INTRODUCTION TO THE FOREX (THE FOREIGN EXCHANGE)
The Foreign Exchange, or more commonly referred to as the Forex (or the Currency Exchange, 4X or FX), is a global cash market where national currencies are paired against other national currencies and then traded. For example, the Euro is traded or paired against the US Dollar, as the euro exchange rate changes, the US dollar exchange rate changes. Start Investing Now!
Forex Trading Hours
Forex trading starts non-stop from the Australian Open Sunday Evening at 22:00 – 07:00 GMT, Tokyo opens at 00:00 GMT, the London Open at 08:00 GMT to the New York Market open at 13:00 to the close on Friday afternoon at 22:00 GMT.
Largest, Most Liquid Financial Market
The FOREX trades an approximate value of $4-$5 TRILLION (USD) every day, approximately 10 times more than ALL the financial markets in the world, combined; approximately 80 times more than these 3 stock markets – NYSE (New York Stock Exchange), NASDAQ, and AMEX – which only trade a combined $40 billion daily.
This includes trading between central banks (such as Citibank or Deutsche Bank), commercial banks, Investment Banks, and large multi-national corporations. It also includes hedge fund managers like George Soros, currency brokers, institutional and multinational corporations, governments, currency speculators, day traders and others. Register Your Account!
Mar 12, 2012 10:54 AM GMT+0200 “Currency trading may have risen to a record $5 trillion a day in September, surpassing the peak reached before Lehman Brothers (LEHMQ) Holdings Inc.’s collapse… trading then declined to about $4.7 trillion a day in October…” according to the Bank for International Settlements.
Interbank Foreign Exchange Market
Historically, the traders and investors which trade the FOREX markets have been central and commercial banks, Investment Banks, large multi-national corporations, institutional investors, and hedge funds managers. In contrast to the stock market, the foreign exchange / currency exchange market is separated into levels of access. See account types.
Foreign Exchange Currency Crosses (Currency Pairs)
If you look at an example of a currency pair such as the EUR/USD you will see three-letter designations for each currency correspondent to the country, although some countries use the same currency from a different country, for example, Turks and Caicos Islands, and Timor-Leste use the US Dollar (USD) as opposed to their own currency.
Regardless, each currency has a designated currency code according to ISO 4217. In addition, Commodities such as Gold, Silver, Platinum, etc., also have designated three-letter codes, e.g. XAU for Gold, XPD for Palladium, XPT and XAG for Platinum and Silver.
What is ISO 4217, you may ask? According to SVN, the Swiss Association for Standardization, “ISO 4217 is the International Standard for currency codes. The most recent edition is ISO 4217:2008. The purpose of ISO 4217:2008 is to establish internationally recognized codes for the representation of currencies. Currencies can be represented in the code in two ways: a three-letter alphabetic code and a three-digit numeric code.”
Base Currency vs. Quote Currency
Currency is traded in pairs or crosses – one is your ‘base’ currency, the first currency quoted in the currency cross or pair, and the other is the ‘quote’ currency – buying one currency while simultaneously selling the other. For example, the Euro is normally paired against multiple currencies such as the U.S. Dollar (or EUR/USD), the British Pound (sometimes referred to as the British Cable – EUR/GBP), or the Australian Dollar (EUR/ AUD).
The currency pair shows how much of the quote currency is needed to purchase one unit of the base currency. The ‘bid’ (buy price) represents how much of the quote currency is needed for you to get one unit of the base currency.
Conversely, when you sell the currency pair, you sell the base currency and receive the quote currency. The ‘ask’ (sell price) for the currency pair is what you would receive in the quote currency for selling one unit of base currency. Start Trading Today!
The Major Currency Pairs / Crosses
Currency Pairs are initially categorized by Majors – Euro (EUR), GBP (the Cable – Pound Sterling), Australian Dollar (AUD), New Zealand Dollar (the Kiwi – NZD), United States Dollar (USD), Canadian Dollar (CAD), Swiss Franc (the Cheffie – CHF), and the Japanese Yen (JPY) – and then they are categorized by other minor or other types such as commodity currencies. Below, the major crosses are listed:
AUD/USD: The Australian Dollar & The U.S Dollar (Aussie)
EUR/USD: The Euro and The U.S Dollar (Euro)
GBP/USD: The British Sterling (Pound) and The U.S Dollar (Cable)
NZD/USD: The New Zealand Dollar and The U.S Dollar (Kiwi)
USD/CAD: The U.S. Dollar and The Canadian Dollar (Loonie)
USD/CHF: The U.S Dollar and The Swiss Franc (Cheffie/Swissie)
USD/JPY: The U.S Dollar and The Japanese Yen (Yen)
The United States Dollar (and in some respects the British Pound) and the Euro are considered reserve currencies.
