Forex trading is also known as foreign exchange trading, refers to the network of buyers and sellers who agree on specific prices to exchange currencies. It is a decentralized global platform through which individuals, firms, and banks exchange currencies. People who travel abroad usually make such transactions or forex trade. The major purpose of making a forex trade is profit earning. This makes the flow of money extremely volatile on the everyday currency exchange rate.
Types of Forex Markets to Help You Choose Wisely
The exchange takes place directly between two parties. The market is called the on-the-counter (OTC) market. Four major trading centers operate the forex market with different time zones; that is why you can benefit from the market 24 hours a day. The four major centers are London, Tokyo, Sydney, and New York. The three types of forex markets are:
Spot Forex Market
The physical exchange of currencies that takes place on the spot or within a short period is known as the spot forex market.
Forward Forex Market
The buyer and seller agree to exchange currencies at a specified period. The range of future dates can vary depending on the agreement between both parties.
Future Forex Market
The buyer and sellers agree on currency exchange at a specific rate and time. It is a legal binding, unlike the forwarding forex market.
What Is Copy Trading
Copy trading is a service that allows new traders to copy the trading strategies of experienced traders from the forex market. It is ideal for those who want to invest but lack of experience prevents them from trading.
Exness social trading allows beginners to trade effectively while the firm monitors the traders. It is effective and efficient software that is beneficial for safe trading and reliable information.