A currency value determined by supply and demand in the open market rather than fixed by government. It is one of the foundational building blocks of forex market structure, and misunderstanding it can lead to confusion when reading quotes or calculating trade size.
A currency value determined by supply and demand in the open market rather than fixed by government. It is one of the foundational building blocks of forex market structure, and misunderstanding it can lead to confusion when reading quotes or calculating trade size.
It's the system most major currencies operate under, enabling active forex trading. New traders benefit from internalizing this early, since it underpins much of the terminology and reasoning used throughout the rest of their trading education.
EUR, USD, GBP, and JPY all float freely against each other. In practice, traders typically encounter this directly within their trading platform, charting software, or an economic calendar, depending on the specific context in which it arises.
IUX
Exness
Vantage
XM
ICMarkets
LiteFinance
Moneta
Tickmill
South Africa (9)
India (9)
Bangladesh (12)
Germany (9)
Thailand (10)
Philippines (9)
Nigeria (10)
Vietnam (10)
Malaysia (9)
