The Forex Market Is Open 24 Hours a Day

Since forex trading is open 24 hours a day, there is always a financial marketplace open for business somewhere in the world at almost any time during the day. Forex is one of the most popular forms of trading in financial markets, mainly because it is a 24-hour market and can be traded 6 days a week.

Within currency pairs, the first currency is called the base currency and the second currency is shown as the quote, floating currency or quotation currency. Each price quote displays an amount that indicates how much in value is received from the offer (the second currency) for one unit of the base currency (first currency). The price tracks the base currency. When the price increases, the base currency increases while the variable decreases and vice versa. For example, the quotation EUR/USD 1.24748 means that 1 euro is exchanged for 1.24748 US dollars in the exchange rate.

Trading in foreign exchange and currencies, or Forex trading and Forex trading, is the simultaneous purchase of one currency and sale of another. Forex is the abbreviation of the English phrase “Foreign Exchange” and refers to the simultaneous purchase of one currency with the sale of another.

In Forex trading, currencies are specified in pairs such as the Euro / US Dollar (EUR/USD) currency pair and traders speculate on changes in the prices between the two currencies. When one currency in the pair increases its value, it strengthens compared to the other.

In addition to spread and transaction costs, foreign exchange positions that are rolled over to the next trading day may incur financing costs. When foreign exchange is “rolled over” to the next day, the broker charges a specific funding rate, the swap rate. The account is debited or credited depending on the market situation of the positions. Financing charges or credits may also occur for unrealized gains or losses on foreign exchange that are rolled over. This is effectively interest charged by the broker for making the capital available to the customer (via leverage) overnight. There are no other fees or commissions, as with stock trading. Before opening an account, be sure to compare the spread information of the various brokers.