Forex trading is nothing more
than direct access trading of different types of foreign currencies. In the
past, foreign exchange trading was mostly limited to large banks and
institutional traders. However recent technological advancements have made it so
that small traders can also take advantage of the many benefits of forex trading
just by using the various online trading platforms to trade.
The currencies of the world are on a floating exchange rate, and they are
always traded in pairs. About 85 percent of all daily transactions involve
trading of the major currencies. Four major currency pairs are usually used for
investment purposes. They are: Euro against US dollar (EUR/USD), US dollar
against Japanese yen (USD/JPY), British pound against US dollar (GBP/USD) and US
dollar against Swiss franc (USD/CHF).
