The foreign exchange market (Currency, Forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. Forex transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when world over countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system till 1971.
Today, the Forex market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements. Since then, the market has continued to grow. According to Euromoney's annual Forex Poll, volumes grew a further 41% between 2007 and 2008.
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Hey Everybody,
ReplyDelete"Which Forex pair and time frame is best to trade" is the frequently asked question and I want do give you the EXPLICIT ANSWER in this comment.
Are you expecting that I am going to say something like EUR/CHF on 5-minute time frame or GBP/USD on daily...? No, it is not so simple, but SIMPLE ENOUGH we can figure it out!
The "PROBLEM" is that markets change over time. If EUR/USD was a well trending currency pair a few years ago, today it is another one.
I actually want to let you know about a SPECIAL INSTRUMENT that I use to find the BEST TRENDING PAIRS among all the Forex pairs.
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The instrument inspects 34 Forex pairs on all time frames from minute to monthly. This way you pick the best trending pair and time frame at the current time.
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