Forex Trading for Beginners

One of the favorite market of every capital investor is the Foreign Exchange Market. The Foreign Exchange Market which is also called as the Forex or the Fx market is a huge financial market with daily market volumes of $3-4 trillion. The Forex market is the larger and more liquid financial market in the world.

 

Forex Market History

The Forex Market began during the 1970s after 30 years of government restrictions regarding the foreign exchange transactions. The Forex market begun after the end of Bretton Woods Agreement which actually became a global monetary system for 30 years. The Forex market was born as the world's major countries gradually switched from fixed currency rates (Bretton Woods) to floating exchange rates.

 

FXCC Forex Trading

Forex Market Characteristics

1) Continuous 24-hour operation, 5 days per week (Operating from Sunday 20:15 GMT to Friday 22:00 GMT

2) Large size and enormous liquidity

3) Wide geographical distribution

4) Low margin requirements and high capital leverage

 

Forex Market Participants 

Many different types of investors are operating within the Forex Market: 

1) Central Banks

2) Commercial Banks

3) Global Trade Companies

4) Forex Brokers

5) Institutional Investors

6) Retail Traders

 

Central Banks: US Federal Reserve | European Central Bank | Bank of Canada | Bank of England | Bank of Japan | Reserve Bank of Australia | Swiss National Bank

 

Forex Market Trading Sessions 

There are three main Forex sessions for the winter time zone and three for the summer time zone: 

Forex Time Zone

GMT (open-close)

EST (open-close)

Winter Time Zone (October to April)

 

 

New York

1:00 PM
10:00 PM

8:00 AM
5:00 PM

London

8:00 AM
5:00 PM

3:00 AM
12:00 PM

Tokyo

12:00 AM
9:00 AM

7:00 PM
4:00 AM

Summer Time Zone (April to October)

 

 

New York

12:00 PM
9:00 PM

8:00 AM
5:00 PM

London

7:00 AM
4:00 PM

3:00 AM
12:00 PM

Tokyo

12:00 AM
9:00 AM

8:00 PM
5:00 AM

 

Forex Volume Analysis 

The daily volumes in Forex are absolutely huge, in a $4 daily trillion volume a typical break-down would be as follows: 

  • $1.765 trillion in foreign exchange swaps
  • $1.490 trillion in spot transactions
  • $0.475 trillion in outright forwards
  • $0.207 trillion in options and similar products
  • $0.043 trillion in currency swaps

Chart: The distribution of Forex daily volumes

 Forex Industry

 

Related Links» Forex Basics at Trading Center | » What-is-Forex.com 

More on Forex» Currency Trading | » Forex Terminology | » Forex Tips | » Rating Brokers | » Compare Brokers

 

Capital Investor

Forex Trading for Beginners

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Growth, Time & Risk

Capital Investing is all about Balancing Growth, Time and Risk.. 

Balance always your investing decisions between Growth, Time and Risk and you will be rewarded. If you ignore time you will probably get bored while if you ignore risk you will probably get bankrupt. 

(G. P. TradingCenter.org)

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Diversify Strategy

Diversify your Strategy according to the Instrument that you Choose..

When you trade Stocks & Indices it is better to widen your strategy in order to include many different markets / assets while when you trade Forex & Derivatives it is better to focus upon a couple of assets.

Forex Rebates

Find Forex Trading Rebates at TradingCenter.org

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