Australian Shares – Introduction to FX
March 19, 2010
Australian Shares – Introduction to FX
The Australian sharemarket comprises approximately 2% of the value of global equities. Equity market transactions account for roughly one-third of daily capital flows in financial securities around the globe.
The rest is made up of predominantly foreign exchange, bonds and other credit instruments, and commodities.
So, if you are only looking at Australian shares, you are only looking at a tiny snippet of what opportunities the world offers the astute trader to take advantage of.
We believe one of the best markets to trade is the foreign exchange market and or as it is more commonly called FX.
FX is the ultimate of trading markets. It is the deepest, most liquid market on the planet, and is open practically 24 hours a day, 7 days a week.
When we say deep and liquid we mean that at any one time, there are literally trillions of dollars of buyers and sellers of the major currency pairs looking to transact with each other.
When Swiss Air purchases a Boeing 747 Jumbo, they will need to pay Boeing USD for it.
This will mean taking CHF out of their bank account in Switzerland, and converting it to USD to send to Boeing in America.
If you can imagine the scale of all international trade, you can easily understand why the FX market is so liquid.
Learn more about Australian shares and FX with the Australian Stock Report.