What Is Forex Trading?

BUSINESS

What Is

LegacyFX Introduction

FOREX TRADING?

WHAT IS FOREX TRADING?

Foreign exchange – or forex – is the exchange of currencies on the global marketplace.

Whilst many people might associate this with going on holiday, forex trading is on a larger global scale.

In fact, traders trade currencies

yed as GBP/USD. The currency on

around the world 24 hours a day,

the left is the base currency, and the

6 days a week.

currency on the right is the quote

How Are Currencies Traded?

currency.

The base currency is always 1 unit, and the quote currency is how much

The US dollar is involved in most

is needed to buy 1 unit of the base

forex trading, with the second most

currency.

popular currency being the euro.

Other major currencies include the Japanese yen, the British pound, the Swiss franc, and the Australian, Canadian, and New Zealand dollars.

What Affects the Forex Market?

Like all markets, the Forex market will fluctuate depending on supply

All forex trading is expressed in

and demand. However, currencies

currency pairs or the two currencies

can also be influenced by central

that are being exchanged. For exam-

bank policies, interest rates, and

ple, an exchange of British pounds

the political environment within the

(GBP) and US dollars (USD) is displa-

country in question.

For more information about Forex trading, visit the LegacyFX blog.