Forex Majors: Facts about the most important currencies

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Although many forex brokers allow trading in 120 different currency pairs and more, more than 90 percent of daily trading volume is in 7 currencies, also known as "forex majors". These are the currencies of large economies with established and highly developed financial systems.

The following pages provide some background information on the world's most important currencies. In addition to general data on economic conditions and the constitution of the respective central bank, important national economic indicators and the frequency of their publication play a role.

Non-stop trading without a break

Since the Forex market is decentralised and currencies are traded around the world, trading is interrupted less frequently than in the stock market, for example. Due to the time difference, trading can take place continuously from Sunday evening to Friday night. This not only gives investors more flexibility. Certain risks, such as the risk of opening gaps, are also eliminated or reduced.

On the foreign exchange market, you can bet on the appreciation of a currency just as much as on its depreciation. This is not surprising, since the appreciation of e.g. the US dollar against the euro is identical to its depreciation against the greenback.

This means that profits are possible in forex trading in any market situation. Traders can always find promising markets (= currency pairs) regardless of influences such as the economy, interest rate development or consumer sentiment. Since the foreign exchange market reflects many real economic conditions, investors can participate in the most diverse developments. A rise in commodity prices is just as much a part of this as an escalating national debt of a certain country.

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Online trading via professional platforms

The way to Forex trading for private investors in exness sign up leads via the trading platforms of Forex brokers. Their number is growing just as impressively as the scope of the services offered. Trading is carried out in real time: Positions can be opened and closed with just a few mouse clicks.

Most Forex brokers offer their clients a complete trading solution. In addition to pure order processing, the platforms also offer a free and continuous supply of real-time quotes, sophisticated charting applications, links to news from news agencies and other options for research and analysis. Learning materials, such as seminars and webinars for beginners and advanced traders, are also very often part of the offer.

Commission-free trading and low minimum deposits

Due to the ample equipment of most platforms, additional investments for price data, chart analysis programmes etc. are not necessary. However, the entry hurdles are moderate not only in this respect: most accounts can be opened with manageable minimum deposits starting at about 100 euros.

Only very few Forex brokers require more than 1000 euros. Unlike trading in shares, forex trading is also suitable for smaller account sizes: Trading with currencies is commission-free with practically all providers. The brokers generate their profit from the bid-ask spread, which lies between the buying and selling rate. The width of the spread varies greatly depending on the currency pair and broker. It can also change constantly - depending on the time of day or the general market conditions, for example.

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