Important Things to know about your Currencies

This article is taken from the Forex Journal (October 2008 issue).

The author, Sunil Mangwani, is a Physics graduate with a Diploma in Financial Management. He has been trading the Forex market for the last 6 years and devises simple trading strategies based on his vast knowledge and in-depth study in the field of technical analysis.

  • Sunil Mangwani provides valuable insights into the relationships that exist between various major currency pairs and other major commodity markets. Intermarket analysis is a fairly new field of market study that is coming of age.

The Forex market is the largest financial market in the world, trading nearly $4 trillion each day.

This figure is ascertained by the Bank of International Settlements (BIS), which surveys major Forex market participants every three years. It creates a volume estimate based on the information it gathers. The most recent Bank of International Settlement survey was completed in April 2007 and yielded the estimated volume figure of Forex and related markets at over $4 trillion. On an interesting note, this figure represents an increase in volume of about 70% from the 2004 survey.

Since the Foreign Exchange currency market is a highly dynamic market with price oscillations within a single minute, it allows traders to enter and exit the market many times a day.

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