Capital Street Fx | What is Forex Trading and how does it work?
Capital Street Fx | Forex (FX) is the marketplace where various national currencies are traded. The forex market is the largest, most liquid market in the world, with trillions of dollars changing hands every day. There is no centralized location, rather the forex market is an electronic network of banks, brokers, institutions, and individual traders. The forex market is open 24 hours a day, five days a week, except for holidays. Currencies may still trade on a holiday if at least the country/global market is open for business. Retail traders can open a forex account and then they buy and sell currencies. A profit or loss results from the difference in price the currency pair was bought and sold at. Forex are listed in pairs such as USD/CAD, EUR/USD, or USD/JPY. These represent the U.S. dollar (USD) versus the Canadian dollar (CAD), the Euro (EUR) versus the USD and the USD versus the Japanese Yen (JPY). Forex Lots Forex currencies trade in lots, called micro, mini, a...