GCM Asia About Us-What is FOREX?
What is FOREX?
Forex is known as foreign exchange or FX, is a global decentralized market for the trading of currencies. Forex market has taken its place as the indispensable financial markets and it’s one of the largest, most liquid financial market in the world. According to the Bank for International Settlements, the preliminary global results from the 2013 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity show that trading in foreign exchange markets averaged $5.3 trillion per day in April 2013.
How does Forex work?
Forex trading is the simultaneous buying of one currency and selling of another, these two currencies make up what is known as a “currency pair”. Common currency pairs are the Euro/US Dollar, US Dollar/Japanese Yen, Great British Pound/US Dollar, and US Dollar/Canadian Dollar.
What are the trading hours for the Forex market?
The spot FX market is unique among the world financial markets in that it’s open 24 hours a day, 5 days a week.
It opens on Sunday at 10:00 pm GMT, and closes on Friday at 10:00 pm GMT
Sydney opens at 10:00 pm to 7:00 am GMT
Tokyo opens at 12:00 am to 9:00 am GMT
London opens at 8:00 am to 5:00 pm GMT
New York opens at 1:00 pm to 10:00 pm GMT.
Who are the participants in the Forex market?
The main participants on the Forex market are national banks, commercial banks, financial institutions, insurance funds, companies and individual investors. However, the percentage of other marketparticipants is rapidly growing and now the list includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders.
How are currency prices determined?
There are various ways currency prices can change.
Economic and political conditions usually affect the value of a currency, along with interest rates and inflation.