Forex The Basics
The Forex market is the largest financial market in the world doing trillions of dollars worth of business a day. The Forex market is what decides the spot rates of currency during exchange hours. Exchange hours run 24/7, taking one 24 hour break a week.
Currency trading always takes place in the form of pairs.
The exchange rate can dramatically change within minutes and can be very volatile. The prices of currency are determined by financial institutions and currency traders from around the world. The price is forecasted with the use of technical and fundamental analysis.
Fundamental analysis is determined by news and economic data releases which can be found on economic calendars. The top five most volatile economic data releases are:
1. Central Bank Rate Decision
3. CPI (Inflation Data)
4. Unemployment Rate
5. FOMC Meeting
Technical analysis is determined by finding patterns in the underlying data. This data is often put on to charts with the use of technical indicators to help determine patterns. The most common used technical indicators are: