What is Forex?
Forex, also known as foreign exchange, FX or currency trading, is a decentralized global market where all the world’s currencies trade. Forex is one of the largest financial markets in the world and still continues to grow annually.
The forex market is run by a global network of banks, spread across four major forex trading centres in different time zones which is London, New York, Sydney， and Tokyo. As there is no central location, we are able to trade forex 24 hours a day. How do we regulate a market that is trading 24 hours a day, all over the world where there is no centralized body governing the currency trading market; instead, several governmental and independent bodies supervise forex trading around the world. Some of these include, but are not limited to:
The global supervisory bodies regulate forex by setting standards that all brokers under their jurisdiction must comply with. These standards include being registered and licensed with the regulatory body, undergoing regular audits, communicating certain changes of service to their clients, and more. This helps ensure that currency trading is ethical and fair for all involved.
How FX Trading works?
There are a variety of different ways that we can trade forex but they all work the same way, which involves one currency exchange for another and its in currency pairs.
World’s Major Currencies: