Whenever a person executes trades through Forex, they do so by approaching and utilizing a specific Forex Market. Now these types of markets are somewhat different than the markets that are available with other types of trading. Traditional stocks and bonds for example, are traded in markets that are related to the stock exchange you are working with. The London Stock Exchange, the Hong Kong Stock Exchange and the New York Stock Exchange are all distinctly different markets that you can trade in. Any type of trading has these types of markets but when you are specifically talking about Forex, the market is a little bit different.
Forex Market
The most interesting thing to note about the Forex Market is that it is different from almost any other kind of trading market in existence. What usually defines the different markets from each other is training is their distance away from each other; in other words there are clear geographical borders that are placed. This is not true with the Forex Market and for this reason it might be considered to be the first truly digitally enabled market. Forex Market units are grouped by the currencies that are used, not by the geographical location. For this reason it is possible for a person to trade any kind of market at any time during the work week and that more than anything else is perhaps what serves to make these markets popular.
Currency Pairs
As previously mentioned, each Forex market is defined by the currencies that are traded within that market. In Forex, a market is defined by two currencies specifically. An example of a Forex Market is the EUR/USD market, where the European and American currencies are traded. People make money by exchanging them back and forth in a way that ultimately ends up increasing their value. Other popularly traded markets are the GBP/EUR market, the GBP/USD market and the USD/CAD market.
Trading Currency Pairs
The terms trading a currency pair and trading a Forex Market are synonymous terms and both refer to the actual process of initiating a trade. You can initiate trades online through a number of different brokers. Each broker will have software that will show you the real time value of the first currency compared to the second (i.e. EUR/USD software trackers would show the value of the European Dollar over the American Dollar) in real time. The software allows you to initiate buy or sell trades at your leisure and depending on how the value changes, you might make or lose money on a specific trade. This is how you manipulate the Forex Market and ultimately how you get all of your trading done.
Conclusion
There are many different Forex Markets located around the world and if you are interested in trading Forex then you do not need to limit yourself to one specific Forex Market. One of the greatest advantages of Forex Trading is that it gives you the opportunity to trade with a large amount of flexibility. Trade the different markets to your heart's content and use every tool at your disposal to ensure that the trades are successful.
