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Earning Big in FOREX Trading
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There’s the stock market, the underground market and the foreign exchange market or more popularly known as FOREX, which can also be called as currency trading or foreign currency trading. The FOREX is one of the largest financial markets in the world. It has an estimate of $1.5 trillion turn-overs daily.
Operating 24 hours a day, the key players in the foreign currency trading are commercial banks, central banks, firms involved in foreign trade, investment funds, broker companies, retail investors and some private individuals. These players can come from Asia, North America and Europe. These key players are those with large amounts of money, involved in cash businesses or in the trading of assets that can be sold and bought easily.
Among the identified benefits of foreign currency trading is the speed and high liquidity of assets. Transactions are conducted in a matter of seconds. A trader can also open a position for any period of time he wants. There are no fees. And of course, there’s the promise of bigger profit.
The Process
Basically, FOREX trading involves trading of foreign currency and other similar products. The currency of one country is weighed against the currency of another. It is different from the stock market as it involves a transaction between two countries and the business takes place through a broker. Trading of foreign currencies take up almost 80% of the market activity. This ‘trading’ is purely speculative in nature; only 20% of the market activity is spent on actual exchange of currencies for the corporations and companies involved in the FOREX market.
Trading of currencies is done is pairs. You can buy Euros with Dollars, hoping that the Euro will increase its value. When the value of the Euro rises, you sell it, thus the profit. The commonly traded currencies are the US Dollar (USD), Japanese Yen (JPY), Euro (EUR), British Pound (GBP), Canadian Dollar (CAD), Australian Dollar (AUD), and the Swiss Franc (CHF). Among the usually traded currency pairs are the, the Euro and US Dollar (EUR/USD), US Dollar and the Japanese Yen (USD/JPY), the British Pound and US Dollar (GBP/USD), and the US Dollar and Swiss franc (USD/CHF).
In retrospect, there is no actual product being sold or bought in the FOREX market. The ‘trading’ is just composed of computer entries on the value of one currency against another.
In FOREX trading, the trader uses both fundamental and/or technical analysis. Small and medium players use technical analysis, of which the primary item for study is the price. Fundamental analysis involves a study of the situations in the country of the currency. This would include issues like political instability, rate of inflation and unemployment, tax policy and interest of the Central Bank.
FOREX vs. STOCK market
Currency trading has no central governing body. There are no clearing houses or panels that agree on trades of disputes. The FOREX market does not have any limits on the size of the position being sold or bought as long as the player has enough capital.
Online FOREX trading has opened a new window of opportunity for market players and business bigwigs. It has evolved to become more interactive, convenient, and easy to the players, not to mention, one of the highest earning markets in the business world. With online FOREX trading, one can play more and earn more.
Interbank Currency Trading News
THE RUPEE: dollar at nearly five-month high | Business Recorder
As a result of strong demand for dollars the US currency hit nearly five-month high at 91.30 in the interbank market on Monday, experts said.0 There were major payments due during the final quarter of the current fiscal year, this was the major factor behind the fall of the rupee, money experts said.
Read more...Rupee sinks below 55
The Nifty ended the day 0.3 per cent, or 14.60 points, higher at 4906.05 points.
Read more...Rupee further down to 55 level
The rupee on Monday plunged below the psychological 55-level to close at all-time low of 55.04 against the dollar amid robust demand for the US currency from banks and importers, but there was no visible RBI action to shore up the domestic unit from its record low levels.
Read more...EM ASIA FX-Mostly up on short-covering, Europe fears remain
SINGAPORE, May 21 (Reuters) - Most emerging Asian currenciesrose on Monday, helped by short-covering, although investorshesitated to add more bets on persistent worries about financialturmoil in Greece and Spain. Interbank speculators covered short positions in therecently battered emerging Asian currencies, tracking a reboundin the euro. The South Korean won was the biggest beneficiaryof the ...
Read more...Delhi - [ Min 27.2 °C
Paring all losses of the previous trading session, the rupee on Tuesday recovered by 17 paise to 54.86 against the US dollar on the Interbank Foreign Exchange market in early trade, following measures taken by RBI to curb the local currency's fall.
Read more...Rupee up 4 paise versus dollar
The Indian rupee recovered by four paise to 54.99 after touching all-time low of 55.07 against the American currency in the late morning trade due to mild selling of dollars by banks following following measures taken by RBI to curb the local currency's fall.
Read more...EM ASIA FX-Short-covering supports Asia FX, intervention talk lifts won
* S.Korea suspected of selling dlr above 1,170 -dealers * Leveraged names buy Singapore dlr * Interbank players, exporters buy Taiwan dlr (Adds details, updates prices) By Jongwoo Cheon SINGAPORE, May ...
Read more...THE RUPEE: parity stays put in interbank deals | Business Recorder
The rupee held the overnight levels against dollar in the interbank market on the currency market on Friday, while it drifted lower versus the greenback on the open market , dealers said.
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