Differences

This shows you the differences between two versions of the page.

--- forex [2017/02/08 11:31] – [Forex (FX)] maya
+++ forex [2023/09/11 15:09] (current) – hammed
@@ Line 1: / Line 1: @@
 ====== Forex (FX) ======
-The foreign exchange (Forex) market is the global decentralized marketplace for currencies, and is the world’s largest and most liquid market, with an average traded value of $1.9 trillion every day.
+The foreign exchange (Forex) market is the global decentralized marketplace for currencies. It is the world’s largest and most liquid market, with an average traded value of $1.9 trillion every day.
-**Note:** Forex is an unregulated market, therefore Limit orders may be executed at up to the limit price regardless of the Level 1 market price. The SEC has prepared an __[[http://www.daytradetheworld.com/wiki/_media/sec-forex-trading-bulletin.pdf|Investor Bulletin]]__ with information on off-exchange Forex markets that provides additional details. Remember to always exercise caution when trading.
+**Note:** Forex is an unregulated market, therefore Limit orders may be executed at up to the limit price regardless of the Level1 market price. The SEC has prepared an [[ https://www.sec.gov/investor/alerts/forextrading.pdf | Investor Bulletin ]] with information on off-exchange Forex markets that provides additional details. Remember to always exercise caution when trading.
-Trading Hours: 18:00 - 16:00 ET (22 hours)\\
-Time Zone: UTC -05:00
 ==== Pairs ====
-Currency pairs are the quotation and pricing structure for trading in the forex market. The value of one currency is always determined by comparing it to another currency.
+Currency pairs are the quotation and pricing structure for trading in the Forex market. The value of one currency is always determined by comparing it to another currency.
 base currency = first currency of a pair\\
 quote currency = second currency of a pair
-For example, when trading the currency pair EUR/USD, EUR is the base currency, and USD is the quote currency.
+For example, when trading the currency pair EUR/USD, EUR is the base currency, and USD is the quote currency. The base currency is the currency that is being bought. The quotes represent how much of the quote currency is needed to purchase a unit of the base currency. If EUR/USD is quoting at 1.25, and you buy the pair, that means that you are using 1.25 USD to purchase 1 EUR. If you sell the pair, then you would be selling 1 EUR to receive 1.25 USD.
-The base currency is the currency that is being bought.
+For more information, see Investopedia's [[http://www.investopedia.com/terms/c/currencypair.asp|Currency Pair Definition]] page.
-The quotes represent how much of the quote currency is needed to purchase a unit of the base currency.
+==== Order Types ====
-For example, if EUR/USD is quoting at 1.25, and you buy the pair, that means that you are using 1.25 USD to purchase 1 EUR. If you sell the pair, then you would be selling 1 EUR to receive 1.25 USD.
+  * Limit Buy/Sell→ShortSell
+  * Market Buy/Sell→ShortSell
-For more information, see __[[http://www.investopedia.com/terms/c/currencypair.asp|Currency Pair Definition]]__.
+  * Pegged Buy/Sell→ShortSell
-==== Lit Order Types ====
-  * Limit order\\
-  * Market order\\
-  * Pegged order\\
 ==== Basic Market Rules ====
-  * Lot Size: minimum lot size for a currency pair is 25,000
+  * Lot Size: min. 100,000 shares.
-  * Tick Size: each currency pair has its own unique tick size
+  * Tick Size: varies by currency pair.
-  * Short Sell is allowed and no mark or locates are required for shorting
+  * Short Sale Rules: short selling is allowed, and no mark or locates are required for shorting.
+  * Orders executed for less than 100,000 will not appear in TOS.
+  * Aggressive orders not complying with the minimum execution size of a passive opposing order will lock the market.
+    * Minimum Execution Size: minimum quantity to be executed in order to complete the transaction.
-**Notes:**
-  * Orders executed for less than 100K will not appear in TOS.
-  * Aggressive orders not complying with the minimum execution size of a passive opposing order will lock the market.
-    * Minimum Execution Size: minimum quantity to be executed in order to complete the transaction
 ==== See Also ====
   * [[market_guides|Market Guides]]