Foreign currency exchange market is being discovered by new traders every day. While there is hesitancy due to lack of familiarity with this exchange, the alure and the advantages are quite clear. Market is open 24 hours a day for five days, the liquidity is high and the initial investments are low. Like other financial markets, before you invest in it you should learn the basics of market mechanisms. Special considerations should be given to risks and the ways to mitigate them.
- The opening and close of the London and New York trading sessions, as well as the London / New York session overlap, present five of the most significant and liquid trading times.
- Some equity markets exist for hundreds of years, but it was not until the 1971 Bretton Woods accord that Forex markets became operational.
- Many international companies use the Forex market to hedge their currency exposure and even to lock in future exchange rates to gain clarity over operating expenses.
“Forex trading, also known as foreign exchange or FX, refers to buying and selling currencies against each other.”