Major Markets for Foreign Exchange

Now you are settled on joining foreign exchange currency trading and are asking where to head next. You have stumbled upon the right article to know where to trade in foreign currency.

Of all foreign exchange centers in the world, the one in London is the largest with 32 percent of the total foreign exchange market share. It is followed by foreign exchange trading centers in New York (18 percent) then Tokyo (8 percent). Closely behind Tokyo is Singaporean trading center at 7 percent. Hong Kong and Switzerland come next with 4 percent market share.

Foreign exchange market functions non-stop. Yes, foreign exchange trading operates 24 hours a day worldwide: there are no official opening and closing times. Trading in foreign exchange happens during normal working hours (from eight in the morning until noon and again from two in the afternoon until five). But then as the world rotates the evenings of one country is the morning of another one. And since foreign exchange trading transactions can happen anywhere in the world, trading goes on and on.

Foreign exchange trading say starts in Asia; when Asian financial centers close, it is the start of foreign exchange trading in London. When it is closing time for foreign exchange in London, foreign exchange trading in New York begins. These foreign exchange trading centers never close except on weekends and during holidays. But of course, you can go for the online foreign exchange.

Different time zones and geographical locations mean nothing or little to foreign exchange trade. Most of foreign exchange markets have no physical market place or financial buildings to locate because foreign exchange market could be made up of banks and dealers carrying out transactions over the telephone, internet, and other foreign exchange trading devices.

When you in a foreign exchange market you could either be involved in a spot market or in a forward market. In spot market, deals are arranged for immediate delivery. That delivery occurs in a matter of two working days at most. In forward market, transactions are done in one day and the delivery of goods in another day.

When you are ready to trade in foreign exchange, you can call or surf the Internet to conduct a transaction any time and anywhere. When you want immediate delivery of the goods in a matter of a few day go to the spot market. When you can wait for a few days more, you can try the forward market instead.