We had already discussed the FX market. This is very important to know about the market size and liquidity (cash flow) before investing in the market. The liquidity volume movement per day is considered to be $5-6 Trillion. You must know FX Market has no physical location and the fact that the entire market is run electronically with the network of banks. So, yes, this market works globally and the traders can trade 24/5 with their Internet connection from anywhere in the world.
In the Forex Market, traders trade with the most 7 major currency pairs which are quoted with the US Dollar because US Dollar is the most trading currency (84.9%). The second most tradable pair is the EURO currency pair at 39.1% and the third most tradable currency pair is YEN at 19%.
There are also other significant reasons why the U.S. dollar plays a vital role in the forex market:
• The United States economy is the LARGEST in the world.
• The United States has the largest and most liquid financial market in the world.
• The United States has a stable political system.
• The U.S. dollar is the reserve currency of the world.
• The U.S. dollar is the medium of exchange for many cross-border transactions.
We can simply say that whenever we mentioned or talk about FX Market, US Dollar is the most common talk around FX Market.
Types OF Orders Part 1.
December 2, 2023
