123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

An Insight Into Forex

By Author: Ackley Cooper Shaw
Total Articles: 211

The term forex is an acronym that stands for foreign exchange and connotes the trading of currencies of different countries in the international market. The forex market is an extremely volatile arena and a decentralized institution. It rose as a result of the breakdown of the gold standard (an important unit of exchange) in the early 1970s because of its inflexibility.

The Forex market is made up of a list of participants that are essentially banks (central / commercial banks), governments, MNCs (multinational corporations), institutional investors and hedge fund. Private individuals like the common man also feature in the list.

The trade of currency involves the buying of the currency of one country and selling another at the same time- the currencies are trades against each other. So it is always traded in pairs. The idea of forex trading is somewhat similar to that of buying stocks, shares, debentures, etc. The main objective of doing forex trading, which goes without saying, is to make money through the process.

The market is flooded with several forex brokers to help you deal with the buying and selling of currencies. They get their share / commission for rendering services and earns through the bid-ask spread method – the broker keeps the difference in price (between the ask price and bid price) for the currency that gets traded as a part of his compensation. Some of the renowned brokers are pfgbestforex, Citifxpro, Avafx etc.

The exchange rate plays a pivotal role in forex trading. The exchange rate of a particular currency against that of others reflects the condition of the country's economy if placed on a table of comparison with the other countries' economies and where it stands. This also means that the value of the certain currency is a strong indication of what the global market thinks of the country’s economy (the currency belongs to), today and later on.

The forex market is a market that never sleeps, it remains open and transactions take place 24 hours 365 days a year- only the market in a particular region closes and the other one opens, and some markets are open simultaneously allowing dynamic foreign exchange to take place. It is greatly monitored by the news and events taking place worldwide which in turn affect the appreciation and depreciation of currencies around the world.

The most traded currency is the US dollar which is denoted by USD and the three most important regions of the forex market are Australasia, Europe and North America.

Author’s Bio: Ackley has penned down different write-ups on forex services.In this article he briefly describes many things concerning pfgbest forex .

Total Views: 36Word Count: 441See All articles From Author

Investing / Finance Articles

1. How To Claim Unclaimed Fixed Deposits From Banks
Author: Arwind Sharma

2. 12 Month Payday Loans Direct Lenders
Author: Carol Adams

3. Where To Look For Ongoing Projects In Mumbai In 2017?
Author: Mira

4. Benefits Of Hiring A Tax Accountant
Author: Karen Lee

5. Impact Of Gst On Manufacturers And Their Distribution Networks
Author: Rahul Sutraj

6. Quickly Find Ideal Program For Commercial Lending In Atlanta
Author: John Bairstow

7. Why Emv Credit Card Terminals Are Necessary For Business?
Author: Satya Nadella

8. Get Set For A Great Retirement Life
Author: Deepesh Reddy

9. Payday Loan In India, Payday Loan India, Payday Loans India
Author: Mayank Aswal

10. Mashreqpay Program To Ease Your Personal & Business Life
Author: Jeff Usman

11. Maximize Your Profitability With Trade12 Trading Services
Author: Trade12

12. The Best Stock Market Advisory Services Discerns The Best Time To Invest The Indian Stock Market
Author: Dharmesh Patel

13. Opt For Sebi Approved Stock Option Advisory Services For Better Investment Security
Author: Dharmesh Patel

14. How To Find Best Mortgage Loan Software
Author: sapana rathod

15. Unravel Your Taxation With The Accomplished Cpa In Memphis Tn!
Author: Garrett A. Surles

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: