Global Forex Trading
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http://www.theforexnittygritty.com/forex/global-forex-trading Global Forex Trading It is possible to engage in global Forex trading as the three major currency markets are London, New York, and Tokyo. Trading during business hours at these three exchanges gives nearly twenty-four hour a day access to foreign currency trading. In all of the major markets one can trade all currencies. However, it is commonly not possible to trade many of the minor Forex currencies against each other. Many of not most of the minor Forex currencies are traded one against the US dollar and then the US dollar is traded against the second currency. In trading Forex markets a trader chooses New York, Tokyo, or London based on his working hours and to a degree on the currencies that he trades. For example, news that is germane to the Yen and AUD will commonly break during trading hours in Tokyo while news that affects the Euro, Swiss franc, or Pound will break during London hours. North American news affecting the CAD and USD will break during New York hours. Volatility Leads to Profits Currency speculators look for volatile markets in global Forex trading. Profits occur when a trader correctly anticipates prices changes in any given currency pair. Global Forex trading allows traders to buy and sell currencies that are actively trading and whose prices are fluctuating. Traders engage in technical analysis of minor Forex currencies and technical analysis of major Forex currencies as a means of predicting when to make a profitable trade. Because major pairs trade in higher volume and with greater liquidity than minor pairs, technical trading is typically more accurate with these currencies. On the other hand a trader who is more knowledgeable about the fundamentals of a minor currency may benefit from his expertise niche while the general run of traders will be caught unawares by changes in a given minor currency. Options in Global Currency Trading Often traders can profit by trading currency options. Options are a way to leverage trading capital and a way to hedge risk.
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