Let us what is Forex trading, its history, few terms, etc., in this coming article. Read through. FOREX is derived from the word Foreign Exchange. This is the largest financial market and is open 24 hours a day. Forex market works for 5 days, that is, 24x5. Forex market trades between 6:00 p.m. Central U.S. time on Sunday night and 2:00 p.m. Central U.S. time on Friday afternoon. You know how much turnover this market makes in a day, US$1.3 trillion. This market does not have any fixed exchange and it changes every day.
It is traded among banks, brokers, financial institutions, dealers, and private individuals. It is also referred to as “Interbank” exchange. “Inter” means between and “Bank” means institutions where you deposit money. Hope you understand what “Interbank” means. It doesn’t mean money should be exchanged only between financial institutions. It is even done between two individuals. Bids mean buy and offer or ask means sell. Few majors in this market are USD, GBP, CHF, EUR, JPY, AUD and CAD. In any foreign exchange terminology, you might have noticed that there are three letters. First two letters represent the country and the third letter represents the currency of the country. For example, in GBP, GB represents the country Great Britain and P represents the currency Pound. These currencies are always traded in pairs.
