iBlogForex » What Is Currency Trading http://www.iblogforex.com Wed, 17 Feb 2010 07:13:49 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 What is Currency Trading? http://www.iblogforex.com/forex-training/what-is-currency-trading http://www.iblogforex.com/forex-training/what-is-currency-trading#comments Thu, 28 Feb 2008 05:12:33 +0000 Jon http://www.iblogforex.com/forex-training/what-is-currency-trading
Currency trading on the Foreign Exchange (Forex) market is the simultaneous buying of one currency and selling of another one. The currency pair used for the trade is called a cross. The most commonly traded currencies are referred to as the “majors”, these are; EUR/USD, USD/JPY, USD/CHF and GBP/USD.

Currency trading is performed for a number of reasons, some of the main reasons are;
- To profit from long-term or short-term trends and fluctuations
- Companies hedging their international commercial contracts, to ensure a certain profit is locked in when the contract is completed.
- Companies/Investors/Banks/Hedge Funds diversifying their wealth into different currencies to minimize the risk of a drop in their home currency affecting their wealth.

Currency trading can be performed 24 hours a day 5 days a week, through Forex Brokers.

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