1. Forex Trading for Beginners
The Foreign Exchange Market or Forex is a huge financial market with daily market volumes of $3-4 trillion.
Forex Market History
The Forex Market began during the 1970s as the world's major countries gradually switched from fixed currency rates (Bretton Woods) to floating exchange rates.
Many different types of investors are operating within the Forex Market, mainly: 1) Central and Commercial Banks 2) Trade Companies 3) Forex Brokers 4) Institutional and Retail Investors.
Which Currencies are traded within Forex
There are hundreds of different currencies traded in the Forex market, and they are all traded in pairs. Currency pairs are categorized as majors, minors and exotic pairs.
These are the most-traded Forex currency pairs (Generating about 85% of the total Foreign Exchange volume):
- EUR / USD – Euro against the US Dollar
- GBP / USD – British Pound against the US Dollar
- USD / JPY – US Dollar against the Japanese Yen
- USD / CAD – US Dollar against the Canadian Dollar
- AUD / USD – Australian Dollar against the US Dollar
- USD / CHF – US Dollar against the Swiss Franc
The majority of the volume in Forex trading involves 18 currency pairs.