Forex trading, or trading on the foreign exchange market, is a worldwide financial marketplace. Forex is decentralized and allows for the trading of foreign currencies. Various financial centers located throughout the world serve as ‘anchors’ at which buyers and sellers can make financial transactions involving foreign currencies 24 hours a day (except the weekends). It is this marketplace that helps to determine the value of foreign currencies the world over.
In theory, the foreign exchange market trades almost all foreign currencies; however, the supply of such currencies is driven by the demand for them, making several currencies more likely to be traded. When considering what currencies are available for Forex Trading, it is important to remember this defining characteristic. That being said, the top 15 currencies traded are:
- The United States dollar
- The Euro
- The Japanese yen
- British Pound Sterling
- The Australian dollar
- The Swiss franc
- The Canadian dollar
- The Hong Kong dollar
- The Swedish krona
10. The New Zealand dollar
11. The South Korean won
12. The Singapore dollar
13. The Norwegian krone
14. The Mexican peso
15. The Indian rupee
The purpose behind Forex trading is assisting international investment and trade by simplifying the process of converting currencies. For example, an American company can import goods from Great Britain by paying Pound Sterling.
Businesses and investors who understand which currencies trade on the foreign exchange market can make intelligent trading decisions. It is equally important to work with a reputable company to make sure that you have the tools and support you need for successful trading in the Forex market.
