What is Forex ?
FX, Foreign Exchange; which is basically the exchange between currencies.
Forex is a newer and younger market compared to other markets. Despite the fact that it is a new market compared to other established markets, it took the title of the world’s most traded market in a very short period of time. This market has been influenced by the great technological revolution of financial markets, especially with the widespread use of internet since 2000’s. This revolution has advanced the sector in our country. Forex market transactions have continued to grow with the ease of internet access and the deepening of interbank markets.
Forex trading on the origins of the world, though very old, we can say that this is also a young market for most of the countries. The fact that Forex is a new market is actually providing investors with new opportunities and the opportunity to trade on a market where there are many product varieties. The fact that there are so many products on the Forex market allows investors to evaluate investment opportunities anywhere in the world. With a transaction volume of $ 5.5 trillion, the world’s largest market is also the world’s liquidity market. Thanks to this liquidity, investors can always find a buyer or seller to trade.
At the same time, the transaction volume, which is so high, removes the possibility of manipulation according to the low market. At this point, investors will evaluate their investments according to market conditions while trading.
Typical Forex Trading Hours:
New York 13:00 to 22:00 GMT
London 08:00 to 17:00 GMT
Tokyo 00:00 to 09:00 GMT
Sydney 22:00 to 07:00 GMT
Many institutions around the world now trade 24hrs a day and there are also trading hours when two sessions overlap:
London & New York [12:00 – 16:00] GMT
Tokyo & London [07:00 – 09:00] GMT
Sydney & Tokyo [00:00 – 06:00] GMT
Overlapping forex trading hours contain the highest volume of traders. The forex market is more active than the stock market and is traded Over the Counter. This means that currencies are not listed on any exchange. Though the majority of trade goes through London, New York, and Tokyo there is no one central location where currencies are traded. It is truly a global market.
FX is popular with individual traders due to its accessibility and its simplicity relative to other markets. You can trade FX in an online account from almost anywhere in the world. FX traders buy or sell a currency hoping that it will rise or fall against the value of another in order to profit from the difference in price.
Forex traders have frequent opportunities to take advantage of price fluctuations due to the high volumes of trade activity and the many buyers and sellers in the market. In FX prices are affected by macroeconomic, for example, a decision made by a central bank makes speculating on market prices relatively straightforward compared to the equities market. In forex you simply need to evaluate whether one country’s currency will be worth more or less than the currency of another.