Demand for particular currencies can be influenced by interest rates, central bank policy, GDP, and country’s political environment.Because of forex’s global nature, the markets trade for 24 hours a day, five days a week. Forex markets are the most liquid markets in the world.
Forex Trading TerminologyForex markets have different terminologies and nuances for trading. Below is the list of most common terms.Currency PairsTraders frequently trade currencies by selling one currency and buying another. Forex trading always involves the exchange of currencies in pairs.
Can You Get Rich By Trading Forex?Forex investors make money by deciding what currencies will rise and fall. Some traders swear by technical analysis and others will rely on fundamental analysis. Traders believe they know what direction the currency would move based on the latest news. The challenge with making money trading is that the same information is also available to everyone else, including professional investors.
Who Does Forex TradingProfessional investors trade forex to make money. Trading is done in the spot market, where exchange rates are determined in real-time depending on the current economic and geopolitical factors.Global companies actively trade forex as well in the futures market.
Forex is part of our everyday life as a result of living in an interconnected global economy. Currencies usually trade in a tight band. If a currency suddenly depreciates, it could be an indicator of upcoming inflation or potential geo-instability.