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Jul
30

In a 24-hour market, Forex trading (Currency Trading) begins each

By admin
In a 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, then London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night. Generally in the U.S., the FOREX market is available for trading from Sunday at 5:00 PM Eastern Time till Friday at 4:00 PM Eastern Time except for holidays.

When is the best time to trade the FOREX market?
Generally when a country’s banks and equity markets (stock, commodities, bond, etc.) are open. For instance, trading the Euro may be best from 1 a.m. Eastern Time through 9a.m. Eastern Time.

Where is the central location of the FOREX market?
FOREX trading is not centralized on an exchange, as with the stock and futures markets. The Forex market is considered an Over the Counter (OTC) or Interbank market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.

What are the most commonly traded currencies in the FOREX markets?
The most often traded or ‘liquid’ currencies are those of countries with stable governments, respected central banks, and low inflation. Today, over 80% of all daily transactions involve trading of the major currencies, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and the Australian Dollar.

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3 Comments

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March 5th, 2008 at 11:15 pm

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Forex Day Trading
June 22nd, 2008 at 12:43 pm

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