Foreign exchange involves trading one currency for another currency for various reasons, usually for trade, commerce or tourism. The foreign exchange market (Forex or FX) is a decentralized global marketplace for exchanging currencies against one another. The forex market is one of the biggest and most liquid market in the world because of the flourishing international trade and financial dealings worldwide.
In the forex market, currencies are traded 24 hours a day and five days a week, where currencies are bought and sold as per their relative price. Exchange rates change every moment, and it is this volatility factor that makes the forex market attractive to traders. Most of the currency trading that take place in the global forex market are brought/sold for speculative reasons. Forex market are mostly traded Over the Counter (OTC) where transactions get completed electronically.
The three different types of forex market are:
Spot forex market– A pair of currency is exchanged on the spot. This purchase or sale of a foreign currency for immediate delivery on a specified date is known as spot trade or spot transaction.
Forward forex market– A contract is made to purchase or sell a foreign currency at a specified price, and the settlement will be done on a set date in the future.
Future forex market– A legal agreement is made to purchase or sell a foreign currency at a predetermined price and specified date in the future. The futures contract is legally binding on the party.
Orient Financial Brokers (OFB), a well-known forex company in the UAE, is licensed and regulated by Central Bank of the UAE, to conduct brokerage in Foreign Exchange and Money Markets. OFB offers 24 hours online trading to deal in foreign exchange trading through its principals. With competitive margins, and leading-edge trading tools, OFB offers its customers numerous advantages and opportunities to deal in Forex.
To know more about the foreign exchange trading, forex market and opening an online forex account, visit the Forex FAQs on our site. If you need expert guidance on forex trading, do get in touch with Orient Financial Brokers at +97148713200 or visit orientfinance.com