Foreign Exchange Market (Forex or Currency Market) is a worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trade between the different types of buyers and sellers in every day, except weekends.
The purpose of the Foreign Exchange Market is to help international trade and investment. The Foreign Exchange Market allows businesses to convert one currency to another currency. For example, this allows businesses in the United States to import European goods and pay Euros, even though their revenues in Dollars US.
In a typical foreign exchange transaction, one party to buy the quantity of one currency by paying a quantity of another currency. The modern Foreign Exchange Market began to take shape during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which will prevail Bretton Woods system.
The Foreign Exchange Market is unique because :
- The resulting trading volume market liquidity.
- Geographical spread.
- Continuous operation 24 hours a day except weekends, ie trading from 20:15 UTC on Sunday until 22:00 UTC Friday.
- Various factors affect the exchange rate.
- The low margins of relative profit compared with other markets of fixed income.
- The use of leverage to enhance profit margins with respect to Account size.
Forex Contract Spesification
- Over 50 currencies pair to trade (Major, Minor).
- Non Dealing Desk (NDD).
- Leverage ( Base On Account Type )
- Market Execution (No Requote).
- Low Swaps are Regularly updated to match the market standard.