Forex Trading

Forex is considered to be the leading marketplace globally with transactions of more than 1.8 trillion dollars taking place everyday. Forex trading is a wide market place for selling and buying currencies and is also known as over-the-counter trading market. Global money managers, international money brokers, registered dealers, huge multinational corporations, private speculators and traders are the participants who are mostly involved in Forex markets.

The process of Forex trading involves certain steps that include:

• A customer specification to the dealer about the deal size and currency pair
• The dealer basically gives a two-way price, one is the Ask for price and the other is by bidding
• The customer may ask for re-quote
• The dealer then confirms the trade.

Stop orders are also placed in order to buy and sell at a specified amount or price containing same two variables, duration and price. This order is basically used for a limit loss potential on a transaction.