Currency Market Trading | Forex Trading Platform

1. Forex – The Currency Market Trading The foreign exchange market (Forex, FX, or currency market) is a global, decentralized, and over-the-counter (OTC) market for currencies. Through this market, foreign exchange rates are determined for all currencies. It includes all aspects of purchasing, selling, and exchanging currencies at current or determined prices. It is by far the largest market in the world in terms of trading volume. The main players in this market are the large international banks. Worldwide, financial centers serve as an anchor of trading between a variety of buyers and sellers around the clock, excluding weekends. Unlike the stock market, which determines the value of a currency based on its absolute value, the foreign exchange market determines a currency's relative value by determining the price of one currency to another. Ex: US $1 is worth X CAD, or CHF, or JPY, etc. Foreign exchange markets are governed by financial institutions and operate on several levels. As a result, banks turn to a smaller number of financial firms known as "dealers", which are involved in an abundance of foreign exchange trading. As banks are the major foreign exchange dealers, this market is sometimes called the "interbank market" (although insurance companies and other financial firms also participate). The transactions between foreign exchange dealers can be very large, involving hundreds of millions of dollars. Foreign exchange has little (if any) supervision due to the sovereignty issue when involving two currencies. By converting currencies, the foreign exchange market facilitates international trade and investment. As an example, it allows a US business to import goods from Europe, especially from Eurozone countries, and pay in Euros, despite earning revenue in USD. Additionally, it promotes direct speculation based on currency values and a carry trade strategy based on interest rate differentials between two currencies. The major portion of currency value, also known as a rate of exchange, is determined by the market. Changing one currency for another at a local bank is a simple kind of foreign exchange. It may also entail currency trading on the foreign exchange market. A trader is wagering, for example, that a central bank will loosen or tighten monetary policy, and that one currency will strengthen against the other.

2. During the 1970s, the modern foreign exchange market began to take shape. This came after three decades of government limitations on foreign exchange transactions under the Bretton Woods monetary management system, which established the rules for post-World War II commercial and financial connections among the world's main industrial governments. Countries steadily moved away from the Bretton Woods system's fixed exchange rate framework and toward floating exchange rates. Fido Markets is an International Forex Trading Company providing trading tools, trading platforms, news on the market, analytics, and other trading-related services. It provides the best online forex trading accounts with minimum deposit plans and zeroes commission schemes on all trades the traders make. Fido Markets provides traders with signal services and analytics to make the market simple. Beginner Traders can invest or do copy trading by copying the strategies of the best traders in the market.