Foreign exchange is a general term which describes the exchange of one monetary currency to another. For example, you can trade $ 1.00 for roughly PhP 40.00 or you can trade $ 1.53 for EUR 1. Other terms used for foreign exchange are Forex and FX.
With the main forex trading sites in New York, Frankfurt, Sydney, London, and Tokyo, forex allows trading twenty-four hours a day for five days a week, weekends not included. Forex is the largest trading market in the world, with currencies amounting to about $ 1.4 trillion traded a day.
Foreign exchange involves buying and selling of one currency to another, with two parties making the exchange. Cross is the practice in which two particular conventions are bought and sold. The eight major currencies are USD (US Dollar), EUR (Euro), GBP (British Pound), AUD (Australian Dollar), JPY (Japanese Yen), HKD (Hong Kong Dollar), and the CHF (Swiss franc). All the above-mentioned treaties are actively trading with each other and other minor treaties around the world every second.
Foreign exchange is OTC (over the counter) and a trade is participating in by only two treaties directly at a time. Therefore, the foreign exchange market does not have a central exchange like the stock market.
Forex is a rapidly and continuously growing market because of the importance of buying and selling monetary contracts as a way to manage and control assets and funds. The exchange between two specific treaties is called a cross and is represented as EURUSD, USDJPY, or USDCHF. Hopefully, this short article will get you started on your own exciting and profitable forex journey!
