FX Trading - Canada's Online Forex Resource

Whether you are a seasoned investor or just someone who is interested in broadening their financial horizons, the FX or 'Forex' marketplace provides an opportunity for profit like no other!

FX trading is also known as foreign exchange, currency, or forex trading. FX trading and
its transactions entail one party buying a sum of one particular currency in return for a
specific amount of another currency. Indeed, the FX market remains as among the most liquid
markets in existence.

Some Statistics Regarding the FX Trading Processes

FX trading involves big banks, central banks, governments, speculators, and other entties. Average volume (daily) in world forex and linked markets rises constantly. The usual turnover was pegged to be above $3.2 trillion in April of 2007, based on the findings of
the Bank for International Settlement.

Why the FX market is unique

The FX market is different from other financial markets because of the following factors -- the trading volumes, the market's liquidity, the variety of the traders, the fx market's geographical range, the many elements affecting the rates of exchange, and the utilization
of leverage.

The levels of the forex market

Unlike in a stock market where every trader and investor has access to similar rates, the
FX market is divided into gradations of access. Top-level access is given to the inter-bank
market, which is composed of the biggest investment banking entities. Levels of access that
come into play in FX trading are determined by the line size, referred to as the sum of
money which the parties are trading with. After the top-tier firms, smaller banks come into
action, followed by big multi-national corporations, some forex-metal market players, and
hedge funds.

According to expert insiders, companies managing mutual funds and pension funds have played
pivotal roles in financial markets, especially in the FX market. The many central banks all
over the world also play crucial parts as they align the currencies with the needs of
their local economies.