Following are the some of the most frequently asked questions in forex trade:
- Define foreign exchange? Foreign exchange, simply put, means trading in currency pairs. You purchase and sell a currency pair at the same time. This trading is done according to the international exchange rate that prevails for that particular day. It is the biggest of all financial markets. The daily approximate turnover exceeds$ 1.5 trillion.
- Do we have forex exchanges or forex trading houses? Unlike stock exchange markets, there are no forex trading centers or exchanges. There are only virtual over the counter and interbank markets. The forex brokers and traders connect with each other through forex trading platforms. Transactions are carried out over phone or through emails. The interbank rates are fixed by a consortium of banks.
- Who are the stakeholders in a forex market? There was a time when the forex trading systems were the exclusive preserve of banks, large financial institutions, governments, big time speculators and investors. They had large sums of money at their disposal and used to call the shots. It won’t be an exaggeration to state that they were in a position to manipulate the value or the price of currencies and often resorted to such a practice to make a windfall. But these days, with rapid strides being made in the arena of information technology, the latest technical tools are being used to get the best out of the forex trading strategies. These days, we find almost all and sundry participating in forex trading. We now see retail investors, speculators, corporations, registered, and authorized dealers jumping into the bandwagon.
- What are the trading hours for forex trading? Unlike other financial markets, the forex markets are open round the clock. A usual or routine day begins in Sydney, moves to Tokyo, and then to London ending in New York. Sydney, Tokyo, London and New York are the major markets. Trade happens on all the time zones based on these markets. Most of the online forex trading and trading in real time are dictated by price fluctuations in these markets.
- Which currencies are traded the most in the forex markets? It is understood and implied that currencies of countries that have stable governments will enjoy a high exchange value and rate compared to currencies of countries that are underdeveloped or undeveloped. There the currencies of USA, UK, Canada, Australia, Japan, and Switzerland are traded the most as these countries are highly developed not only economically but socially and politically as well. A reliable forex broker will provide the trader with good forex trading tips on which currency pairs to trade with. Almost 85% of all currency transactions comprise the major currencies like USD, GBP, Swiss Franc and so on.
- Do you need to make heavy investments for trading in forex? At UFX Markets you need to invest only $100 for opening an account and start trading. Your investment level will depend on the sort of leverage spread you are seeking.
Is UFX Markets a reliable forex trading broker and platform? UFX Markets is one of the reliable brokers at present in the forex trading industry as they are a registered broker and offer unbeatable features