The foreign exchange market (Forex, FX, or currency market) is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.
The two currencies being traded are called a currency pair and each currency pair has its own particular exchange rate, which changes throughout the day. This means the investor is speculating on the currency exchange rate to fluctuate either up or down, and aims to profit from these movements. For example, in a transaction Swiss Francs (CHF) may be purchased while US dollars (USD) are sold; or Great British pounds (GBP) may be purchased while Japanese Yen (YEN) are sold. When investors trade Forex they are actually engaging in a transaction of two currencies in which one is bought (long) and the other is sold (short).
Colmex Pro provides its investors access to the world’s most trusted markets, including NASDAQ and the New York Stock Exchange. We are committed to providing reliable, low-cost trading to all our clients. Colmex Pro has long-standing relationships with many of the top global banks.
Individual retail traders constitute a growing segment of this market with the advent of retail forex platforms, both in size and importance. Currently, they participate indirectly through brokers or banks.
There are two main types of retail FX brokers offering the opportunity for currency trading: brokers and dealers or market makers. Brokers serve as an agent of the customer in the broader FX market, by seeking the best price in the market for a retail order and dealing on behalf of the retail customer. They charge a commission or a mark-up in addition to the price obtained in the market. Dealers or market makers, by contrast, typically act as principal in the transaction versus the retail customer, and quote a price they are willing to deal at. So, no matter where you are, you can start trading in as little as five minutes, by setting up a demo account. Of course, there are many other account options available, as well. Talk with us today to decide which type of account is best for you and your investment style.
In margin trading, investors leverage money from a broker to trade assets that are worth more than the capital they have in their account to cover some or all of the credit risk. There is an element of risk involved in margin trading; since traders are holding positions that exceed the actual value of their account, substantial losses can be incurred should the move against the trader's position. When taking part in margin trading Colmex Pro recommends close monitoring of margin utilization (the collateral being used to hold a margined position). Positions must be closed, reduced or enhanced with additional funds in the case that margin utilization drops below the minimum margin requirement.
You can trade from anywhere in the world, take your laptop or PC and you can open and close your positions. Simply, you can run the multimillion-dollar business from your computer wherever you are in the world. The FX market works continuously 24 hours a day, 5 days a week. With the ability to trade during the American, Asian and European session, forex traders have the advantage to develop their own trading plan.
Forex market has daily turnover of nearly $ 5.3 trillion, making it the most liquid market in the world. This liquidity provides traders with complete freedom to open and close short and long positions regardless of their size.
Trading in financial instruments involves risks and you may lose your entire investment