Mark Smith

Forex markets are platforms wherein banks, governments, businesses, traders, and investors meet to buy and sell foreign exchange or forex for short. Forex markets are open for business 5 days a week and 24 hours a day.

Important forex markets are located in New York, London, Zurich, Tokyo, Hong Kong, Frankfurt, Sydney, Singapore, and Paris

Back in 1876, the gold standard system was set up which made it mandatory for all nations to back their currencies with solid gold

This system was called Bretton Woods monetary system.

971, the United States of America stopped using this system and adopted fiat money instead. In “fiat money” system, the government declared the currency as legal tender and it does not need the backing of physical gold or silver. The value of the currency is arrived at by the relationship be

between the demand and supply of the currency.

nce fiat money translates to the currency, which the government “orders” to accept as a form of payment or legal tender.

US Dollar – USD
Euro – EUR
Japanese Yen – JPY
British Pounds – GBP
Swiss Franc – CHF
Canadian Dollar – CAD
Australian Dollar – AUD
New Zealand Dollar – NZ

urrency pairs – In the forex markets, rates are always quoted using currency pairs. This is because you are buying one currency by paying for it in the other currency.

Dealers – are also known as “market makers” because they “make the market” for you. They act as counterparties for you and quote a price that they will do the transaction at. Dealers make their money on the spread or the difference between the buying and selling price.