- Foreign Exchange - also known as the currency market, spot market, Forex or FX is the world's largest financial market.
- Trading volume is in the trillions every day!
- Governments, corporations and individuals buy and sell (import and export) each other's products and services.
- Every time a transaction takes place, one currency must be exchanged (i.e. Bought) for another (i.e. Sold) - this makes up the FX market.
- The benchmark currency for the world is the US dollar and the worlds major currencies are quoted against it. E.g. GBP vs USD or USD vs JPY.
- The major currencies of the world are:
- USD - United States Dollar
- GBP - Great British Pound or Sterling
- CHF - Swiss Franc
- EUR - The Euro
- JPY - Japanese Yen
- CAD - Canadian Dollar
- AUD - Australian Dollar
- NZD - New Zealand Dollar
- As traders, we aim to profit from the movements of a currency that occur through demand (buying of a currency) or supply (selling of a currency).
