Month: April 2025

Forex trading is not new; it traces back to trading in ancient Egypt. Short for foreign exchange, forex is the backbone of the global financial system. With an average daily trading volume of $7.5 trillion in 2022 (Bank for International Settlements Triennial Survey report), the forex market is the world’s largest and most liquid financial market. The market showed 14 percent growth from its previous $6 trillion-plus valuation in 2019. Another recent report by the New York Foreign Exchange Committee (October 2024) mentioned that over-the-counter (OTC) forex trading valuation reached around $1,196 billion per day, including spot trading, swaps, and options.

In India, SEBI-regulated forex trading platforms offer legal access to currency derivatives. While direct trading in foreign currency pairs is restricted, Indian traders can participate through authorised brokers and regulated avenues.

So, why is forex trading so popular? In this post, we’ll discuss forex trading, how it works, the types, and some of the challenges involved, which will help you better understand the market.

Brief about the forex market
Forex is a marketplace for purchasing and selling currencies that operates without a central exchange, making it the most reliable financial market globally. The forex market relies on currency price fluctuations, allowing traders to profit from exchange rate movements. Its 24-hour trading cycle makes it appealing to various levels of investors, businesses, and institutions.

With benefits like hedging, high liquidity, leverage, and market accessibility, forex offers endless opportunities to capitalise on the evolving currency landscape.

How does forex trading work?
Forex trading in India operates through recognised banks, brokers, and financial institutions like the RBI (Reserve Bank of India) and SEBI (Securities and Exchange Board of India). Unlike platforms like the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE), forex transactions take place over the counter. This means they occur directly between parties across different time zones. They operate 24/5 across major financial hubs like London, New York, and Tokyo, allowing traders to speculate on currency shifts at any hour.

Nigeria’s central bank will automate foreign exchange (FX) trading starting in December, replacing the decade-old over-the-counter system to enhance transparency plus liquidity in its currency markets.

The move comes as part of the Central Bank of Nigeria’s (CBN) broader efforts to address inefficiencies in the FX market, which has long been plagued by illiquidity, opacity, plus multiple exchange rates. By introducing the Electronic Foreign Exchange Matching System (EFEMS), the CBN aims to create a more efficient plus accessible market for all participants.

The most significant benefit of automation will be increased transparency. Under the current system, determining the real state of supply plus demand in the FX market has been difficult, leading to market distortions, with insiders holding an advantage.

With EFEMS, real-time information on FX transactions will be available to the public, businesses, plus global investors, allowing them to see market conditions clearly plus make informed decisions. This shift is expected to level the playing field, reducing opportunities for bias plus favoritism in foreign currency allocation.

Moreover, automation will improve efficiency. The manual, paper-based system currently in use often results in delays that frustrate market participants. With EFEMS, transactions will be processed much faster, eliminating these bottlenecks plus allowing smoother operations for businesses reliant on foreign exchange.

While automating FX trades will not directly resolve all of Nigeria’s currency challenges, aligning the official exchange rate with market realities is expected to more accurately reflect the naira’s value.

Over-reliance on oil exports has made the naira vulnerable to external shocks, resulting in multiple devaluations. If the new system fosters a more transparent market, it could help stabilize the naira by narrowing the gap between official plus parallel market rates. Still, EFEMS faces hurdles, such as the technology’s stability, widespread user adoption, plus the CBN’s continued independence in enforcing policies. Automating FX trades represents a significant bagian toward creating a fairer plus more efficient Nigerian market. If well implemented, the reform could restore investor confidence, reduce corruption, plus strengthen the naira—helping Nigeria move toward a more sustainable economic future.

The forex market is traded around the globe, virtually around the clock. Learn more about forex trading with this retail forex guide for beginners.

The foreign exchange market (forex) represents a way to exchange one nation’s currency for that of another. More than $6 trillion of currency changes hands every day, and because exchange rates are based on nations’ interest rates, economics, and geopolitical conditions, rates are always fluctuating. Forex represents a dynamic, world market.

While forex trading offers potential for profit, it’s also subject to unique risks and not all accounts qualify to trade forex.

