The crossroad for international capital lies on the currency trade market through which commercial and investment flows on a global scale. As the most traded financial market in the world, the forex market is also the biggest trading at volumes exceeding 2 trillion dollars per day. Financial centers in major cities of the world occupying different time zones have been established so that the market is made open 24 hours a day for 6 days a week. Business starts every Monday morning in the Asia-Pacific time zone and ends on the closing business hours in New York.

Just like in the stock market, foreign exchange trading capitalizes on movements of market values. Currencies are traded in the latter while stocks are traded in the former. A great advantage of trading currencies is the possibility of focusing narrowly on traded items since the market revolves only around eight active major currencies. This characteristic is in contrast to the stock market where tens of thousands of stocks can be chosen from. With a significantly smaller number of currencies to trade, the currency trade market is easier to monitor even though its trading values can be really huge.

In buying stocks in the stock market, the items are bought using the currency of the trader. In the forex market, on the other hand, currencies are being bought using another type of currency. This characteristic is the main reason why currencies come in pairs in the currency trade market. This pairing scheme simplifies trading. For instance, a euro-dollar pair involves the currencies in the Eurozone and the United States. The first currency appearing on the pair is referred to as the base currency, while the next currency is referred to as the counter currency. The base currency is practically the one being bought or sold in the pair. Base currencies are traditionally assigned to the stronger currency.

Investors coming from a wide financial funding spectrum have equalized access to the currency trade market. This accessibility feature is enhanced by the interconnectivity introduced by the Internet. For a trader to participate in a trading session, what he needs to do is simply download the client software and complete the registration process. With some basic knowledge on how currency trading works, anyone can begin trading in no time. To improve the chances of realizing profit from a trading session, various trading styles have thus been developed by traders.

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