Login
Register
Login

What is forex?

What is forex?

Forex is short for “foreign exchange” (sometimes abbreviated to just FX) and is the largest, most liquid market in the world with an average daily trading volume exceeding $5 trillion. Now, when we say it is the largest market in the world, we mean it! The largest stock market in the world, the New York Stock Exchange (NYSE), trades a volume of ONLY about $22.4 billion each day.Peanuts! The FX market is a global, decentralized market where the world’s currencies change hands. Exchange rates change by the second so the market is constantly changing.Just like you. Constantly changing your mind whether you want to be a trader or not… No more excuses! Do it!

When can you trade forex?

The forex market is open 24 hours a day and 5 days a week, only closing down during the weekend. The forex market can be broken up into four major trading sessions. The Sydney session, the Tokyo session, the London session, and Trump’s favorite time to tweet, the New York session. Some traders prefer to differentiate sessions by names of the continent. This is known as the ‘forex 3-session system’. These sessions consist of the Asian, European, and North American sessions.

What can you trade in the Forex market?

Money.
Duh.

Trading in the forex market, it will always involve two currencies at a time.

These are called ‘currency pairs’,

But while you can trade almost any currency pair in theory, there are certain pairs that are consistently the most traded. These are referred to as ‘major pairs’ or ‘majors’. These major pairs make up 80% of the entire trading volume in the forex market

“Major pairs include: EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, NZD/USD.”

Understanding currency pairs

Currency pairs are made up of the base currency and the quote currency. The difference in price is where you’ll make your profit or loss.

The currency that is listed first is called the base currency, and the currency listed second is called the quote (or counter) currency.

At ProFX Club, we are dedicated to empowering traders with the tools, resources, and support they need to succeed in the dynamic world of forex trading. Whether you’re just starting your trading journey or looking to take your skills to the next level, we’re here to help you achieve your goals.
Education
Strategies
Company
Contact
  • © Copyright 2024. All Rights Reserved. ProFxClub