Forex Market size and liquidity

In order to understand the functioning of the forex or the foreign exchange trading markets, it is primarily necessary to comprehend what is meant by the term ‘relative value’. It can be substantiated as follows. Every country in the world has its own distinct currency and it is possible to compare the value of the currency of one country to that of the currency of another country by determining a secular value which is popularly referred to as the relative value. It is always necessary to keep in mind that the relative value will never be a regular value but rather it will continue to change across regular time intervals influenced by the alterations in the value of the currency in the financial markets.

Forex has often been referred to as the market closest to the perfect competition. According to the BIS, average daily turnover in traditional foreign exchange markets is estimated at $3.21 trillion. Daily averages in April for different years, in billions of US dollars, are presented on the chart below:

This $3.21 trillion in global foreign exchange market "traditional" turnover was broken down as follows:

• $1,005 billion in spot transactions
• $362 billion in outright forwards
• $1,714 billion in forex swaps
• $129 billion estimated gaps in reporting

In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.

Exchange-traded forex futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts. Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20).

Average daily global turnover in traditional foreign exchange market transactions totaled $2.7 trillion in April 2006 according to IFSL estimates based on semi-annual London, New York, Tokyo and Singapore Foreign Exchange Committee data. Overall turnover, including non-traditional foreign exchange derivatives and products traded on exchanges, averaged around $2.9 trillion a day.

What is FOREX?

Foreign Exchange Market (Forex) is the arena where a nation's currency is exchanged for that of another at a mutually agreed rate. It was created in the 70's when international trade transitioned from fixed to floating exchange rates, and nowadays is considered to be the largest financial market in the world because of its tremendous turnover

Understanding Forex Trading

The Foreign Exchange market, also referred to as the “Forex” or “FX” market, is the largest financial market in the world, with a daily average turnover of well over US $1 trillion - 30 times larger than the combined volume of all U.S. equity markets. The word FOREX is derived from the words FOReign EXchange. The US Dollar is the Centre-piece - The US dollar is the centre-piece of the Forex market and is normally considered the “base” currency for quotes

Currency Trading The Alternative Investment

Currency Trading the Alternative Investment is a perennial bull market with profit potential in both rising and falling currency trading markets. Currency Trading, also called fx, and forex trading can be very profitable. In particular, the cash/spot Fx markets possess certain unique attributes that offer the trader an unmatched potential for huge financial profits in any market condition or any stage of the business cycle.

On our website you will find all the information and resources you need to trade foreign currencies successfully, including posts and tips on currency, currency trading, currency exchange rates and forex trading software. Continue reading »

Introduction to How Exchange Rates Work

Maybe you've traveled to Mexico or Canada, and exchanged your American dollars for pesos or Canadian dollars. Or, perhaps you've traveled from England to Japan and exchanged your English pounds for yen. If so, you have experienced exchange rates in action. But, do you understand how they work?

You've probably heard the financial reporter on the nightly news say something like, "The dollar fell against the yen today." But, do you know what that means?

In this article, we'll tell you what exchange rates are and explain some of the factors that can affect the value of currency in countries around the world.

where it trades right now. What do you think?

where it trades right now. What do you think?

A: For five years we have talked about it. We were following policies which were, in my view, five years ago, were certain to produce a weaker dollar over time. I never know what it is going to do in a month or a year, and maybe I do not know what it is going to do in five years, but I think I know what it is going to do in five years.

And as long as we force-feed a couple of billion dollars a day to the rest of the world, they take it whether they like it or not, because we buy goods, buy two billion a day more than we sell goods to the rest of the world. The dollar is going to get weaker over time. And the government can talk about how it is in our interest to have a strong dollar, but we are not following policies that lead to that, and it is just a consequence and it will just continue to be. If you do the same thing over and over again, you are going to get the same result and we are doing the same thing now that we were doing two, three, five years ago, and the dollar will weaken on an irregular basis, in my view, for some time to come

A Short Introduction To Global Forex Trading

Forex is the world largest and most liquid trading market. Many consider FOREX as the best home business you can ever venture in. Even though regular people have had the opportunity to take part in trading foreign currencies for profit since 1998, it is just now becoming the cool, hip, new "thing" to talk about at parties, business events, and other social gatherings. Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading for income and profit because of its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities. But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, the mind has to be open and the slate has to be clear for starting out fresh with the CORRECT information.

