In the case of the Eurodollar, the Euro would be sold considering a certain amount of dollars. In all currency pairs the currency on the left will always be taken as the main base currency, while the other becomes the secondary or quote currency. In this platform the main object of value that can be exchanged are currencies, so an equal exchange is negotiated between a pair of the many currencies that can be used, but giving attention to those used in a specific transaction either to buy and/or sell one currency or another.Īt this point it’s necessary to understand what a currency pair is, so we’re going to name one of the most classic examples of this market, the Eurodollar, which can be identified as follows: EUR/USD. It should be noted that it’s not the only one of its kind in this industry, so it’s important to know the most essential elements of how it operates through Forex Trading. How does Forex Trading work?īefore starting to trade Forex, the main thing is to understand how it works, since it’s a market. It operates thanks to the global interbank network that is distributed in a total of 4 different and important financial centers located in different time zones of the world: London, New York, Sydney, and Tokyo.
Undoubtedly, it’s something you should pay attention to since it’s a union of all the stock exchanges around the world.Ĭurrently, the Forex Market works 24 hours a day, 5 days a week in what is known as the interbank market. Now, to be more specific, we can say that FOREX is the largest financial market in the world, with an approximate movement of more than 5 trillion dollars. The term FOREX is a shorter way of saying Foreign Exchange and already with this info you’ll have a pretty clear idea of what it is, as it is a market where currencies are bought and sold from various parts of the world.
0 kommentar(er)
