What is the Forex Market?

The foreign exchange market is the “place” where currencies are traded. Currency exchanges are important to everyone all over the world whether they realise it or not. Any produce purchased and brought into the country whether it is a piece of cheese or a car, currencies are exchanged during foreign exchange and business.

The huge demand for foreign exchange is the reason why the forex market is the largest, most liquid financial market in the world. From 1997 to the end of 2000, daily trading volume from forex trading has surged from 5 billion to 1.5 trillion dollars. Despite this unbelievable growth, the foreign exchange market continues to grow at a phenomenal rate. No other financial market has demonstrated this stellar growth in volume. One unique aspect of this international market is that there is no central marketplace for currency exchange. Instead, trade is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange.

The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centres ofLondon, NewYork,Tokyo,Zurich, Frankfurt,Hong Kong,Singapore,ParisandSydney- across almost every time zone. This means that when the trading day in theU.S.ends, the forex market begins inTokyoandHong Kong. As such, the forex market can be extremely active any time of the day, with price quotes changing constantly. Trading Forex is truly one of the best businesses in the world and one of the most profitable, and once you get it right it gives you everything you could wish for.

You can run your business from anywhere in the world, as long as you have a laptop and an internet connection you are ready to make money. Not only will  your broker open and close trades with little to no commission they let you have control of large sums of money with little initial investment. You have no office space to rent, no employees to pay and no one to answer to. Yes, trading the forex market is the ultimate job and there is nothing else quite like it in the world. Forex is the world’s largest and most liquid trading market. Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of Forex trading for income and investment because of its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities.

When you get this business right, trading Forex can be as easy as picking money up off the floor. Others in the industry have also said “trading Forex is like having an ATM machine on your own computer.” While both of these statements are very possible it is important to keep level headed and not let the pursuit of wealth get in the way of realistic goals. As you will soon discover trading forex is all about discipline and consistency. What FOREX traders do is much less risky than trading currencies on the futures market, much more profitable, and a lot easier than trading stocks and equities.

Forex provides the modern day trader with a much better and simpler alternative than stocks. First of all, there are only a few major currencies to trade; the U.S. Dollar, Japanese Yen, Euro, British Pound, and Swiss Franc are the most popular. A stock trader has to choose from a group of tens of thousands of stocks. This increases the complexity of selecting what to trade.

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