Foreign Exchange Overview
The Foreign Exchange Market – popularly called the FX market – is the world’s largest financial market. The global forex market is not based out of a central location, rather, it is a worldwide electronic network of forex traders, banks and financial institutions all carrying out the process of buying and selling national currencies.
With a minimum amount of cash and a computer or mobile device with an internet connection, anyone can become a forex trader, and participate in a market where close to $2 trillion is transacted on a daily basis.
Before you can start online forex trading, you must be aware of fundamental analysis and technical analysis.
Fundamental analysis involves assessing the value of a nation’s currency by examining such fundamental indicators as gross domestic product (GDP), employment rate, retail sales, interest rates, manufacturing and other economic factors that may directly or indirectly influence the national currency.
Technical analysis involves analyzing price patterns and movements to predict present and future trends. Based on this analysis, traders may choose to buy, sell or hedge their position.
A robust trading platform such as MetaTrader 4 is sought-after among traders and brokers for its advanced analytics capabilities, customization options, Expert Adviser (EA) functionality, and additional services that enhance the trading experience.