WHAT IS FOREX



What is Forex?


Forex, also known as foreign exchange, FX or currency trading, is a decentralized global market where all the world's currencies trade. The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $5 trillion. All the world's combined stock markets don't even come close to this. But what does that mean to you? Take a closer look at forex trading and you may find some exciting trading opportunities unavailable with other investments.

FOREX TRANSACTION: IT'S ALL IN THE EXCHANGE

If you've ever traveled overseas, you've made a forex transaction. Take a trip to France and you convert your pounds into euros. When you do this, the forex exchange rate between the two currencies—based on supply and demand—determines how many euros you get for your pounds. And the exchange rate fluctuates continuously.

At this point in time, Forex is one of the largest trading vehicles in the world. To clarify this, the average trading volume of all the world’s stock exchanges combined is about 167 billion US dollars each day. As of 2007 the average volumes of the currency exchange markets exceed 3.2 trillion US dollar each day. In other words, Forex is huge, and the growth of Forex is expected to continue for years to come. As a trading vehicle it is one of the easiest markets to get into. And, if you take the time to learn what you’re doing, it can be one of the most profitable. All you need to get started in trading currencies is a Forex broker, and the software they use to allow you to trade. With a broker’s software installed you are then able to instantly connect to that broker and make trades in real-time. 

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