Foreign Exchange Market
Foreign Exchange
The global foreign exchange market is the largest and the most liquid financial market in the world, with average daily volumes in the trillions of dollars. Foreign exchange transactions can be done for spot or forward delivery. There is no centralized market for forex transactions, which are executed over the counter and around the clock.Take a closer look at forex trading and you may find some exciting trading opportunities unavailable in other investments.
Why choose forex?
Currencies are complicated, and we believe that taking FX risk is not rewarded over the medium to long-term investment horizons of most investors. We generally see FX as a portfolio risk that needs careful assessment and management, rather than as an opportunity to generate additional returns. Why hedge? With no clear return benefit over time, the key aim for many long-term investors is to reduce volatility. Currency moves can greatly increase the volatility of portfolio holdings. This is particularly the case for low-yielding fixed-income assets, as the green bars in the Keeping, a lid on volatility chart below show.
We see some room for taking FX risk in the short term, keeping in mind the liquid, 24-hour market is often the first to respond to unexpected events. We outline what we see as key drivers of currency moves: policies affecting interest rate differentials, investor sentiment and other technical factors, valuations, and economic fundamentals. We conclude we currently have a low conviction on most currencies.
WHY TRADE WITH Neura Asset ? Because we're a leading forex provider around the world, when you trade with GHH, you open access to benefits only a top broker can provide. CURRENCY PAIRS: AUD/CAD AUD/USD EUR/AUD EUR/CAD USD/CAD GBP/CAD