What FOREX TRADE Is All About – Understand The Foreign Market Exchange Nigerians

What FOREX TRADE Is All About – Understand The Foreign Market Exchange Nigerians

Here will be a brief note about Forex Trading and Market Exchange. From time to time i will keep an update on how you can trade the Forex Market successfully and be good in it.

According to Babypips.com;

The Foreign Exchange market, also referred to as the “FOREX” or “Forex” or “Retail

forex” or “FX” or “Spot FX” or just “Spot” is the largest financial market in the

world, with a volume of about $2 trillion a day. If you compare that to the $25

billion a day volume that the New York Stock Exchange trades, you can easily see

how enormous the Foreign Exchange really is. It actually equates to more than

three times the total amount of the stocks and futures markets combined! Forex

rocks!

What is traded on the Foreign Exchange?

The simple answer is money. Forex trading is the simultaneous buying of one

currency and the selling of another. Currencies are traded through a broker or

dealer, and are traded in pairs; for example the Euro dollar and the US dollar

(EUR/USD) or the British pound and the Japanese Yen (GBP/JPY).

Because you’re not buying anything physical, this kind of trading can be confusing.

Think of buying a currency as buying a share in a particular country. When you

buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy,

as the price of the currency is a direct reflection of what the market thinks about

the current and future health of the Japanese economy.

 Which Currencies Are Traded?

The most popular currencies along with their symbols are shown below:

Symbol Country Currency Nickname

USD United States Dollar Buck

EUR Euro members Euro Fiber

JPY Japan Yen Yen

GBP Great Britain Pound Cable

CHF Switzerland Franc Swissy

CAD Canada Dollar Loonie

AUD Australia Dollar Aussie

NZD New Zealand Dollar Kiwi

Forex currency symbols are always three letters, where the first two letters identify

the name of the country and the third letter identifies the name of that country’s

currency.

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