The United States Dollar, constitutes approximately two-thirds of holdings, is the most commonly held, and currently the Euro is the second in terms of holdings, making up approximately a quarter of reserves.
The Three Commodity Pairs
The commodity currencies originate from countries which have large quantities of natural resources or commodities.
These natural resources usually represent the majority of these countries’ exports, and subsequently the strength of these economies are highly dependent on the market prices of these commodities.
Not all countries rich in natural resources have currencies which are commonly traded. As a result, trading will usually involve only these three countries which are not only rich in commodities, but also have free floating or liquid currency.
These are Australia, New Zealand, and Canada represented by the Australian Dollar, The New Zealand Dollar, and the Canadian Dollar! Invest Now!
WHY TRADE THE FOREX
You can consider other investment opportunities but the Foreign Exchange, known as FOREX, presents the individual investor such as yourself (or any investor) with one of the greatest possibilities of profit (ROI) in the shortest time frame.
And it does not make a difference what the state of the economy is – the Foreign Currency Market is a virtual bull market – constantly on the move, as one currency exchange rate goes down, the other paired currency rate goes up!
The most appealing, alluring aspect of forex trading is the opportunity to experience capital gains in a short period of time.
Trading on CFD Corporate #1 FX/CFD Currency Exchange Platform does not require the time consuming educational requirements historically needed for more complex trading platforms such as meta trader.
Some of our traders are trading within minutes after opening an account – immediate profits do occur and can happen for you in a matter of minutes to a few hours. Opening a CFD Corporateaccount is an easy 1, 2, 3 process. Register Today!
The FOREX is an emerging, developing, and rapidly evolving industry with a ‘new jargon’ being created to describe new found processes and trading methodologies. As an account holder with CFD Corporate, you have access to excellent education and training at little to no cost depending on account types and features (see account types)
In the past, trading on desk top, mobile trading and web based trading platforms such as meta trader 4 (MT4) required an expenditure of time to learn and execute competently and successfully. Short term trading, scalping, swing trading and day trading were for experienced, educated and thoroughly trained professionals, not for the beginner, part-timer or faint of heart.
Before the explosion of the FX/CFD Evolution, it used to take months and years of training to understand platform processes, setting up charts and chart patterns, fundamental and technical analysis, and the 100’s of different leading and lagging indicators, and more importantly, to trade successfully.
Until Now! CFD Corporate industry leading, #1 FX/CFD & Forex Trading Platform has removed the complexity and simplified the entire forex trading process so that you do not have to study for years just to begin trading.
With our market insight, our extensive history of creating wealth, developing world-class financial plans, coupled with the individual direction and support you will receive from the CFD Corporate team, you can begin trading as soon as you feel comfortable to do so. Start Trading Now!
You now have the opportunity to let our seasoned trading pros assist you in managing your account. Our veteran analysts, together with our expert personal brokers will provide the professional guidance to quickly execute winning trades on the buy or the sell, the high or low. If you know what you are doing, great. If not, we will train you.
We will show you how to trade with a simple, effective money management system; we will provide a thorough understanding of stop losses, profit limits, and risk management strategies to give you a winning edge in the market.
Don’t wish to learn how to trade? We hear you. Let our Retail Dealing Room trade with you – let our years of wealth growing experience assist you in managing and growing your wealth. Opening a CFD Corporate trading account is an easy 1, 2, 3 process. Open Account!
Trade with ZERO Spreads or Margins
Spreads or Margins are the difference between bid and ask prices. Normally, zero spreads and/or margins are accessible only by players within the Banking Inner Circle.
With the advent of CFD Corporate Proprietary FX/CFD & Forex Trading Platform and the technological advances pioneered by us, we have eliminated spreads and margins from your trading experience. Again, we have eliminated a complex and difficult process and transformed currency trading into a simple and easy process (this includes stock trading, index trading, and commodity trading as well).
Most traders will in due course realize that learning how to execute winning trades on your own, on a consistent basis (which is the key factor), takes an investment of time and money, and the shortest path to this process is understanding directional trading on our FX/CFD Platform! Start Trading Now!
As an account holder with CFD Corporate, if you have any hesitation regarding the trading process, you also have the exclusive option to let our experienced team of professional brokers on our FX/CFD / Forex Retail Dealing Room trade with you as opposed to other dealing desks and dealing rooms which trade exclusively against you.
The FOREX is a zero sum game. Someone has to win, why not you? Experience today’s evolution in trading with the greatest FX/CFD & Forex Trading Platform and the first FX/CFD / Forex Retail Dealing Room.
With CFD Corporate, opening an account is an easy 1, 2, 3 process. Register now and then share your financial dreams and desires with your personal broker. Let CFD Corporate be your compass as we guide you on the direct path to your financial dreams and desires.