The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to try to walk through a very simple guide to understanding the foreign exchange or Forex markets. The purpose of doing this is just to give you guys a little bit of an overview of what the Forex markets are and generally, why they’re around and how you could potentially use them if you wanted to trade or hedge in the foreign exchange markets. Again, the Forex market or FX market as it's commonly referred to is really just a huge over-the-counter or decentralized market for currencies all over the world. And so, the point of having a foreign exchange market and having all of these large institutional banks and international banks and financial brokers and interbank markets is basically to set a bunch of foreign exchange rates. And so, the idea is that the market is not necessarily setting a price of any particular denomination of currency, but it's setting it by pairs, so what is $1 if you were to pa