What is Forex Charting Software?

Foreign Exchange (Forex) charting software is a computer program that gives the user the ability to track changes in foreign currency values, usually when investing in the Forex market. Investors use the Forex market to profit from trading currency from different countries. Forex charting software is similar to software used to track multiple stock tickers in the stock market. Variations of Forex charting software are available for mobile phones as well as laptop and desktop computers.

Also called FX or the currency exchange market, Forex trading allows an investor to buy and sell international currencies in an effort to make money from changes in the value of the currency. Forex investors who invest in many different currencies can benefit from using Forex charting software to track their investments. Popular kinds of currency exchanged on the Forex market include the US Dollar, the Euro and the Swiss Franc, but investors can buy many diverse types of currency.

Because so many types of currency are available on the Forex market, an investor might need Forex charting software if she is tracking the progress of several foreign currency investments. Mobile Forex charting software can help a busy investor check the progress of investments at times when accessing a computer would be inconvenient. Forex software applications used on the road can help an investor respond more quickly to changes in her investment value. A number of Forex charting websites offer online access to downloadable Forex charting software. These online services usually charge a monthly fee for access to charting software, but they often offer a 30-day free trial for new users.

Large Forex trades like those made by commercial banks are generally conducted over a system called the Interbank Market. The Interbank Market is a network of around 1,000 large banks that contact each other to arrange transactions involving large amounts of foreign currency, sometimes for a third-party buyer working with the banks. Foreign currency trades made over the Interbank Market can be roughly equated to the wholesale merchandise purchases made by large retailers on the wholesale market. The Interbank Market does not have a physical location where trades are conducted; usually, trades in the Interbank Market occur electronically or through direct contact between banks working within this market.

One means of investing in the Forex market is Forex futures. In Forex futures, the purchaser makes an agreement to buy a specified amount of foreign currency at an agreed-upon time, usually called the delivery date. By investing in Forex futures, the investor is essentially betting that the price of the foreign currency she buys will be higher than the agreed-upon transaction price when the delivery date comes to pass.