The foreign exchange market has grown magnificently in the past few years. Where traditionally it was turning over around $3.2 trillion per day, today it is estimated to have an average daily turnover of $4 trillion, amounting to an approximate growth of 22% since 2007’s daily volumes.

FX trading is performed by millions of people from across the globe daily. This incredibly popular market is operated by a number of trading centers from around the world, based in New York, London, Tokyo, Hong Kong, Singapore and Sydney.

Why is Forex Trading so Unique?

Forex trading is unique because:

• It has huge trading volumes
• Its geographically dispersed
• It operates on a continuous, 24-hour basis

What are the most Traded Currencies?

Around 80% of all trading transactions are made on the seven major currencies.

The most traded currencies market is the U.S. dollar, which is traded by 84.9% of traders. Following the U.S. dollar is the euro, which is traded by 39.1% of online traders. After this comes the Japanese Yen and the British pound which are traded by 19% and 12.9% of traders respectively. Finally, comes the Australian dollar and Swiss Franc, traded by 7.6% and 6.4% of the market.

Other currencies have entered the trading platform in recent years, including more diverse and exotic currencies such as the Mexican Peso, the Singapore dollar and the Indian Rupee. The give investors the opportunity to truly diversify their trading portfolios and

 What are the Benefits of the Foreign Exchange Market?

The foreign exchange market presents endless benefits to investors of all levels, including:

• Ability to trade at any time and from any place
• Allows for leverage trading
• Possesses superior liquidity
• Low minimum investment
• Low transaction costs
• Specialised trading

Basic Forex Trading Explained

The basic idea behind successful forex trading is to buy cheap and sell high (and vice versa). The first step in successfully achieving this is to analyse the markets using technical analysis. Some investors also perform fundamental analysis, which takes a macro-analytical market approach by following forex news .

By performing market analysis you can establish which pairs are likely to rise, fall, trade in a range or trade erratically. You can then seek low-risk trading opportunities in the short-term charts, with the intent of making a profit from that trade.

To become a successful online trader you need to educate yourself about the foreign exchange market. Find a prestigious, regulated forex broker and download the demo trading account to practice, practice, practice.

Develop an effective trading strategy and stick to it through thick and thin. Together with a trading plan you will become an established and successful trader with the passing of time.