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Forex Trading

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What is Forex Trading?

The most popular and most lucrative financial market in the world, Forex stands for foreign exchange. During any given day, the global FX market turns over an estimated $5.5 trillion, and that number has been steadily rising over the past years.

But what is Forex? The global foreign currency exchange market allows banks, governments, businesses, and individuals to speculate on the rates of exchange for currencies around the world. The top currency trading pairs in the world are:

  • USD/JPY (U.S. dollar/Japanese yen)
  • AUD/USD (Australian dollar/U.S. dollar)
  • EUR/USD (euro/U.S. dollar)
  • GBP/USD (British pound/U.S. dollar)
  • NZD/USD (New Zealand dollar/U.S. dollar)
  • USD/CAD (U.S. dollar/Canadian dollar)
  • USD/CHF (U.S. dollar/Swiss franc)

While these few currency pairs account for over 90% of all currency trades, Forex traders often combine any number of other currency pairs to get the greatest values for their trades. If you believe that your currency in your home country is going to fall short against another in the coming weeks or months, you’ll sell (short) your currency to buy (long) the currency you believe to be more favorable. When your own currency climbs again, then you’ll buy more of it, and so on.

Of course, there are risks associated with Forex. but with the right guidance and technology, you can make the best decisions to gain the most value for your trades.

Forex Market Scope

Trading on the Forex market is much like buying and selling stocks, but – unlike NASDAQ or NYSE – it does not have its own centralized exchange or location. Instead it operates as a market between banks and is run electronically on a network of financial institutions all over the world.

The stock market may have regular hours for trading, but Forex trading happens around the clock, 24 hours a day with major financial centers in all time zones. Furthermore, while the stock market may have very long bull or bear cycles, Forex moves and changes by the minute. No matter what the stock market is doing, you can make money with Forex. Forex is also unregulated, and so insider trading is not a problem. This opens currency trading up to a whole range of strategies.

MTFX: The Best Forex Solutions for US Businesses

There are a lot of Forex platforms available to businesses in the US today, but you’ll notice a major difference between these platforms and MTFX. With MTFX you get cutting edge technology to keep you up to date on the latest movements in the markets in which you trade. You also get expert advice and insights from a knowledgeable team of account management professionals.

Launched in Canada in 1996 and now branching out into the United States, MTFX is one of the most trusted and largest Forex and international payment processing providers on the market today. Our trading platform, Online Dealing gives you the power to control and manage all of your Forex and global payment requirements at any time of the day or night, either online or on your phone or other mobile device.

For more information, contact us at MTFX today and learn how we can help you with your personal or business foreign exchange and international payment needs.

Sources: Economist.com, September 14, 2013.
nyxdata.com, last accessed April 21, 2015.
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