Forex is the epitome of foreign exchange of curries. The process warrants the need to exchange one form of currency into another for several reasons. It can be for commerce, trade or tourism but the process remains the same. The forex exchange market is the place where all currencies are traded. The most unique aspect of the foreign exchange market is the fact that is not a central marketplace in physical terms. The trading of currencies happens electronically and the process is called OTC that stands for over the counter. This means that all the transactions are happening through a set of computer networks between the trader and the rest of the world. There is not one specific centralized exchange. The market remains open twenty-four hours of the day for five and a half days of a week.

Spot markets and forwards and futures markets

There are three basic ways through which individuals, institutions and corporations do trade in the forex market. These three ways are:

  1. spot markets
  2. forward market
  3. future market

The spot market is the largest market for forex trading due to the underlying assets that also forms the core to forward and futures market. Future markets were at one time a popular place for forex traders because they could be available for a long period to individual traders. But after the evolution of electronic trading and the availability of numerous forex brokers the spot market became the hub. Future and forward market are more used by those companies that hedge their foreign exchange risks to a specific date in the near or far future.

New at forex trading – learn the basics from experts

If you are a rookie forex trader, it will harder identify the important forex signals, how to act when they appear. To get you started and eventually becomes good at forex trading, websites like bus forex can be helpful. They are a Thai based web platform and one of the better-automated forex trading systems you can opt for. Make sure to check out their websites to find more ways they might assist you in the basic forex[forex เบื้องต้น,which is the term in Thai] trade.

By Genaro Martin

Linda Martin: Linda, a renowned management consultant, offers strategies for leadership, team building, and performance management in her blog.