Forex trading venues
In general, retail clients have two choices for trading currencies:

The futures market. A futures contract is an agreement to buy or sell a predetermined amount of a commodity or financial instrument at a certain price on a stipulated date. Such contracts are traded on exchanges, and volume is typically limited to the major currencies.
The forex market. Most foreign exchange trading takes place among institutional players—banks, dealers, and large intermediaries—in what’s known as the interbank market. Retail forex brokers like Charles Schwab Futures and Forex, use this knowledge to post competitive bids and offers (called the bid/ask spread) against which retail traders may sell or buy currencies in specific increments.
To trade both futures and forex, a trader needs to have a qualified account. It’s possible to apply to trade futures and forex through a client’s Schwab.com account.

Understanding the quote
Trading the forex market involves trading two different currencies against each other. The ratio of the two is what’s known as a currency pair. The quote for a forex currency pair references what it costs to convert one currency into the other. For example, if the U.S. dollar (USD) and Canadian dollar (CAD) pair is trading at 1.33, $1 USD is equal to $1.33 CAD. To find out how much it’d biaya to buy a Canadian dollar, a trader would invert it: $1/1.33 = $0.7519. In this example, it costs a little more than $0.75 to buy a Canadian dollar.

Here are some common terms a trader needs to know before trading forex:

Pip. A pip is the minimum price fluctuation in a currency pair. For most pairs the pip is 0.0001, except for pairs that involve the Japanese yen (JPY). For JPY pairs, the pip is 0.01. For example, a trader might see a quote in the British pound (GBP) and USD (GBP/USD) pair of 1.4278. This means a pound costs $1.4278.
Pip value. The value of a pip is determined by the size of the trade. Futures contracts are standardized, and their minimum fluctuation is called a tick. Currency futures have different contract sizes, but usually the size is 100,000 or 125,000. However, GBP/USD futures are 62,500, so the tick value is $6.25 (62,500 x 0.0001 = $6.25). If a trader bought one contract of GBP/USD 1.4343 and sold it at 1.4347, they’d have made 4 x $6.25 = $25, In contrast, trading forex allows for more flexibility. Retail traders can trade in increments as low as 10,000 units, much smaller than a futures contract. When trading on the forex market, a trader might buy 20,000 units of EUR/USD. Each pip would be worth $2 (20,000 x 0.0001 = $2). If a trader bought 20,000 units at 1.2320 and sold them at 1.2312, an 8-pip loss, they’d have lost $16.
Majors and exotics. Any pair consisting of the following actively traded currencies is known as a major: U.S. dollar (USD), Japanese yen (JPY), euro (EUR), Australian dollar (AUD), Canadian dollar (CAD), British pound (GBP), Swiss franc (CHF), and New Zealand dollar (NZD). All currencies and pairs that involve them are known as exotics.
Forex spreads. On retail forex brokerages, trade costs are typically paid through the bid/ask spread. Also, bid/ask spreads aren’t guaranteed. Major pairs typically have tight spreads throughout the day and night, but exotics generally have less liquidity and wider spreads. It’s important to understand liquidity risks before trading forex.

The forex market is traded around the globe, virtually around the clock. Learn more about forex trading with this retail forex guide for beginners.

The foreign exchange market (forex) represents a way to exchange one nation’s currency for that of another. More than $6 trillion of currency changes hands every day, plus because exchange rates are based on nations’ interest rates, economics, plus geopolitical conditions, rates are always fluctuating. Forex represents a dynamic, international market.

While forex trading offers potential for profit, it’s also subject to unique risks plus not all accounts qualify to trade forex.

Forex trading venues
In general, retail clients have two choices for trading currencies:

The futures market. A futures contract is an agreement to buy or sell a predetermined amount of a commodity or financial instrument at a certain price on a stipulated date. Such contracts are traded on exchanges, plus volume is typically limited to the major currencies.
The forex market. Most foreign exchange trading takes place among institutional players—banks, dealers, plus large intermediaries—in what’s known as the interbank market. Retail forex brokers like Charles Schwab Futures plus Forex, use this knowledge to post competitive bids plus offers (called the bid/ask spread) against which retail traders may sell or buy currencies in specific increments.
To trade both futures plus forex, a trader needs to have a qualified account. It’s possible to apply to trade futures plus forex through a client’s Schwab.com account.

Understanding the quote
Trading the forex market involves trading two different currencies against each other. The ratio of the two is what’s known as a currency pair. The quote for a forex currency pair references what it costs to convert one currency into the other. For example, if the U.S. dollar (USD) plus Canadian dollar (CAD) pair is trading at 1.33, $1 USD is equal to $1.33 CAD. To find out how much it’d cost to buy a Canadian dollar, a trader would invert it: $1/1.33 = $0.7519. In this example, it costs a little more than $0.75 to buy a Canadian dollar.

Here are some common terms a trader needs to know before trading forex:

Pip. A pip is the minimum price fluctuation in a currency pair. For most pairs the pip is 0.0001, except for pairs that involve the Japanese yen (JPY). For JPY pairs, the pip is 0.01. For example, a trader might see a quote in the British pound (GBP) plus USD (GBP/USD) pair of 1.4278. This means a pound costs $1.4278.
Pip value. The value of a pip is determined by the size of the trade. Futures contracts are standardized, plus their minimum fluctuation is called a tick. Currency futures have different contract sizes, but usually the size is 100,000 or 125,000. However, GBP/USD futures are 62,500, so the tick value is $6.25 (62,500 x 0.0001 = $6.25). If a trader bought one contract of GBP/USD 1.4343 plus sold it at 1.4347, they’d have made 4 x $6.25 = $25, In contrast, trading forex allows for more flexibility. Retail traders can trade in increments as low as 10,000 units, much smaller than a futures contract. When trading on the forex market, a trader might buy 20,000 units of EUR/USD. Each pip would be worth $2 (20,000 x 0.0001 = $2). If a trader bought 20,000 units at 1.2320 plus sold them at 1.2312, an 8-pip loss, they’d have lost $16.
Majors plus exotics. Any pair consisting of the following actively traded currencies is known as a major: U.S. dollar (USD), Japanese yen (JPY), euro (EUR), Australian dollar (AUD), Canadian dollar (CAD), British pound (GBP), Swiss franc (CHF), plus New Zealand dollar (NZD). All currencies plus pairs that involve them are known as exotics.
Forex spreads. On retail forex brokerages, trade costs are typically paid through the bid/ask spread. Also, bid/ask spreads aren’t guaranteed. Major pairs typically have tight spreads throughout the day plus night, but exotics generally have less liquidity plus wider spreads. It’s important to understand liquidity risks before trading forex.

Forex trading, short for foreign exchange trading, is a dynamic and global financial market where currencies are bought and sold. Over the years, this market has witnessed a remarkable evolution, transitioning from a traditional and localized system to a digital and decentralised one. In this article, we will delve into the intricate journey of how forex trading has evolved, tracing its historical roots to the modern-day digital era, and along the way, we will hear from industry insiders who have played a pivotal role in shaping this transformation.

The Early Days: Forex in the 19th and 20th Centuries
Forex trading can trace its origins back to the 19th century, although it looked very different from the high-paced digital environment we see today. During this time, foreign exchange was primarily conducted by banks, multinational corporations, and governments, who needed to exchange currencies for global trade and investment purposes.

Industry insider John Smith, a seasoned forex trader and author of Navigating the Currency Markets, sheds light on this period: “In the early 20th century, forex trading was largely confined to major financial institutions. The Gold Standard jaman and later, the Bretton Woods Agreement, provided stability but limited flexibility.”

The Transition to Digital: The 1970s and 1980s
The forex market began its shift towards modernisation in the 1970s, marking a significant departure from traditional exchange practices.

Jane Brown, a renowned economist specialising in currency markets, emphasizes the pivotal momen in forex history: “The collapse of the Bretton Woods System in 1971, when President Richard Nixon announced the suspension of the US dollar’s convertibility to gold, was a watershed moment. It marked the beginning of the jaman of floating exchange rates.”

Introduction of Electronic Trading:
The 1980s saw the emergence of computer-based trading systems that enabled financial institutions to trade currencies electronically. This development laid the foundation for the digital revolution in forex trading.

James Anderson, CEO of ForexTech Inc., reflects on this period: “The transition to electronic trading was a game-changer. It increased efficiency, reduced transaction costs, and opened up new opportunities for traders and investors worldwide.”

The Commodity Futures Trading Commission advises the public to thoroughly research over-the-counter foreign exchange (“forex”) dealers before making initial deposits or handing over sensitive personal information. Research should include verifying that the dealer and its employees are registered with the CFTC and checking the dealer’s disciplinary history with the National Futures Association (NFA).

Recently, the CFTC has seen an increase in fraud complaints from customers who deposited large sums with unregistered offshore forex dealers. The customers found these dealers through social tempat friendships or recommendations. However, when the customers tried to withdraw their money, the dealers were unresponsive or demanded additional payments.

