Know The Euro's Overall Standing In The Forex Industry

The foreign exchange market is known to be the most profitable market in trading

. Compared to stock market, it has higher liquidity and leverage. It actually has lots of advantages for example it doesn't require any time or place to trade unlike the stock industry. The forex echange market is open 24 -hours in the business week. Over two trillion dollars are traded and sold every single day.

In the forex industry there are currency pairs that most novice traders do not understand. These pairs are the terminologies that are used in trading forex. Here are the six (6) major currency trading pairs in the forex exchange business, namely: the euro and the US dollar (EUR/USD), the Japanese yen and the US dollar (JPY/USD), the US dollar and the Swiss Franc (USD/CHF), the Australian dollar and the US dollar (AUD/USD), the British pound and the US dollar (GBP/USD) and the US dollar and the Canadian dollar (USD/CAD).

One of the strongest and in demand currency among the pairs is the Euro. It is widely use in twelve countries in Europe. Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, and Sweden are the states that belong to the European Union and use the Euro as their currency. There are only two countries that belong to the European Union who don't use the Euro as their official currency. The two countries are Denmark and United Kingdom. The new comer in making Euro as their official currency is Sweden that was announced in 2005.

All of the currency rates depend on the economy of the state where it is used. Hence, Euro is used in numerous of wealthy countries. It's expected to play a big role in the forex trading industry. In 1999, most of the nations mentioned locked to use Euro as their currency. Since then, Euro has been very well known and very competitive in the forex market. The worth of Euro has risen due to this occurence and became widely known to several countries across the world like the US dollars.

Having the same currency in many countries is good for the public but somehow it's partly the downfall of the forex exchange industry. Euro is known to be famous in the forex trading and the exchange of rates in those countries is very low since they are using the same currency. Somehow the companies that have these predicaments discoverd a way with the help of the intra-European exports. It is shouldering this heavy issue. On the other hand, it is an advantage to the public for they can cross countries within the European Union without exchanging their money. For quite sometime now, the European markets have been wealthy because of the euro's performance in the forex market.

by: Melvin Zarcilla

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