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Forex Trading Market And Fluctuation In Currencies

Forex currency market is one of the most flourishing trading markets in the world. The trading in Forex exchange is performed among the speculators, large organization, financial banks, government, multinational companies and many others. According to the survey, each day three trillion dollar trading is done in the Forex market. In this way, the statistics have made it the biggest trading market even from the entire American stock markets. The forex trading is conducted all across the world and the individual traders and companies take part in it everyday for the purpose of gaining immense profit.

As forex trading market is vulnerable to the shift on the basis of any change in the political, economical and macroeconomic factors, the time of trading is also open for the entire day so that the shift can become an opportunity for the trader. The forex trading market opens in the evening of Sunday and closes on the night of Friday.

Fluctuation in the Currency In Relation To another Currency

Forex trading is based on the exchange of the currencies. It is based on the pair of currencies rather than a single currency. The widely traded currency pairs in Forex trading are US dollar/ British pounds, US dollars/ euro, US dollar/ Japanese yen along with many other currencies of the world. The ratio used by the investors in forex trading is 100:1. It means an investment of $1000 is sufficient to work on the trading position of $100,000. The traders must have to keep the trading account high with sufficient money so that the chances of negative position can be avoided.

Fluctuations in the Price of the Currencies

The governments of the countries have the major role in fluctuation of the value of the currencies in order to give high opportunities to the traders taking part in currency trading markets. However, the value of the Chinese Yuan is difficult to shift due to the controlling authority of the Chinese government. They hardly make any effort to make any shift in the value that leads to lot of criticism and negative remarks for the Chinese government. According to the traders, China wants to be the next superpower and is falsely controlling the price of the products. For the forex trading market to flourish, it is important for the government of the countries not to control the value of currency.