The foreign exchange market is the “place” where currencies are exchanged. Currency is important to most people in the world, whether they are aware of it or not, because currencies need to be traded for doing business and trading. If you live in the United States UU And if you want to buy cheese from France, you or the company from which you buy cheese must pay French cheese in euros (EUR). This means that the importer of EE. You harmonic pattern would have to change the equivalent of US dollars (USD) into euros. The same goes for traveling. A French tourist in Egypt can not pay in euros to see the pyramids because it is not locally accepted currency. Therefore, at the current exchange rate, the tourist must exchange the euro against the local currency, in this case the Egyptian pound.

Forex trading

The need to change currencies is the main reason why the foreign exchange market is the largest and most liquid financial market in the world. It also fights the stock market against other markets with an average commercial value of about $ 2 billion a day. (The total volume is constantly changing, but in August 2012, the Bank declared International Settlements (BIS), the foreign exchange market traded more than $ 4.9 trillion a day).

Market trend

A unique aspect of this international market is that there is no central currency market. Conversely, non-prescription electronic currency (OTC) is managed, which means that all transactions take place on computer networks between economic operators around the world rather than in a single central office. The market is open around the clock, five and a half days a week, and the coins are globally in the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore and Paris acted and Sydney , by almost all time zones, that is, when the trading day ends in the United States. UU., The foreign exchange market begins again forex indicator in Tokyo and Hong Kong. As a result, the Forex market can be extremely active at any time of the day, with prices constantly changing.

Read more: Forex Tutorial: What is Forex Trading?
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