
Globally, is a major business, and it is estimated that over US$2 trillion is traded everyday. The system of currency trading is also referred to as , Forex, or FX for short. The currencies traded have a relative value to other currencies. The trading uses the purchase and sale of large quantities of currency to leverage the shift in order to earn profit.
Fluctuation in the relative is caused by two reasons. The first reason being the “real” market, i.e. in case a foreigner wants to buy a commodity, he is forced to convert his domestic currency into the currency of the visiting place, the currency also fluctuates as it leaves a state.
Speculation is another factor on which the currency fluctuates. The heavy in the market can drastically impact the value of the currency. This speculation has been responsible for drastic consequences on the national currency, consequently hampering the growth of a country’s economy.
Analysts also consider a very “fast market” which is highly volatile. An individual has to take into account technical and fundamental data and make an informed decision based on his perception of market sentiments and market expectations to become a successful trader. One of the variables that is most important in currency trading is timing. The trader has to be aware of the happenings in the market, and also has to understand the nuances of the market to play safely.









