Forex (FX) defines as currencies are traded. Forex market is the largest, most liquid market in the world meaning that under normal market condition people can buy and sell currency as and when they please. FX has average traded values that can be 5 trillions of dollars per day (www.fxcm.com). In another words there is no one can corner the market. Even banks do not have enough pull to control the market for a long period of time. Thus it is a great place for a little guy to make a move.
In FX there is no central marketplace for currency exchange. Trades are conducted over counter (termed OTC), and the market is opened 24hrs daily, 5 days a week’s except holiday.
Compare to stock market, the latter have a smaller market with ten of thousand of stocks to choose from. In FX it revolves around more or less eight major currencies. Even the market is huge, it is much easier to get a clearer picture of what is happening.
GCF FOREX TRADING PLATFORM
There are several of Forex trading platform in the market. However GCF mainly focus on FxPro Meta Trader 5. Reason it had being named the “best” twice in a row at 2015 and 2016. Continuing its predecessor’s impressive legacy. MT5 is powerful and easy to use for online trading platform. This platform allow user to analyse markets and place orders at the same time it manage user exposure with ease
HOW DOES THIS WORKS?
Currencies are being purchased and sold according to the current price. That price is being determined by supply and demand. This reflection of many factors such as, current interest rates, economic performance, sentiment towards ongoing political situation and lastly perception of the future performance of the currency against another. This is also known as “spot market”. In another words spot market is where currencies are bought and sold according to the current rice. That price is then determined by supply and demand. It reflection of many things such as current interest rates, economic performance, sentiment towards ongoing political situations as well as perception of the future performance of one currency against another.
2 TYPES OF CONTRACTS
These 2 types of contracts are blind and are typically settled for cash for the exchange in question upon expiry, although contracts can also be bought and sold before they expire. These contracts can offer protection against risk when trading currencies. Usual bigger International Corporation use these market in order to hedge against future exchange rate fluctuations.