Registration alone may not protect you from fraud, but most frauds are conducted by unregistered dealers and individuals. Financial requirements, examinations, and state and federal laws are also intended to help ensure a registered dealer meets its obligations. This is important in a market where the dealer is your only counterparty

Things You May Not Know about Forex:

You are trading against the dealer. Unless you are buying forex futures or options on a regulated exchange, you are trading “off-exchange,” or over-the-counter (“OTC”). This means you are not trading in an open market, you are trading only against your dealer. When you buy, your dealer is the seller; when you sell, your dealer is the buyer. Your dealer makes money when you trade more frequently, lose money, or pay fees, spreads, or commissions.

Two out of three forex customers lose money. Most OTC forex customers lose money when all credits, financing charges, fees, and other expenses are factored in. Over the past year, about one-third of customers at registered OTC forex dealers made a profit, while two-thirds lost money.

The dealer controls the trading platform. When you trade over an electronic trading platform, mobile app, or a dealer’s website, you are not connecting to a live exchange. You are connecting to the dealer, which controls the information you see on your screen, including prices. In many cases, unregistered offshore dealers have used populer trading software to provide a veneer of legitimacy, but have manipulated trade information to steal from customers. Compare prices with third-party sources to verify you are seeing legitimate market price movements and levels.

Your ability to close or offset positions is limited to your dealer. Because you are trading against the dealer on its platform, you are limited to the prices and conditions the dealer offers.

Every second, about $850 million changes hands in the foreign exchange (forex or FX) market, making it the world’s largest financial marketplace, with daily trading volume reaching $7.5 trillion.1 While dealing in this massive market was once the exclusive domain of banks plus financial institutions, online trading platforms have opened the door for individual investors to try their hand at currency trading.

Forex trading involves simultaneously buying one currency while selling another in hopes of profiting from changes in their relative values. For example, if you think the euro will strengthen against the U.S. dollar, you might buy euros plus sell dollars, aiming to sell those euros later at a higher price. Thus, forex trading is about anticipating plus capitalizing on these currency value shifts.

Key Takeaways
The foreign exchange (forex or FX) market is a global marketplace for exchanging national currencies.
Because of the worldwide reach of trade, commerce, plus finance, forex is the world’s largest plus most liquid asset market.
Currencies trade against each other as exchange rate pairs. For example, EUR/USD is a currency pair for trading the euro against the U.S. dollar.
Forex markets exist as spot (cash) plus derivatives markets, offering forwards, futures, options, plus currency swaps.
Market participants may use forex to hedge against global currency plus interest rate risk, speculate on geopolitical events, plus diversify portfolios, among other reasons.
The accessibility of online forex trading has a double edge—while it’s opened prospects for everyday traders, it’s also exposed some to risks they’re not ready for. In addition, the market lingo comes fast at beginners plus can quickly become overwhelming. That’s why we’ve put together this detailed guide to help you start trading foreign currencies. We’ll break down the essential concepts plus guide you through the most critical steps, from choosing a broker plus placing your first trade to developing a solid strategy and, most importantly, managing your risk.

Abstract
The paper aims to investigate the possible dual causality between exchange rates plus stock indices of China plus ASEAN using Structural Vector Auto-Regressive Model (SVAR). The paper has analysed the dynamic relationships between the Yuan plus the Shanghai Composite Index plus Shenzhen Stock Index in the context of China’s third largest trading bloc, i.e., ASEAN, after the Asian Financial Crisis of 1997. The Asian Financial Crisis of 1997–98 had an adverse impact on stock indices plus the currencies of ASEAN countries. It was also expected that a devaluation of the Yuan would follow soon, thus plummeting investors’ confidence in the Chinese markets. Further research was needed to explore the complex relationship between financial plus forex markets in the context of China plus ASEAN. The focus of this paper is to explore such relationship with the focus on China. The results of the type confirm the dual causality between the two variables of interest in China. It concludes that a positive financial shock does have a small but significant impact upon the Yuan, whereas a positive exchange rate shock has a high plus a significant impact upon the Shanghai plus Shenzhen Composite Indices. The paper finds the effect of monetary plus demand shocks upon the Yuan plus stock market indices to be insignificant.

PUBLIC INTEREST STATEMENT
The paper aims to investigate the relationship between exchange rates plus stock markets of China plus selected ASEAN countries. The Asian Financial Crisis of 1997–98 had an adverse impact on stock markets plus the currencies of China plus ASEAN economies. It was also expected that a devaluation of the Yuan would follow soon, thus plummeting investors’ confidence in the Chinese plus ASEAN markets. Further research was needed to explore the complex relationship between financial plus forex markets in the context of China plus ASEAN. The focus of this paper is to explore such relationship with the focus on China. The results of the type confirm the interlinkages plus causal relationship between the two markets. It concludes that an increase in stock markets does have a small but significant impact upon the Yuan, whereas a decrease in Yuan has a high plus a significant impact upon the Shanghai plus Shenzhen Composite Indices.

