Trading forex is the act of simultaneously buying one currency while selling another
for the purpose of speculation. As one of the world's most traded markets, it has an
average turnover in excess of US$4 trillion daily, which when compared to the New York
Stock Exchange - whose turnover is typically around US$50 billion daily - you can see how
popular this particular market really is.
Trade the Opportunity 24-Hours a Day
Investors choosing to trade forex can benefit from accessing the market 24-hours a
day. This is one of the key reasons that the forex markets are so popular with an array of
traders, as it offers them the exposure they so desire.
As a global currency market, it trades from Sunday evening through to Friday night,
following the clock where it then opens on Monday morning in Wellington, New Zealand;
progressing to Asia - spearheaded out of Singapore and Tokyo, before moving to London
coming to a close New York on Friday night.
As a leveraged product, investors require depositing only a small percentage of the
full value of their position. In turn, this means that the potential for both profits -
and losses - is significantly higher than in more conventional forms of trading.
Influencers: Forex Prices
Some of the key factors that influence forex prices are:
- Political and economic stability
- Monetary Policy
- Currency intervention
- Natural disasters (earthquakes, tsunamis etc)
In addition, trading forex offers a level of diversification, necessary to protecting
against adverse movements in both the equity and bond markets.
It is important to remember; trading on margin carries high risk and the possibility
exists that you could lose some or all of your investments, including your initial
deposits, making it unsuitable for some investors.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives,
and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month in over 50
countries. We provide access to a wide range of instruments including margined foreign
exchange, CFDs and, in the UK, financial spread betting
We constantly look to improve the performance of our platforms and expand our range of
services. The result is our customers benefit from innovative trading tools with
transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk for details.
Source: City Index
Joshua Raymond, City Index, +44(0)20-7107-7002, email@example.com