Forex Education

Why we trade Forex?

There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency. The other 95% is trading for profit

This daily volume is larger than the combined volume of all the world’s stock markets. The FOREX market is not centrally located. It is an over-the-counter market where buyers and sellers conduct business linked by telephones, computers, fax machines, and other means of instant communications.

If you're brand new to the Forex market, start here.
Firstly understanding forex quotes Reading a foreign exchange quote may seem a bit confusing at first.
However, it's really quite simple if you remember two things: 1) The first currency listed first is the base currency and 2) the value of the base currency is always 1.
The US dollar is the centerpiece of the Forex market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair.
For example, a quote of USD/JPY 110.01 means that one U.S. dollar is equal to 110.01 Japanese yen.