WHO IS MARIO SINGH?
Mario Singh is the founder and CEO of FX1 Academy which is the first and regarded as the largest Forex education company in Singapore and Malaysia. He is a philanthropist and He has personally touched the lives of over 20,000 people, helping them move closer to their financial goals through Forex trading. Mario Singh is also the director of training and education of FXPRIMUS which is Asia's fastest growing Forex broker. He also writes a weekly Forex column for a Singaporean national newspaper, My Paper.
Here is a thing or two we have learnt from Mario Singh concerning Forex Trading.
DO YOU KNOW WHAT FOREIGN EXCHANGE IS?
According to Mario Singh, Foreign Exchange (FX or Forex) is one of the largest and most liquid financial markets in the world. According to the authoritative Triennial Central Bank Survey from Bank for International Settlements, Basel, average daily turnover in April 2007 exceeded US $3.2 trillion, and evidence suggests that the market is still expanding. The spot market accounts for around a third of activity in the FX market.
Foreign exchange is very simple to understand once one realizes that a currency is effectively a commodity whose value can change against other currencies, as well as other assets, such as gold and oil.
WHAT DO YOU UNDERSTAND BY FX TRADING?
In a foreign exchange transaction, one currency is sold in exchange for another one. The rate is said to express the relative value between the two currencies. Currencies are usually identified by a three-digit ‘Swift’ code. For instance, EUR = the euro, USD = the US dollar, CHF = the Swiss franc and so on. For example A EUR/USD rate of 2.5000 means that €1 is worth $2.5.
And Sometimes, EUR/USD can be referred to as a currency pair. The rate can be inverted. So a USD/EUR rate of 2.5000 is the same as a EUR/USD rate of 0.6666. In other words, $2 is worth €0.6666. The market ideology is that most currencies tend to be quoted against the dollar, but there are some notable exceptions, such as with the USD/EUR already mentioned.
There are two types of foreign exchange rate systems.
- Flexible Exchange Rate System.
- Fixed Exchange Rate System:
ANOTHER QUESTION IS THAT "WHAT ARE THE MAJOR THINGS THAT INFLUENCE THE FX PRICES?”
There could be numerous factors that determine a free floating currency’s worth in the market which ranges from international trade flow, economic and political conditions, and the level of interest rates to simple short-term supply and demand. Unlike many other assets, FX is a pure market and rates move freely both up and down.
He also regarded the forex market as an ‘over the counter market’ (OTC), this means that there is no physical location and no central exchange and clearing hours where orders are matched. Instead, it is operated 24-hours a day via an electronic network of banks, corporations and individuals trading one currency for another.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.