Real Time Currency Trading Instructor
What, When And Why of Forex
The Foreign Exchange Market is also known as Forex, The forex market, and FX. Actually, this is the exchange of one currency for another country's currency; this is the biggest financial market in the world today.
The first transactions of the Forex Market was launched in the seventies; it is where the free exchange rate was first introduced. The participants were limited to bigger companies and banking firms.
The daily transaction turnover has reached over $1.5 trillion dollars. The Forex market is like an over-the-counter market where the sellers and buyers transact foreign exchange, commercially, by the use of many different communications.
Forex markets have no central exchange location; the trades are perpetually done on a 24-hour basis. It moves from one time zone to another, daily. Today Forex trading can also be done on the Internet.
Before the existence of eCommerce and the Internet, only the huge corporations, wealthy individuals, and multinational banks, could trade currencies. Before, they required investors to have $1 million US to participate in the trading business.
Today, individuals can easily participate in Forex trading. New investors can open a mini-account, with as low as $250, and they can participate in the trading world.
The Forex Market is open 24 hours a day and about 5 ½ days a week. You can participate in Forex trading, and at the same time do other business, as well.
Normally, currencies are continuously traded with the help of Forex brokers. Simultaneously, the currencies are bought and sold in the Global Market while traders can increase, or decrease, the value of their investment. It all depends on their decisions for the movement of the currencies.
Forex conditions vary in so many ways. It can change from time to time, in response to many situations. The conditions of the Forex market can change every second, without remaining at a single value.
We can look at the Forex exchange as a combination of the trading operations in the London, New York, and Tokyo stock and future exchange markets.
Statistics shows that Forex trading has the biggest share of the inter-bank market; 51% goes to spot Forex trading; 32% goes in currency swap trading; 5% goes to daily turnover; another 8% to options on the Forex trading "Interbank". A total of 96% of the inter-bank account goes for the Global Forex market.
In the market today, there are few main currencies to trade for, like the Euro, Dollar, British Pound, Yen, and Swiss Franc. These are the most-used currencies.
