Forex Eur Jpy

What is Foreign Exchange

The foreign exchange (currency or as it can be known in simpler terms Forex or FX) market refers to the market for currencies. Transactions in this market generally involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The Foreign exchange market is the largest and most liquid of all financial markets in the world, and includes trading between large banks, central banks, currency traders, corporations, governments, and other institutions. In terms of daily volume in the global foreign exchange and related markets is continually growing and was last estimates reported that this was in excess of US$ 4 trillion in 2007 by the Bank for International Settlement.

Singapore in 2007 was ranked 5th largest in daily Foreign exchange transactions with an estimate of US$230 billion per day, this was an increase of some 80% on the previous years figures.

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Why trade FX

There are so many benefits to trading FX, which is why we are seeing an ever increasing numbers of traders moving into the FX markets.  

• - 6 days per week 24 hours per day
• - Leverage
• - Liquidity
• - Minimal trade costs
• - Minimal chance of gapping
• - Low chance of market manipulation
• - Not related to the share market
• - Many pairs to trade

Codes:

All currencies are assigned an International Standards Organization (ISO) code abbreviation. These codes express with specific currencies make up a currency pair.

Symbol                         Currency Pairs                           Trading Terminology

EUR/USD                     Euro/US Dollar                                      Euro

USD/JPY                      US Dollar/Japanese Yen                        Dollar Yen

GBP/USD                     British Pound/US Dollar                         Cable

USD/CHF                      US Dollar/Swiss Franc                          Swissy

EUR/JPY                      Euro/Japanese Yen                               Euro Yen

EUR/GBP                     Euro/British Pound                                Euro Sterling

AUD/USD                     Australian Dollar/US Dollar                     Aussie Dollar

The most common traded of these currencies are:
 

• - Euro
• - US Dollar
• - Great British Pound
• - Australian Dollar
• - Japanese Yen
• - Swiss Franc

About the Author:

Full Time Trader, makes money out of CFD trading on Singapore Stock Exchange and also out of Forex

Article Source: ArticlesBase.com – What is Forex