The foreign exchange transaction involves the purchase of the currency of a country and the simultaneous sale of the currency of another country. Currencies are traded in pairs, ie if the investor decides to buy a cross, as is buying GBPUSD pounds (long or long) and simultaneously selling dollars. Conversely, if we assume a short position (short or short) in the same junction will be selling pounds and buying dollars.
Currently the forex market is the largest financial market and liquidity, most transactions are conducted between the U.S. dollar (USD), euro (EUR), Yen (JPY), Pound (GBP) Swiss franc (CHF) and Australian dollars (AUD) and Canadian (CAD). It is also possible to operate cross of gold (XAU) and silver (XAG) against the major currencies.
The forex market is developed through an electronic network that connects individuals, corporations and banks, without having a physical location or a bag to centralize all operations. Unlike the stock market, the Forex market operates for 24 hours. Any individual or institutional investor can access this market at a reduced cost and with significant leverage across different operating platforms online.
The online trading platforms available in the forex market quotations show every moment of the different crosses, while providing different types of charts and indicators to improve investment decisions. Much of Forex investors do for speculative purposes, taking advantage of the inherent volatility of this market.
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