EURO USD Daily Technical Analysis for Forex Traders

Overnight news suggests that the ECB will raise rates soon; traders caught wrong-footed and covered shorts hard. Stops noted above the 1.5630/40 area and the press to fresh highs at 1.5680 area likely to hold as resistance near-term. Today’s PPI data could ignite more buying if disappointing.

The downside correction is likely over if a close is above the 1.5640 area today. Crude prices will likely continue offering a bit of volatility support on dips. Longs likely to have rolled up stops under the 1.5520 area so volatility possible. I would stay away from the short side for the rest of this week

Marketiva Guide

Here you can see currency pairs in real time:



Currency pair - name of the currency paris
Last - last value of the pair
Bid - value for selling
Offer - value for buying
Change - diversion from the daily pair values
High - max value of currency pairs
Low - min value of currency pairs
Time - last change in currency pairs

USD JPY Daily Forex Analysis for Day Traders

Rate falls back after a weak rally in Asia; traders note that stops were building in size under the 103.50 area with bids layered below to 103.00 area. Overnight low and action played out that scenario and the rate is set to rotate higher. That push higher needs to stall at the 103.80 area again to stay short and ADD to position. Stops said to be large enough to drive the rate through bids for a test of the 102.80 area but bids apparently were big enough on the first tryRead more

Simple Forex Toolbar

Exclusive Forex trading Tools Package in one software called "Simple Forex Toolbar", include many important tools: live Forex market news, daily and weekly analysis reports, fundamental and technical

State Bank keeps tight lid on forex rates

VietNamNet Bridge – The US dollar has remained weakened internationally since September, and the Vietnamese dong, its foreign exchange rates largely pegged to the value of the greenback, has been under strong pressure to appreciate despite Government efforts to keep it in check. Economists are expressing doubts over the State Bank of Viet Nam’s long-term ability to stabilise the dong. HSBC economist Prakriti Sofat, in a November 29 report, said, "Double digit inflation and the risk of [inflation] in the teens suggest that it’s only a matter of time before the central bank gives up its policy on dong appreciation.

Forex Strategy Builder 2.2.1.3

Using this program you can quickly create and test a trading strategy for the Internet FOREX market. You can also get better understanding of the technical indicators without writing scripts or using formulas. All indicators are built in the program and their parameters and logic can be chosen from a drop-down menu. Detailed charts will visualize the changes of the FOREX prices, all the deals made and even the change in your bank account.

Forex Markets React to Auto Bailout

Once again the US automaker bailout is in the news and interbank Forex markets are reacting. The white house and congressional Democrats reached a deal that on a $15 billion dollar deal that would bailout and restructure the big 2 automakers.

Markets Up

The news bolstered global shares on world stock markets by 0.78%. The interbank Forex market quickly reacted and b the US dollar fell against the Euro and the Japanese Yen fell broadly. “The market is focusing very much on the bailout deal for automakers,” IDEA global senior strategist Maurice Pomery said. “We’re seeing a bit of a short squeeze that is pushing the yen lower,” he added

US and European Rates Drop Further

LIBOR Falls

The cost of three month dollar loans between banks fell ahead of an anticipated rate cut by the US Federal Reserve. The interbank lending rate for 3 month dollar loans known as the London Interbank Offered Rate (LIBOR) fell to just over 1.87 percent according to the British Bankers Association. This move is expected to affect the interbank Forex market as bankers await the decision of the Federal Reserve.

Fed Expected to Cut Rates Further

The Fed is expected to cut its rate to 0.50, it’s lowest in history. At the same time the rate for 3 month loans in Euros known as the EURIBOR fell 0.04 percentage points to 3.25 percent. The equivalent rate for British Pounds fell 0.05 percentage points to around 3.13%