Factors that affect the Forex Market

Table of Contents Factors that affect the Forex Market First of all, the price or rate of the currency pair is determined by supply and demand. The currency pair rates are determined by the market forces of supply and demand for foreign exchange. On top of this, there are also external factors that can affect forex […]

Why Trade Forex?

Table of Contents Two common reasons that you would normally hear with trading and investing are: Speculation and Hedging. Often used to convey the same thing; financial trading strategies. In reality, both speculation and hedging are in reality quite different in terms of their purpose and objectives.   Speculation Hedging Objective To make money (profit) […]

When do the Forex Market open?

Table of Contents Forex Trading Hours What is the best timing to trade? The forex market operates 24 hours everyday for 5 days a week. It is able to operate round the clock, because the trading hours are divided into four sessions across four time zones: Sydney hours, Tokyo hours, London hours, and New York […]

Who are the Forex Market Participants?

Table of Contents Before we look into the entities involved in the forex market, let’s look at forex market structure to better understand how each participant falls into the picture. Forex Market Structure Unlike the centralized markets such as the New York Stock Exchange (NYSE) which can be very monopolistic in the sense that only […]

How to read a Forex Quote?

Table of Contents Introduction to Forex Quotes Forex trading is speculating the rise and fall of the exchange rates. All forex currency pairs have two countries involved, an example EUR/USD or USD/JPY. In each forex transaction, what you’re doing is, you buy one currency and at the same time you sell the other. This applies […]

How are currencies traded?

Currency Pair Countries USD/BRL United States / Brazil USD/HKD United States / Hong Kong USD/SAR United States / Saudi Arabia USD/SGD United States / Singapore USD/ZAR United States / South Africa USD/THB United States / Thailand USD/MXN United States / Mexico USD/RUB United States / Russia USD/PLN United States / Poland USD/CLP United States / […]

What is Forex Trading?

Table of Contents What is Forex Trading and what is traded in Forex? The answer is actually quite straightforward- money, specifically currencies. Forex trading may sound abstract since we do not actually buy and hold any physical currency. Think of buying a currency as buying a share in a particular country, similar to buying shares in a company. […]

What is Foreign Exchange (Forex | FX)

Table of Contents Foreign exchange, also commonly referred to as Forex or FX, it is the largest financial market in the world where companies or individuals exchange one currency for another currency – if you have ever travelled abroad, then it is likely that you have participated in a forex transaction. Example; Bill is traveling […]

What is a Pip?

Table of Contents Definition of a Pip The unit of measurement to express the change in value between two currencies is called a “pip”, also referred to as price interest point. A pip is the smallest whole unit price move that an exchange rate can make, based on forex market convention. Most currency pairs are […]