Keep reading for FREE
Speculation in the Forex Market
The main functions of the forex market are:
- To transfer funds from 1 currency of a country to another currency.
- To provide short-term credit to finance trade between countries.
- To avoid or “hedge” against foreign exchange rate fluctuations from when a transaction is initiated & when payment is received.
- To speculate.
Most currency trading is based on speculation. Most of the trading volume comes from traders that buy & sell based on the short-term price movements of currency pairs.
The forex market is relatively very liquid but the market depth could change based on the currency pair & time of day.
15
73 reads
MORE IDEAS ON THIS
Forex Market Size And Liquidity
The bulk of forex trading takes place on what’s called the “interbank market“. The forex market has neither a physical location nor a central exchange.
The forex market is considered an over-the-counter
15
81 reads
Currency Futures
A currency future is a contract that details the price at which a currency could be bought or sold and sets a specific date for the exchange.
Currency futures were created by the Chicago Mercantile Exchange (CME) way back in 1972
Since futures contracts are standardized and traded on ...
15
61 reads
What is Forex?
Forex is the global financial market that allows one to trade currencies.
An exchange rate is the relative price of two currencies from two different countries.
It’s these changes in the exchange rates that allow you to make money in ...
16
168 reads
Retail Forex
There is a secondary OTC market that provides a way for retail traders to participate in the forex market.
Forex trading providers trade in the primary OTC market on your behalf. They find the best available prices and then add a “markup” before displaying the prices on their trading platfo...
15
62 reads
Major Currency Pairs
There are only 7 major currency pairs.
Compared to the minors and exotics, the price moves more frequently with the majors, which provides more trading opportunities.
- EUR/USD
- USD/JPY
- GBP/USD
- USD...
16
100 reads
How To Trade Forex
Among the financial instruments, the most popular ones are:
- retail forex
- spot FX
- currency futures
- currency options
- currency exchange-traded funds (or ETFs)
15
71 reads
What Is Traded In Forex?
The simple answer is MONEY. Specifically, currencies.
The price of the currency is usually a direct reflection of the market’s opinion on the current and future health of its respective economy.
In general, the exchange rate of a currency versus other currencies is
15
128 reads
Currency Pairs
Forex trading is the simultaneous buying of 1 currency and selling of another.
When you trade in the forex market, you buy or sell in currency pairs through a “forex broker” or “CFD provider”.
An exchange rate is the relative price of 2 currencies from 2 different cou...
15
112 reads
Exotic Currency Pairs
Exotic currency pairs are made up of one major currency paired with the currency of an emerging economy, such as Brazil, Mexico, Chile, Turkey, or Hungary and many others.
Basically, an exotic currency pair includes one major currency alongside an exotic currency.
Du...
15
80 reads
Currency Options
An “option” is a financial instrument that gives the buyer the right or the option, but not the obligation, to buy or sell an asset at a specified price on the option’s expiration date.
If a trader “sold” an option, then he or she would be obliged to buy or sell an asset at...
15
67 reads
Major Cross-Currency Pairs or Minor Currency Pairs
While not as frequently traded as the majors, the crosses or minors are still pretty liquid and still provide plenty of trading opportunities.
The most actively traded crosses/minors are derived from the three major non-USD currencies: EUR, JPY, and GBP.
- ...
15
93 reads
Forex CFD
A CFD is a contract, typically between a CFD provider & a trader, where 1 party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.
Trading forex CFDs gives you the opportunity to trade a currency pair in both...
15
69 reads
Spot FX
The spot FX market is an “off-exchange” market/an over-the-counter (“OTC”) market that operates 24 hours a day.
A spot FX transaction is a bilateral (“between two parties”) agreement to physically exchange one currency against another currency.
The ag...
15
63 reads
CURATED FROM
CURATED BY
I want to make summary of what I have learned about Forex so that I can refresh it again.
“
More like this
so what will happen with black holes as the universe ages and dies around them?
So what will happen with black holes as the universe ages and dies around them?
- Again, we don't know but we have some ideas based on our current understanding of physics: Hawking radiation.
- In quantum field theory the vacu...
Impact of PPP
The World Bank releases a report that compares the productivity and growth of various countries in terms of PPP and U.S. dollars.
The International Monetary Fund and the Organization for Economic Cooperation and Development use weights based on PPP metrics to make predictions and recommend...
Poloniex
This is a popular altcoin exchange which offers leveraged trading and has a peer-to-peer market for users who want to provide liquidity to margin traders and earn daily interest as a result. You can set your own interest rate and loan duration, and because these are short term loans with daily in...
Explore the World’s
Best Ideas
200,000+ ideas on pretty much any topic. Created by the smartest people around & well-organized so you can explore at will.
An Idea for Everything
Explore the biggest library of insights. And we've infused it with powerful filtering tools so you can easily find what you need.
Knowledge Library
Powerful Saving & Organizational Tools
Save ideas for later reading, for personalized stashes, or for remembering it later.
Start
31 ideas
Start
44 ideas
# Personal Growth
Take Your Ideas
Anywhere
Organize your ideas & listen on the go. And with Pro, there are no limits.
Listen on the go
Just press play and we take care of the words.
Never worry about spotty connections
No Internet access? No problem. Within the mobile app, all your ideas are available, even when offline.
Get Organized with Stashes
Ideas for your next work project? Quotes that inspire you? Put them in the right place so you never lose them.
Start
47 ideas
Start
75 ideas
My Stashes
Join
2 Million Stashers
4.8
5,740 Reviews
App Store
4.7
72,690 Reviews
Google Play
Sean Green
Great interesting short snippets of informative articles. Highly recommended to anyone who loves information and lacks patience.
“
Ashley Anthony
This app is LOADED with RELEVANT, HELPFUL, AND EDUCATIONAL material. It is creatively intellectual, yet minimal enough to not overstimulate and create a learning block. I am exceptionally impressed with this app!
“
Shankul Varada
Best app ever! You heard it right. This app has helped me get back on my quest to get things done while equipping myself with knowledge everyday.
“
samz905
Don’t look further if you love learning new things. A refreshing concept that provides quick ideas for busy thought leaders.
“
Jamyson Haug
Great for quick bits of information and interesting ideas around whatever topics you are interested in. Visually, it looks great as well.
“
Ghazala Begum
Even five minutes a day will improve your thinking. I've come across new ideas and learnt to improve existing ways to become more motivated, confident and happier.
“
Giovanna Scalzone
Brilliant. It feels fresh and encouraging. So many interesting pieces of information that are just enough to absorb and apply. So happy I found this.
“
Laetitia Berton
I have only been using it for a few days now, but I have found answers to questions I had never consciously formulated, or to problems I face everyday at work or at home. I wish I had found this earlier, highly recommended!
“
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving & library
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Personalized recommendations
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates