Introduction To Forex Market
By: ActionForex.com -
The Foreign Exchange (often abbreviated as Forex or FX) market
is the largest market in the world with daily trading volume of
over 1.9 $trillion in September 2004*. With its high liquidity, low
transaction cost and low entry barrier, the 24-hour market has
attracted investors around the world.
The following articles aim to introduce the key concepts in forex
trading, the terminologies and the characteristics of the FX
market.
The articles first introduced the concept 'spread', which is the
most important transaction cost in forex trading, how the spread is
presented in the price quotes, what is the significance of it and
what is the trick behind it. As most of the retail customers choose
to trade forex with margin account, the articles then introduced
what is margin trading, what is the significance of margin, how to
trade a margin account and how to choose the correct leverage
ratio.
In trading online forex, there are many types of orders that you
can make to facilitate your trades. The articles then explained the
rationale behind each type of orders, when and how to use each of
them.
Being one of the most actively trading markets, the forex market is
yet, may not be the most well known market. The articles then gave
a little historical background and explained the nature of the
forex market, and made an overall comparison of various trading
markets. It also discussed the pros and cons of trading forex
market and what are the recent trends.
Like any other trading instruments, traders should understand the
terminologies and the basis of the market before he/she starts real
trading. The above articles serve as an essential beginners' guide
to the world of forex trading.
*According to the Triennial Central Bank Survey of the foreign
exchange market conducted by the Bank for International Settlements
and published in Sept 2004
Action Forex provies forex analysis reports, live pivot points on majors and crosses, etc are provided with collection of carefully selected educational articles and free trading ebooks downloads.
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