trading in a Forex Arena

Forex: It stands for Foreign Exchange known as ‘FX’. In this trade, at the same time buying one and selling another. This is a largest financial liquid market function in 24 hours a day, neither a conventional logic nor a central trading place while trade via telephone, internet or through electronic mechanism.

The primary market for currencies is the connecting market where banks, insurance companies, government, public sector, large corporations and financial institutions mange the risks related with fluctuations in currency rates.
Therefore, this market is for new long term equity capital where the securities are sold for the first time. The majority trade is used on the basis of comparative speculation of one currency against each other as currencies trade in pairs, for instance Euro-US Dollar (EUR/USD), US Dollar/Japanese Yen (USD/JPY) or Pound Sterling/ US Dollar GBP/USD.

Currency Pair Terminology

EUR/USD = "Euro"
USD/JPY = "Dollar Yen"
GBP/USD = "Cable" or "Sterling"
USD/CHF = "Swissy"
USD/CAD = "Dollar Canada" (CAD referred to as the "Loonie")
AUD/USD = "Aussie Dollar"
NZD/USD = "Kiwi"
This is an over-the-counter or off- exchange market (trading such as stocks, bonds, commodities or derivatives directly between two parties) which is operate from decentralize market.

Who & where Trade:

Thus Average daily turnover in global foreign exchange markets is estimated at $3.98 trillion which mainly comes from two sources:
Overseas/Foreign trade (5%). It refers to exports of goods and services by a firm to a foreign-based buyer (importer).
Speculation (95%) obligation in business transactions involving significant risk but offering the chance of large gains.
The majority have main emphasis on the key, most liquid currency pairs, known as “The Prime”which are US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar, Australian Dollar, Swedish krone, and Hong Kong Dollar. Actually, most of the Forex trading happens in the prime currency pairs.
WebRep