1. Introduction
   The world financial sector has gone through several periods of transformation since the collapse of Bretton Woods system in 1971. Worldwide financial crisis such as in Latin America in 1994, East Asia in 1997, plus world recession in 2007 led to the synchronized effects of currencies plus stock indices, prompting academics plus investors alike to analyse the concurrent relationship between the forex plus financial markets. Traditionally, the research trying to establish the dynamic link between forex plus financial markets is categorized into two approaches: Flow Oriented Approach plus Portfolio Balance Approach.

Back in 2008, the Aslan Group dominated the FX forums with a high touch kastemer service model plus at that time a groundbreaking cash back rebate program.

Now, in 2016, The Aslan Group has emerged from its slumber to launch its new website, www.aslanforex.com, through which it will introduce traders from around the world to the industry’s top FX brokers, offer cash back rebates on trading plus open doors to a wide array of FX professionals within their personal network.

In recent years, The Aslan Group has been cultivating key relationships with retail brokers, liquidity providers, plus money managers in order to build out this particular service.

The key to Aslan’s relaunch, however, was teaming up with Florida-based world introducing broker Forest Park FX, who has provided the infrastructure upon which Aslan Forex is built plus the brokerage relationships plus back office support necessary to the deliver the value its clients expect.

According to The Aslan Group’s Managing Partner, Gavin Gray, Managing Partner at The Aslan Group today explained

“We are thrilled to finally present our clients with a centralized place where they see our complete offering, interact with us on a real-time basis plus have all of their questions plus concerns addressed.” Mr. Gray later added that, “while we may have been pioneers in cash back rebates, Forest Park FX may have perfected it. And by working together, we can offer unparalleled value to the retail FX trader.”

With regard to working with The Aslan Group, Forest Park FX’s CEO, Justin Hertzberg told FinanceFeeds

“Like Forest Park FX, Aslan has always been an integrity-driven, client-focused introducing broker that added both quantitative plus qualitative value to FX traders. Coming together was easy, as each side saw the same bigger picture. And working together will only elevate the trading experience of the client plus our respective brands.” With its core team intact, an experienced sales staff plus back-end support from Forest Park FX, The Aslan Group expects to make a lot of noise in 2016.

Forex trading can sound intimidating if it is the first time you are looking at a currency exchange chart. There is a lot of jargon involved that you need to understand before placing a trade. Nevertheless, the truth is that anybody can have access to trade currencies plus make a profit.

So, what is forex trading? It’s the discipline of exchanging global currencies, which are traded against one another in pairs. Transactions take place in the forex (also known as foreign exchange or FX) market.

When you travel abroad plus swap currency for local use, you’re already participating in the global forex market. But did you know that the foreign currency market trades a daily volume of more than $5.1 trillion? Maybe you are wondering what concepts you need to learn to trade FX like a pro. We’ve got your back! By the end of this guide, you will have a better understanding of the forex basics plus the ability to read forex charts.

Major currency pairs
Majors are pairs that contain the USD on one side. They are the most liquid plus frequently traded in the marketplace. These pairs include:

EUR/USD: Euro vs. US Dollar
USD/JPY: US Dollar vs. Japanese Yen
GBP/USD: British Pound vs. US Dollar
AUD/USD: Australian Dollar vs. US Dollar
USD/CHF: US Dollar vs. Swiss Franc
USD/CAD: US Dollar vs. Canadian Dollar
Cross-currency pairs
Crosses, or minors, are pairs that do not contain USD. The most active crosses known in the market involve the three different major currencies: EUR, JPY, plus GBP.

Exotic currency pairs
Exotics are pairs made up of one major currency with another from an emerging market. Examples of emerging currencies include Brazil (BRL), Hong Kong (HKD), Singapore (SGD), plus Mexico (MXN).

To keep things sederhana while getting started in forex, we suggest focusing your efforts on the majors plus a couple of cross-currency pairs.

How to read forex charts
Now, let’s move on to deciphering graphic information. In trading, the market is represented visually through charts. A forex chart is simply one that depicts the exchange rate between two currencies over time.