Currency trading, also known as “foreign exchange,” “Forex,” or “FX” is one of the largest financial markets in the world. With over $4 trillion traded every day, the forex market is a global market that individuals and corporations can invest that the value of one country’s currency will rise, while another country’s currency will fall. There are many ways to trade the forex market. It can be traded fundamentally or technically, day-trading, scalping, swing trading, and long term. The value of currencies is influenced by economic factors, geo-political events, supply and demand, and market sentiment.
Currency exchange rates are always displayed in pairs. The first currency pair is referred to as the “base currency” and the second currency pair is referred to as the “quote”. If the EUR/USD currency pair was trading at 1.30, that means it would cost $1.30 to have 1€URO. The most actively traded currency pairs traded are called the “majors”. They include the U.S. dollar, euro, Japanese yen, British pound, Swiss franc, Canadian dollar and Australian dollar. Pairs not including major currencies are referred to as “exotics.”
Forex is an over-the-counter market, meaning trading is not done on an exchange, but between banks, major liquidity providers, and forex brokerages. Traders can trade forex using leverage with software provided by their broker. One of the most popular retail Forex trading platforms on the market is the MetaTrader 4 (“MT4”) platform. Institutional traders and banks trade with Currenex.
The Forex market is open Sunday 5 PM ET to Friday 5 PM ET. Beginning in Sydney, it makes its way around the globe to Tokyo, London, and New York as each business day opens. Open 24 hours a day, it is the world's most traded market.
Whether you are getting started in forex trading or are a professional trader, Alpari US LLC offers you insightful technology and trading tools with straight to market execution*. Alpari has a variety of platforms that provide you with low spreads and the latest technology in trading. As one of the largest forex brokers worldwide, Alpari is regulated by eight authorities and is a member of four exchanges. Every account at Alpari receives a licensed and professionally trained Forex Specialist. Enjoy having one broker for all your trading needs with Forex and Futures.
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*Alpari US LLC provides traders with the option to choose either ECN or dealing desk execution. Please speak with one of our specialist to find out which account is right for you.
A demo account is a great way to get familiar with the Forex market and software and practice in a risk-free trading environment. Using real-time market data, demo accounts enable traders enhance their risk management skills and develop strategies that can be applied to live trading.
