There are quite 160 different national currencies worldwide. the foremost commonly traded currencies are the US dollar, the euro and therefore the Japanese yen.
They derive their relevance from the economic strength of their countries of origin. Currencies also are referred to as exchange . These are traded on the so-called Forex market.
Among the various different investment instruments, forex trading is a beautiful opportunity to extend saved capital from the comfort of your desk.
What exactly is forex trading, which terms you would like to understand , and the way you’ll learn forex trading, what the currency market definition is – we explain this intimately on this page.
On the forex market you’ll exchange domestic currency (euro) for foreign currency (e.g. US dollar) – and the other way around (currency trade). If you look closely, there are always 2 opposing FX trades being made. Currency trading is trading in foreign currencies at exchange rates on the Forex market.
In addition to credit institutions like banks, the foremost important participants within the forex market also are the larger industrial companies, but also forex brokers and trading houses and eventually the private forex traders.
Central banks, motivated by policy , also intervene within the exchange market, for instance to revive the equilibrium of the exchange market with the assistance of an intervention if necessary. The Forex – trading hours begin on Sunday at 22:00 (CET) and endways Friday at 23:00 (CET).
Most of the currency trading or currency trading doesn’t happen on the stock exchanges, but directly between the credit institutions. this is often where the name interbank market comes from. this is often where the internationally established credit institutions trade foreign currency. there have been also dedicated exchange exchanges in Germany until 1998, but these were hardly involved in exchange trading and have therefore been largely abolished.