FOREX

What is FOREX?

Foreign Exchange trading

(also called Forex, FX or currency trading) describes trading in the many currencies of the world. It is the largest market, which provides a large amount of liquidity to traders.

Each day the markets trade over $1.5 trillion, if you compare the New York Stock Exchange which trades $27 billion a day you can begin to see how massive this market really is.The spot Forex market trades are settled within two banking days.

There is no central exchange like futures, and most of the trades are done electronically. The big boy's in this game are the Banks, Hedge Funds and financial organisations.

The forex market

The volume in the foreign exchange market is massive, with around $4 trillion dollars being traded every single day. The international banks and financial investment companies are the main players but especially now with the internet and high speed connections, the market has opened up to the small private investors who are entering the market in their droves. The constant fluctuation in price between currencies provide a lucrative market for the shrewd investor.