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Zhi Finance » Forex Market – International Trading

Forex Market – International Trading

Forex market trading is the trading of currencies on a global scale. Most countries in the world are involved in the Forex market, buying and selling currencies depending on the value of that currency at the time. Since some currencies are not worth much, it will not be traded in large quantities as the currency is worth more and more brokers and bankers will choose to invest in that market at that time.

Forex trading does take place on a daily basis, in which nearly two trillion dollars of money flows every day, which is a huge number. Think about how many millions it would take to bring in a trillion total, and then consider that this is done every day – if you want to get involved where the money is, Forex trading is an “environment” where money is exchanged on a daily basis.

The currencies traded on the Forex market will be currencies from every country in the world. Each currency has its own three letter symbol that represents that country and the currency being traded. For example, the Japanese yen is JPY, the US dollar is USD. the British pound is GBP, and the euro is EUR. you can trade within many currencies in a single day, or you can trade into a different currency each day. Most trades made through a broker or any company require some type of fee, so you want to be sure of the trade you are making before making many trades that involve many fees.

Transactions between markets and countries happen every day. Some of the heaviest trading occurs between the euro and the dollar, then the dollar and the yen, and then the other most frequently seen trades are between the pound and the dollar. These trades happen all day and all night and take place in various markets. While one country is starting the day’s trading, another country is closing. Time zones around the world affect how trades are made and when markets are open.

When you trade from one market to another, involving one currency to another, you will notice the use of symbols to explain the transactions. All trades will look like this, with the zzzz of EURzzz/USDzzz representing the percentage of the trade. Other cases may look like this AUSzzz/USD, etc. When reading and reviewing your Forex statements and online information, you will understand it all better if you can remember these currency symbols involved.