Now you’re probably wondering:
“Who are the biggest players in the Forex market?”
Well, it’s the banks as they are the market makers.
Followed by corporations who trade Forex to hedge their positions.
And lastly, individuals (like you and me) who speculate, shop online or travel overseas.
Next…
High liquidity – According to the Bank of International Settlements (BIS), Forex is the largest market in the world with over $5,000,000,000,000 traded each day. That’s Trillion with a “T” This means you can enter and exit positions easily with minimal slippage.
Low barrier to entry – Most Forex broker allows you to open an account with as little as $100.
Better risk management – You can trade micro lots which allows you to better manage your risk. And unlike Stocks, the Forex market seldom has gaps which mean you will rarely lose more than intended.
Trade anytime you want – The Forex market is open 24/5. This means you can place your trades anytime from Sunday around 5 pm EST to Friday around 4 pm EST (depending on daylight savings).
Low transaction cost – Unlike Stocks, most brokers don’t charge you a transaction cost. You only pay for the spread.
For example:
EUR/USD: You exchange Euro for the US Dollar.
EUR/JPY: You exchange Euro for the Japanese Yen.
AUD/USD: You exchange Australian Dollar for US Dollar.
Here are the 6 major currency pairs that are traded the most often and have the most liquidity:
“Who are the biggest players in the Forex market?”
Well, it’s the banks as they are the market makers.
Followed by corporations who trade Forex to hedge their positions.
And lastly, individuals (like you and me) who speculate, shop online or travel overseas.
Next…
What are the advantages of Forex Trading?
Now let’s look at some of the huge advantage Forex Trading offers that you can’t get elsewhere…High liquidity – According to the Bank of International Settlements (BIS), Forex is the largest market in the world with over $5,000,000,000,000 traded each day. That’s Trillion with a “T” This means you can enter and exit positions easily with minimal slippage.
Low barrier to entry – Most Forex broker allows you to open an account with as little as $100.
Better risk management – You can trade micro lots which allows you to better manage your risk. And unlike Stocks, the Forex market seldom has gaps which mean you will rarely lose more than intended.
Trade anytime you want – The Forex market is open 24/5. This means you can place your trades anytime from Sunday around 5 pm EST to Friday around 4 pm EST (depending on daylight savings).
Low transaction cost – Unlike Stocks, most brokers don’t charge you a transaction cost. You only pay for the spread.
So, what is a currency pair?
In Forex, you’re always dealing with currency pairs, and never just one currency alone.For example:
EUR/USD: You exchange Euro for the US Dollar.
EUR/JPY: You exchange Euro for the Japanese Yen.
AUD/USD: You exchange Australian Dollar for US Dollar.
Here are the 6 major currency pairs that are traded the most often and have the most liquidity:
- EUR/USD
- GBP/USD
- AUD/USD
- NZD/USD
- USD/CAD
- USD/JPY
