.
Finding the Right Forex Brokerage
1. Leverage: The more leverage an investment has, the more money
you look to gain.
2. Commission or Fees: Your return needs to be greater than the fee
3TG Brokers is the forex, CFD, ETF, and Futures brokerage brand of 3TG
FX Financial Limited Partnership based in Christchurch, New Zealand.
3TG Brokers | 38 Birmingham Drive, Riccarton, Christchurch 8024, New Zealand