A Brief Introduction to Forex Trading
An investment professional with nearly two decades of experience, Colin Devereux has served as a chief dealer with both BNP Paribas and Bank of America Merrill Lynch. Throughout his career, Colin Devereux has focused on foreign exchange trading.
Commonly referred to as forex or FX, the foreign exchange is a global market, where institutions and individual investors buy and sell international currencies. As the world’s largest exchange market, forex sees daily trades totaling around $5 trillion, which far exceeds the daily trade numbers of all of the world’s stock markets combined.
The goal of forex traders is to make a profit by anticipating the increase in the value of one currency against another based on macroeconomic themes. Because of this, all forex trades are made in pairs. The most commonly traded pair on the market is the U.S. dollar and the Euro, which are the top two most-traded currencies in the world. Other top currencies in the forex market include the Japanese yen, the British pound, and the Australian dollar.