You don't have to be a daily trader to take the benefit of the forex
market - every time you go abroad or just take a trip outside the country and trade
your money into a foreign currency; you are contributing in the foreign
exchange (forex) market. According to research, the forex market produced $3.2
trillion dollars worth of transactions each day. This makes the forex market
the silent giant of economics, dwarfing over all other capital markets in its
world.
Even though this market's overpowering size, when it comes to trading
currencies, the perceptions are simple. Let's take a glance at several of the
basic concepts that all forex depositors need to understand.
Eight Majors
Unlike the stock market, where investors have thousands of stocks to
choose from, in the currency market, you only need to follow eight major
economies and then determine which will provide the most excellent underestimated
or overestimated prospects. These following eight countries make up the
majority of trade in the currency market:
1. United States
2. Eurozone (the ones
to watch are Germany, France, Italy and Spain)
3. Japan
4. United Kingdom
5. Switzerland
6. Canada
7. Australia
8. New Zealand
These economies have the biggest and most refined financial markets in
the world. By strictly focusing on these eight countries, we can take advantage
of earning interest income on the most credit valuable and liquid instruments
in the financial markets.
Economic data is released from these
countries on an almost daily basis, letting investors to keep on top of the
game when it comes to considering the health of each country and its economy.
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