But where is the opportunity to make money after all?
Currencies are not traded in fixed prices -instead they are part of a free floating
trading system. Every order for buying / selling a Forex currency is a factor creating
either demand or supply in the market. Even tiny fluctuations in this free-floating
system can be transformed into huge profits using the ability of trading leverage (as
it will be described afterwards in Chapter-3).
Where is the Forex Market Situated?
All currency transactions take place within the Forex Market. Where is Forex
situated? Actually nowhere specifically, Forex operates as a non-centralized network
such is the World Wide Web. All transactions are executed within the Electronic
Network of Banks (called the ECN network). There are of course several physical
Financial Centers around the world. These financial centers are found in major
capital cities such is New York, London, Tokyo, Sydney etc.
Today Foreign Exchange is by far the largest market in the world. Forex has become
so huge that volumes exceed today 5 trillion USD only in a single day.
Forex Market Trading Hours
The Foreign Exchange market is open 24/5 between Mondays to Fridays. The Forex
daily activity is divided into 4 separate sessions:
(1)
(2)
(3)
(4)
New York Session, 8:00 am to 5:00 pm EST
Tokyo Session, 7:00 pm to 4:00 am EST
Sydney Session, 5:00 pm to 2:00 am EST
London Session, 3:00 am to 12:00 noon EST
Fore