What Is Foreign Exchange (Forex)?
Foreign Exchange (forex or FX) is the trading of one currency for another. For example, one can swap the U.S.
dollar for the euro. Foreign exchange transactions can take place on the foreign exchange market, also known as the forex market.
The forex market is the largest, most liquid market in the world, with trillions of dollars changing hands every day.
There is no centralized location. Rather, the forex market is an electronic network of banks, brokers, institutions,
and individual traders (mostly trading through brokers or banks).
- Foreign Exchange (forex or FX) is a global market for exchanging national
currencies with one another.
- Foreign exchange venues comprise the largest securities market in the world
by nominal value, with trillions of dollars changing hands each day.
- Foreign exchange trading utilizes currency pairs, priced in terms of one versus
- Forwards and futures are another way to participate in the forex market.
Forex exists so that large amounts of one currency can be exchanged for the
equivalent value in another currency at the current market rate.
Some of these trades occur because financial institutions, companies, or individuals have a business
need to exchange one currency for another. For example, an American company may trade U.S.
dollars for Japanese yen in order to pay for merchandise that has been ordered from Japan
and is payable in yen.
A great deal of forex trade exists to accommodate speculation on the direction of currency values.
Traders profit from the price movement of a particular pair of currencies.
Forex Pairs and Quotes
Currencies being traded are listed in pairs, such as USD/CAD, EUR/USD, or USD/JPY.
These represent the U.S. dollar (USD) versus the Canadian dollar (CAD), the Euro
(EUR) versus the USD, and the USD versus the Japanese Yen (JPY).
There will also be a price associated with each pair, such as 1.2569. If this price was
associated with the USD/CAD pair it means that it costs 1.2569 CAD to buy one USD.
If the price increases to 1.3336, it now costs 1.3336 CAD to buy one USD. The USD
has increased in value (the CAD has decreased) as it now costs more CAD to buy one USD.
We, Atom markets provide online Forex trading services to clients worldwide. However, due to regulatory restrictions, we are unable to offer our services in certain jurisdictions.
It is the responsibility of the user to ensure that the use of our services is permitted in their jurisdiction. The list of restricted jurisdictions may change from time to time, and it is the user's responsibility to check for updates.
Currently, we do not offer our services to residents or citizens of the following countries:
Countries with strict Sharia laws such as Pakistan.
By accessing or using our services, you represent and warrant that you are not a resident or citizen of any of the above-mentioned jurisdictions. If you are a resident or citizen of any of these jurisdictions, you must not use our services.
We reserve the right to refuse to provide our services to anyone at any time, including without limitation, if we believe that the use of our services is not permitted in their jurisdiction.
Please note that trading in Forex and other financial products carries a high level of risk and may not be suitable for all investors. Before using our services, please ensure that you fully understand the risks involved and seek independent financial advice if necessary.
By using our services, you acknowledge that you have read, understood, and agreed to the terms and conditions outlined in this disclaimer.