Forex Capital Markets
Overview
TurkishFX provides an online trading platform for individuals that want to
speculate on the exchange rate between two currencies. In doing so, traders buy
and sell currencies with the hope of making a profit when the value of the
currencies changes in their favor, whether from market news or events that take
place in the world. The forex market is the largest market in the world with
daily reported volume of over 1.8 trillion making it one of the most exciting
markets for trading
Market Hours
The spot FX market is unique to any other market in the world, as trading is
available 24-hours a day. Somewhere around the world, a financial center is open
for business, and banks and other institutions exchange currencies, every hour
of the day and night with generally only minor gaps on the weekend. Essentially
foreign exchange markets follow the sun around the world, giving traders the
flexibility of determining their trading day.
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|
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Tokyo Open |
7:00 PM |
0:00 |
|
| |
Tokyo Close |
4:00 AM |
9:00 |
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| |
London Open |
3:00 AM |
8:00 |
|
| |
London Close |
12:00 PM |
17:00 |
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| |
NY Open |
8:00 AM |
13:00 |
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| |
NY Close |
5:00 PM |
22:00 |
How an FX Trade Works
In this market you may buy or sell currencies. The objective is to earn a
profit from your position. Placing a trade in the foreign exchange market is
simple: the mechanics of a trade are virtually identical to those found in other
markets, so the transition for many traders is often seamless.
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Trader's Action |
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Euros |
US Dollars |
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| |
| |
A trader
purchases 10,000 euros in the beginning of 2001 when the EUR/USD rate was
.9600. |
|
+10,000 |
-9,600 |
|
| |
In May of
2003 the trader exchanges his 10,000 euro back into US dollar at the
market rate of 1.1800. |
|
-10,000 |
+11,800 |
|
| |
In this
example, the trader earned a gross profit of $2,200. |
|
0 |
+2,200 |
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