Forex Market Overview

10 Questions

A decentralized market where world currencies are traded

$6 trillion

US dollar, euro, pound sterling, Japanese yen, and Swiss franc

In pairs

Open 24 hours a day, five days a week

By appreciation or depreciation of one currency against another

Take positions significantly in excess of the funds available to them

Supply and demand from different players such as central banks, economic data, political stability, and market sentiment

Inflation, disrupted supply chains, and tensions on energy markets

It will depreciate

Study Notes

Forex is a decentralized international market where all world currencies are traded.
It is the largest financial market in the world with a daily volume of around $6 trillion.
The main currencies traded on the forex market are the US dollar, euro, pound sterling, Japanese yen, and Swiss franc.
Currencies are always quoted in pairs, with each currency forming the pair designated by a three-letter code.
The forex market is open 24 hours a day, five days a week, with the quotation of currencies taking place continuously.
Forex profits are produced by the appreciation or depreciation of one currency against another.
Leverage allows traders to take positions significantly in excess of the funds available to them.
The forex market is influenced by supply and demand from different players such as central banks, economic data, political stability, and market sentiment.
The forex market is affected by macroeconomic and geopolitical factors such as inflation, disrupted supply chains, and tensions on energy markets.
The year 2022 marks the end of the prism in which we were, with the US FED increasing its interest rates more quickly compared to the ECB leading to a reversal of the EUR/USD pair.