Forex, or foreign exchange, is a decentralized market where currencies are traded. It is the largest and most liquid financial market in the world, with an average daily trading volume of over $5 trillion. The forex market is accessible 24 hours a day, 5 days a week, and is open to anyone who wishes to trade currencies.
The forex market is made up of different currencies that are traded against each other. The most commonly traded currencies are the US dollar, euro, Japanese yen, British pound, Swiss franc, Canadian dollar, and Australian dollar. These currencies are known as the major currencies or “the big forex”.
The US dollar is the most traded currency in the world and is involved in over 80% of all forex transactions. This is because the US dollar is the world’s reserve currency and is used as a benchmark for many commodities, including oil. The euro is the second most traded currency and is used by 19 countries in the European Union. The Japanese yen is the third most traded currency and is often used as a safe-haven currency during times of economic uncertainty.
The British pound is the fourth most traded currency and is closely tied to the European Union due to the UK’s membership in the EU. The Swiss franc is often used as a safe-haven currency during times of economic uncertainty and is known for its stability. The Canadian dollar is heavily influenced by the price of oil, as Canada is a major oil-producing country. The Australian dollar is also heavily influenced by the price of commodities, particularly iron ore and coal.
The forex market is constantly fluctuating, with currencies rising and falling in value against each other. Traders can profit from these fluctuations by buying and selling currencies at the right time. For example, if a trader believes that the US dollar will increase in value against the euro, they can buy US dollars and sell euros. If their prediction is correct, they can sell the US dollars for a profit.
There are several factors that can influence the value of currencies in the forex market. These include economic indicators such as inflation, employment rates, and GDP growth, as well as geopolitical events such as elections and wars. Central banks also play a significant role in the forex market by setting interest rates and implementing monetary policies that can affect the value of currencies.
In conclusion, the big forex are the major currencies that are traded in the forex market. These currencies include the US dollar, euro, Japanese yen, British pound, Swiss franc, Canadian dollar, and Australian dollar. The forex market is constantly fluctuating, with currencies rising and falling in value against each other. Traders can profit from these fluctuations by buying and selling currencies at the right time. The value of currencies is influenced by a range of factors, including economic indicators, geopolitical events, and central bank policies.
