Forex trading, if you’re among those wondering, is simply the direct access trading of several foreign currency types. Due to recent advances in technology, small traders, through the use of the various online platforms of trade, can benefit from forex trading whereas in the past, forex trading was basically restricted to large institutional traders and banks.
The currencies of the world are always traded in pair and are on a floating rate of exchange, e.g. Dollar/Yen, Euro/Dollar etc. Trading of the world’s major currencies account for about 85% of all transactions that are carried out on a daily basis. For investment purposes, four major currency pairs are usually used. They include Euro/US Dollar, US Dollar/Yen, British Pounds/US Dollar, and US Dollar/Swiss franc. In the trading market, this is how they look: EUR/USD, USD/JPY, GBP/USD and USD/CHF. It should be noted that there aren’t any dividends paid on currencies.

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