Search Our Site:  

FAQ

Contents

What is FOREX?

FOREX or FX is the abbreviation for Foreign exchange. It is the simultaneous buying of one currency and selling the other.

Example: In a forex transaction involving USD/EURO, it is the simultaneous purchase of US dollars and selling of EUROs at the prevailing/ pre- determined exchange rate.

What is the role of the forex market?

The primary role of the foreign exchange market is to facilitate currency conversion. In addition, the foreign exchange market

  • Effectively transfers purchasing power from one currency to another
  • Assists in International trade and commerce, by providing liquidity
  • Supports countries around the world accumulate forex reserves
  • Facilitates in hedging activities

What is the size of the forex markets?

According to the Triennial Central Bank Survey Report published by BIS on global foreign exchange market activity in 2010, the average daily turnover in global foreign exchange markets was US$4 trillion in April 2010. Of this, $1.5 trillion was contributed by spot forex and the remaining $2.5 trillion by other foreign exchange instruments.

What are the factors behind the growth of the forex markets?

Foreign exchange is the simultaneous purchase of one currency and selling the other currency. The forex markets are highly active mainly because different countries have different national currencies. If all the nations of the world had a single currency, there would not be a need for the Foreign exchange markets to exist.

According to the Triennial Central Bank Survey, Forex activity has grown continuously over the last two decades, following the introduction of the euro in 1999. Reported Forex activity increased eightfold from $500 billion in April 1989 to $4.0 trillion in April 2010. Forex activity grew 20% between the last two surveys in April 2007 and April 2010.

The growth in the forex markets can be attributed to the following factors

  • a) Development in technology and telecommunications
  • b) Increased activity by corporates in hedging currency risk
  • c) Volatility in interest rates
  • d) Growth in International trade
  • e) Business going global
  • f) Supportive government policies towards forex trading
  • g) Larger participation by individual investors

What are the trading hours in the forex market?

FOREX trading is a continuous function due to the availability of different time zones. The markets open for the day with Asia- Pacific and close with the Americas. In other words, forex markets function 24 hours a day except over the weekends.

Generally, FOREX markets open for trading at 20:15 GMT on Sunday and close at 22:00 GMT on Friday.

What are the forex trading hours for the Asian session?

The Asian trading session begins at around 12 AM and ends at 9 AM GMT. *Session timings will differ during the daylight saving period

What are the forex trading hours for the European session?

The European trading session begins at around 7AM and ends around 4 PM GMT. *Session timings will differ during the daylight saving period

Get Signals By E-mail:
EUR/JPY
September 1, 2015
From:
09:00 GMT
To:
10:59 GMT
Hi:
135.35
Lo:
134.83
Trend:
Markets Hours
 
Auckland Closed
Sydney Closed
Tokyo Closed
Hong Kong Closed
Singapore Closed
Moscow Closed
Frankfurt Closed
Zurich Closed
London Closed
New York Open
Chicago Open
Vancouver Opening