Introduction to Forex Trading

Nowadays Forex trading is one of the most popular activities. The popularity of the market has increased due to many factors, such as decentralization of the marketplace, the high liquidity, opportunity to deal with high volume trades and thus make high profits.

Introduction to Forex Trading: Popularity

Contemporary foreign exchange market was formed in 1970s when countries gradually switched to floating exchange rates. Forex trading involves many participants, ranging from large banks to individuals. The instruments in the Forex market are composed of two parts: base and quote currencies (assets). Forex trading is a process of buying one currency by simultaneously selling another one. The base currency is expressed in units of the quote one.

Introduction to Forex Trading: Characteristics

Forex trading market differs from other financial markets because of its unique features:

Trading in Forex market takes place 24 hours a day except for weekends.
Forex market is available in different parts of the world as it is traded through online technologies.
Tremendous trade volume in the market creates high liquidity.

Surely there are also other features that make it so attractive and popular among imdividuals and corporations. Currency the number of traded instruments is so large, that the trader can trade just everything online. This makes online trading more attractive.

Introduction to Forex Trading: Forex Market Players

Forex market players are commercial banks, brokers, central banks and individuals. The main task of central banks in foreign exchange market is the regulation of their country's currency rates. Central banks via direct and indirect influence to the currency rates aim to exclude economic crisis. Thus, central banks enter Forex market to correct or keep stable national currency rate.

Commercial banks trade in Forex market in their own interest and at their own expenses. They can also trade in interest of their customers. Brokers are playing the role of the intermediary between the market participants and they are the ones who provide the necessary environment for trading. At last, individuals are those who trade for speculative purposes. Nowadays, there is no limitation for participating in the market; anyone can enter the market and start trading activities.

IFC Markets is a leading innovative financial company, offering private and corporate investors wide set of trading and analytical tools. The company provides its clients with Forex and CFD trading through its own-generated trading platform NetTradeX, which is available on PC, iOS, Android and Windows Mobile. The company also offers MetaTrader 4 platform available on PC, Mac OS, iOS and Android. You may compare the advantages of both platforms.