Forex trade is the largest segment in commerce and also the largest single market that is still relatively unknown and remains unchartered territory for most traders. Gone are the times, when this sector used to be exclusive realm of financial institutions like banks and big time speculators. You will find almost all sorts of professionals and even housewives and retired individuals dabbling in forex markets. Irrespective of whether you are a savvy and a knowledgeable trader or a complete greenhorn in this sector, you can catch up on these FAQs with answers that will always keep you one step ahead.
How would you define foreign exchange trade or forex markets?
Foreign exchange trade deals with selling and purchasing of currencies. One currency is bought or sold in exchange of another currency. Therefore, currencies are always traded in pairs on the basis of international exchange rates that keep changing every day. There are many forex trading brokers that offer brokerage services for facilitating such transactions.
Does an exchange in real time exist like a stock market?
There is no NYSE, LSE or DAX in forex markets. Trade takes place on the basis of interbank offered rates or on OTC counters and is done over phone or through emails.
Who are the stakeholders in the forex markets?
Technological strides made in IT have made the forex segment accessible to the whole lot of stakeholders like speculators, small and big time investors, registered dealers and brokers, indices and commodity dealers, and individual traders.
Is there any particular time schedule for forex markets?
Forex markets are functional round the clock. A particular trading begins in Sydney in Australia moving on to Tokyo. London and New York soon catches up. Gradually, all the nodal centers spring to life. You need to pick up forex trading strategies before you can invest in this sector.
Which are the most traded currencies in the forex markets?
More than 80% of all transactions involve the currency pairs of the greenback, Euro, Japanese Yen, British Pound, Swiss Franc, the Canadian and the Australian Dollar.
Do you have to invest heavily to trade in forex?
You need to invest a minimum deposit of $300 to open a small account and around $2000 for opening a steady account. Some forex trading systems offer the facility of opening a demo account that allows you to check the efficiency and reliability of a particular trading platform. You don’t have to pay anything to open a demo account.
Does UFX Markets offer a suitable option to forex traders?
UFX markets have come up fast in a very short span of time and offers good leverage on your investment spread. It is reliable and offers various features. We at UFX offer you trading opportunities in more than 80 currency pairs. We are registered with NFA. We are one of the best forex trading platforms with many users from throughout the world trading on our platform.