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What
is forex?
The
Foreign Exchange market (also referred to as the Forex or
FX market) is the largest financial market in the world, with
over $1.5 trillion changing hands every day. That is larger
than all US equity and Treasury markets combined! Unlike other
financial markets that operate at a centralized location (i.e.
stock exchange), the worldwide Forex market has no central
location. It is a global electronic network of banks, financial
institutions and individual traders, all involved in the buying
and selling of national currencies. Another major feature
of the Forex market is that it operates 24 hours a day, corresponding
to the opening and closing of financial centers in countries
all across the world, starting each day in Sydney, then Tokyo,
London and New York. At any time, in any location, there are
buyers and sellers, making the Forex market the most liquid
market in the world.
Whether
you are aware of it or not, you already play a role in the
Forex market. The simple fact that you have money in your
pocket makes you an investor in currency, particularly in
the US Dollar. By holding US Dollars, you have elected not
to hold the currencies of other nations. Your purchases of
stocks, bonds or other investments, along with money deposited
in your bank account, represent investments that rely heavily
on the integrity of the value of their denominated currency
¨C the US Dollar. Due to the changing value of the US
Dollar and the resulting fluctuations in exchange rates, your
investments may change in value, affecting your overall financial
status. With this in mind, it should be no surprise that many
investors have taken advantage of the fluctuation in Exchange
Rates, using the volatility of the Foreign Exchange market
as a way to increase their capital.
Traditionally,
access to the Forex market has been made available only to
banks and other large financial institutions. With advances
in technology over the years, however, the Forex market is
now available to everybody, from banks to money managers to
individual traders trading retail accounts. The time to get
involved in this exciting, global market has never been better
than now. Open an account and become an active player in the
largest market on the planet. Discover the advantages of investing
/ trading at Forex Market
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