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 The forex exchange market (also known as forex) is the largest and most dynamic market in the world. Forex allows different entities such as banks, large companies and even individuals to exchange currencies, to trade one currency for another.
The transactions consist in buying one currency by paying with the other, so forex is based on currencies’ pair rates. These rates change constantly during the daily sessions, depending on several economical and political factors.
The most important trading centers are London, New York, Tokyo, Hong Kong and Singapore. According to the time zones, the forex day starts in Asia at Tokyo, Hong Kong and Singapore. When the Asian session ends, the European session will start at London. The North American session from New York is the last one, but when it ends, the new trading day starts in Asia. Thanks to the geographical layout, the forex market is opened continuously except weekends. This means that the trading starts at 20:15 GMT on Sunday and runs until 22:00 GMT on Friday. Currently London is the largest forex trading center in the world, accounting for one third of the global daily market turnover. The second trading center is New York with 16% of the daily turnover while Tokyo is the third with just 6%. The daily volume of the forex market is more than $4 trillion. This year, the average trading volume in London reached more than $1.75 trillion daily. In New York, the daily volume is about $754 billion while Tokyo has only $280 billion worth trading volume. The forex market increases constantly and one of the factors that encouraged that trend is the appearance of the online trading platforms. Thanks to this easy to use software, any individual can trade on forex using a computer or even a mobile phone. Etoro, Ava FX and Finexo are just few of the most reliable forex trading platforms currently available on the web. |
