Currency Trading

Currency trading or forex market is one of the world’s largest financial products. Unlike stock market where any one can buy or sell a single stock, currencies are traded against one another as pairs and each pair is typically quoted out to four decimal points. Forex exchanges are opened 24 hours in most part of the world but in India the market is open from 9 am to 5 pm only.

The majority of the volume in currency trading is confined to only 18 currency pairs compared to the various products. The most traded pairs are the U.S Dollar(USD), Canadian Dollar(CAD), Euro, British Pound(GBP) and Japanese Yen (JPY). Within a few year an increasing amount of stock traders are taking interest in currency trading. One of the most important factor is supply and demand. When the world needs more dollar, the value of the dollar increases and when there are too many circulating the price drops. Other factors like interest rates, economic data and geopolitical tensions are just a few factors that affect currency prices. Traders should stay up-to date on the global market trends to make it a lucrative and profit making opportunity.