BUSINESS
What Is
LegacyFX Introduction
FOREX TRADING?
WHAT IS FOREX TRADING?
Foreign exchange – or forex – is the exchange of currencies on the global marketplace. Whilst many people might associate this with going on holiday, forex trading is on a larger global scale.
In fact, traders trade currencies
yed as GBP/USD. The currency on
around the world 24 hours a day,
the left is the base currency, and the
6 days a week.
currency on the right is the quote
How Are Currencies Traded?
currency. The base currency is always 1 unit, and the quote currency is how much
The US dollar is involved in most
is needed to buy 1 unit of the base
forex trading, with the second most
currency.
popular currency being the euro. Other major currencies include the Japanese yen, the British pound, the Swiss franc, and the Australian, Canadian, and New Zealand dollars.
What Affects the Forex Market? Like all markets, the Forex market will fluctuate depending on supply
All forex trading is expressed in
and demand. However, currencies
currency pairs or the two currencies
can also be influenced by central
that are being exchanged. For exam-
bank policies, interest rates, and
ple, an exchange of British pounds
the political environment within the
(GBP) and US dollars (USD) is displa-
country in question.
For more information about Forex trading, visit the LegacyFX blog.