Forex market is the most famous financial market in the world. Forex market is financial market where global currencies are traded. In Brazil this Foreign Exchange is known as the inter-bank negotiations, the place where currency is bought and sold via internet. FX market is the largest as well as most liquid financial market among all other financial market in the world. Forex market generates heavy volume every day. The average volume of the foreign Exchange every day is about 3 trillion dollar. The good thing about this market is that it is open for 24 hours. Online forex trading is the best way to make money online.

The global currencies that are traded in Foreign Exchange are classified into 2, minor as well major currencies. All these major currencies are bought and sold on the foreign exchange and also are made steady by the ever ready and stable market. There are so many global currencies which are traded in the forex market but only 6 of them are the major currencies. These currencies are the U.S. dollar, the Canadian dollar, the British pound, Japanese yen, the Swiss franc and the Euro. Forex market decides the minor currencies randomly according to the everyday trades, daily activities of the currencies. Usually the Australian dollar and the New Zealand dollar are treated as the minor currencies.

The forex Bid and Ask Spread is very important factor in foreign exchanges. This is very true whether it is share trading, Forex trading, options trading, or any other asset. You can understand here that the Bid Price is highest price of the particular currency pair at which a trader wants to sell that particular currency pair and the Ask Price is level of price at which a forex trader wants to buy the currency pair, it is the lowest price of the currency pair. The difference between the two amounts is named the Bid/Ask Spread.

Now we are going to discuss about the forex spot and forward markets. These spot and forward contracts are available with all currency pairs. A spot contract allows traders to buy or sell any foreign currency at current market price, which is to be transacted physically in the 2 business days. A forward contract is traded with the lock in period at the pre-agreed market rate, these contracts are traded for the future date, and every contract has a particular expiry.

There are many key factors which affects the forex pricing. One key factor is the interest rates. When currency’s interest rate moves up quicker than that of the foreign currencies of their trading partners it becomes really hot. There are some more factors like Inflation, the rate of exports, political and psychological factors, technical factors or fundamental factors, economical factors affect the currency market pricing.

Summary: This article is all about the forex market and the major currencies of the forex market &their fundamentals, the foreign exchange quotations, Bid –Ask spreads, Spot and Forward markets and the key factors impacting Forex pricing.