What Is Forex?
FOREX (FOReign EXchange market) is an international foreign exchange market, where money is sold and bought freely. FOREX was launched in the 1970s, to become the biggest liquid financial market today, dealing in more than hundred times the daily trading on the New York Stock Exchange. FOREX trading always involves buying one currency and selling another, so traders can easily trade in a rising or falling market. It literally follows the sun around the world. FOREX currency symbols are always three letters, where the first two letters identify the name of the country and the third letter identifies the name of, that country currency. FOREX, however, is a spot (cash) market in which trades executed within same business day. FOREX trading involves high risk and you can lose a substantial amount of money. It is a very unique market because it is not based in any particular place, and it also has very few qualifications for investing. But it is a more objective market, because if some of its participants would like to change prices, for some manipulative purpose, they would have to operate with tens of billions dollars.
That’s why it is a perfect market to invest in, as it is free from any external control and free competition. FOREX Trading requires the employing of technical as well as fundamental analyses. The main thing in the FOREX is that dollar competes with four main currencies: British pound sterling, Japanese yen, Swiss franc and Euro. It is a type of trading that goes on around the world and for that reason the trading of different currency pairs goes on constantly. It largely determines how much a currency is worth based on demand. FOREX transactions can help stabilize cash flows and profits, improve forecasts, and decrease uncertainty. FOREX is not centered at an exchange like the NYSE. It also allows highly leveraged trading with low margin requirements relative to its equity counterparts. FOREX investments can be made without actually having the money in an account too. FOREX trading can gain investors a large amount of money either over an extended duration, or in a short period of time.
Trading FOREX is like picking money up off the floor and not trading FOREX is giving another a chance to pick up. And the only time Forex is not being traded is when the whole world is in a weekend. Investing in FOREX is fairly simple and is practiced by anyone who wants to reap profits from solid investments. It is a business like any other business and planning is required. Learning Forex is the first step before getting involved in this type of trading. It can be very rewarding to a variety of people. The question is: Is FOREX for you?