Many people stay away from forex market due to less knowledge on the subject. With the advent of technologies individual traders can participate in forex market without time restriction. However, trading in forex market is not easy as risk associated is high.
Here are some quick facts on forex market.
1. Foreign exchange market is the biggest and the most liquid financial market in the world
2. The forex market trades 24/5. It opens on Sunday 5 pm EST(10.00 om GMT) shuts down on Friday 5.00 pm EST(10.00 om GMT).
3. Forex market represent more than $3.98 trillion worth of transaction each day.
4. The forex trading can be done by anyone with an internet connection.
5. The foreign exchange rates depend on the global demand and supply of the currency you are trading in.
6. The major currency's of the world are United States (USD), EuroZone (EUR), Japan (JPY), Great Britain (GBP), Switzerland (CHF), Canada(CAD), Australia (AUD), and New Zealand (NZD).
7. Trading involves simultaneous purchase one currency and selling another. Actual currency are not physically traded, they are transferred from one account to another.
8. In the currency pair, first currency quoted is referred to as the base currency and the second quoted currency is called the quote currency.
9. Pip - Refers to the smallest change in the price of the currency pair. For example, 1 pip in USD/EUR= 1.2345 and if it changes to 1.2346, pip here is .
10. Quotation is the price at which relative value of currency unit is exchanged against the unit of another currency.