Forex
Trade Forex with Orix Wealth
What is FOREX?
Forex, also known as “Foreign Exchange” or “FX,” refers to the global marketplace for buying and selling currencies. It is the largest and most liquid financial market in the world, with a daily trading volume exceeding $6 trillion. In the Forex market, currencies are traded in pairs, meaning you are simultaneously buying one currency while selling another.
Key Features of Forex Trading
Currency Pairs:
Forex trading involves trading currency pairs, such as EUR/USD (Euro/US Dollar) or GBP/JPY (British Pound/Japanese Yen). The first currency in the pair is known as the base currency, and the second is the quote currency.
Exchange Rate:
The exchange rate is the price at which one currency can be exchanged for another. It fluctuates constantly due to market forces like supply and demand, economic data, interest rates, geopolitical events, and more.
Market Participants:
The Forex market is highly decentralized and involves various participants, including central banks, commercial banks, financial institutions, corporations, governments, hedge funds, and individual retail traders.
Trading Hours:
The Forex market operates 24 hours a day, five days a week, across major financial centers in different time zones, including London, New York, Tokyo, and Sydney. This allows continuous trading opportunities.
Leverage:
Forex trading often involves leverage, allowing traders to control a larger position with a smaller amount of capital. While this can amplify profits, it also increases the risk of losses.
Spot Market vs Derivatives:
The Forex market can be divided into the spot market (where currencies are traded for immediate delivery) and the derivatives market (which includes forwards, futures, options, and swaps).