What is the FX market?
  • •Foreign Exchange - also known as the currency market, spot market, Forex or FX is the world's largest financial market
  • Trading volume is in the trillions every day!
  • Governments, corporations and individuals buy and sell (import and export) each other’s products and services
  • Every time a transaction takes place, one currency must be exchanged (i.e. Bought) for another (i.e. Sold) – this makes up the FX market
  • •The benchmark currency for the world is the US dollar and the worlds major currencies are quoted against it. E.g. GBP vs USD or USD vs JPY
  • The major currencies of the world are:
    • USD - United States Dollar
    • GBP - Great British Pound or Sterling
    • CHF - Swiss Franc
    • EUR - The Euro
    • JPY - Japanese Yen
    • CAD - Canadian Dollar
    • AUD - Australian Dollar
    • NZD - New Zealand Dollar
  • •As traders, we aim to profit from the movements of a currency that occur through demand (buying of a currency) or supply (selling of a currency)
 


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