Of all the financial market,the forex market is perhaps the least well understood,and yet it impact us every single day of our lives,in different ways.
Whatever we buy or sell we have been influence by the forex market or accurately foreign exchange.
A simple enough example is when we travel from one country to another we have to change our own currency to the currency of the country we visiting.
whenever we have 1$ and we exchange it for 1400 naira we have carried out foreign exchange simple!
Every country in the world has it own currency.it is the quoted exchange rate of one country's currency rate against another,which is the simple principle on which the forex market is built.
WHAT IS FOREX TRADING
forex trading is short for foreign exchange trading,and represent the market which one country's currency is quoted against that of another.
its therefore provide the basis for everybody in the world from government,company and private individual to agree a rate of exchange between one currency and another.
without these market being quoted.the will be no agreed standard by which to set these rate.
To answer the question what is forex market?its a financial market in which trader take a view on the future direction of price.
In forex market your simply taking a view on the exchange rate movement between two currency pairs.
Its has a daily turn over of over 5 trillion dollar,making it one of the largest
market in the world dwarfed only by the bond market.
MAIN PARTICIPANT
-market maker
-multinational
-speculators
-central banks
-retail traders
Lets start with the market makers because they are the ones that decide future price,not me not you not even the central banks.
They make up the interbank liquidity pool.who between them control 80% of the forex market.
-Deutsche bank 20%
-UBS. 12%
-Citi group. 11%
-Barclay capital. 7%
-RBS. 7%
-Goldman sach. 5%
-HSBC. 5%
-Bank of America 4%
-J P morgan chase 4%
-merrill lynch. 4%
These are the people that matters has far has forex is concern.we call them the smart money.
If you can track them in the market and trade when you trade you will always be in the money.
