Forex Robots trading is the exchange of currencies. It is an OTC market that does not have a central exchange, and is run by a global network banks and financial institutions.
It is one of the world’s largest markets, with a daily turnover of $257 billion*.
In contrast to other markets, for instance the stock market, which is an centralized market that controls trade and is accountable to regulations, the forex market is decentralized. Forex trading is more secure to manipulation than other financial markets due to the fact that there is no central exchange.
There are three main categories of players in the forex market: institutional traders, non-reporting banks as well as other financial institutions, as well as individual investors.
The majority of global FX market trading is conducted by institutional clients. They include multinational companies and government agencies that use the forex market to reduce their risk of foreign exchange.
They also include retail investors who are investing for personal or business purposes. They can also trade currencies using leverage. This means they can borrow money from a broker and then sell the assets, increasing their profit potential.
Other investors who trade on the forex market are speculators who trade currencies in order to profit from price fluctuations in the future. They can be either long or short based on whether they believe a currency’s value will rise or fall.
The market is highly liquid. level of liquidity, which means there is often more than enough demand to satisfy the demand of sellers and buyers. This liquidity allows for speedy trading and exits.
It is also highly regulated and traders are able to access a wide range of information. This includes news, economic data and trading trends.
Forex traders also have access to different charting tools to help analyze and interpret the market. Candlestick charts are a common method of identifying market direction and movements.
These charts are designed to show the relationship between price and time. They are a great instrument for scalpers who trades in an impulsive way or for those who are long-term investors who use the chart to monitor a currency’s trend over time.
The term “pairs” is used to indicate currencies that are traded on the forex market. They represent one currency against another. Each pair is assigned a code of three letters, similar to the ticker symbol used on the stock exchange. The American dollar is represented by USD while the Euro is represented as EUR and the Japanese yen as JPY.
GBP/USD is the most well-known currency pair on the forex market. EUR/USD is the second. The former represents the British pounds, while the latter is the Euro.
Traders can decide to BUY or SELL a pair of currencies, and there are two types of transactions that are available: spot and futures. Spot trading is a physical transaction in which the two currencies are exchanged at the current market rate.
Similarly, futures trading involves an agreement to buy or sell a specific amount of currency in the future, according to current market prices. These types of contracts are most popular among financial firms and companies that need to hedge the risk of foreign exchange until a certain date in the future.