What Do You Need To Know In The Forex Market
Forex markets , which have become in the eyes of investors in recent years, are a new investment environment for many investors. The currency market, which is an old history and known as the FX or Forex market , is the world’s most traded financial market. The FX market’s daily trading volume of $ 5 trillion is about 200 times greater than the trading volume of the New York Stock Exchange, the world’s largest stock exchange. By the time of the recent turn, important players in the foreign exchange market consisted only of central banks, big banks, treasury departments of multinational corporations and major financial institutions.
Advantages Of Forex market
The fact that the Forex market is a highly liquid market is a major advantage for both buyers and sellers . Unlike other markets, the FX market operates on a 5 day / week basis, 24 hours a day / 5 days a day, without interruption. Monday Morning starts in Sydney, Australia, then continues in Tokyo and London, and ends in New York. The advantages such as leverage, low initial investment and low transaction costs are especially attractive for forex traders in terms of small investors. Small investors can get high returns on forex markets with a small amount of capital with the right transactions.
Factors affecting Forex market prices are generally the reports of central bank decisions, global news, political developments and key analysts. What determines their currency? The currency of a country is a direct reflection of what it thinks about the current and future health of the economy of that country. While a growing economy leads to a strong currency, an economy that is expected to slow down and stagnate will be born with a weak currency.