What is Forex: Forex Trade, Forex Trading or Forex Market Hello friends, this is the first chapter about Forex trading or Forex market. We will provide you the full information about forex trading on our site from beginning to the last. So read every chapter from about Forex Trading from our site.
Forex Maket is the global market which allows the exchange of one currency to another currency.
If you have ever travelled from one country to another country, you might have noticed that there are currency exchange booths at the airport. Before leaving your country to another country, you have exchange your country currency and exchanged with other country currency in which you are going to visit. This is called the currency exchange.
You might have noticed on the counter that a screen which displays the different currency exchange rates. The currency of each country changes very often.
Example of Forex Trading:
When you are exchanging your currency with other currency, this process is known as forex market participation due to exchange of one currency with another. In simple words what is the forex trading about, then its answers is that it’s nothering just exchange of currency with other currency.
Forex Trading Video
Another example of Forex Trading
In Forex Trading assume that you are visiting to America from India and in the process you have sold your Indian Rupees at the foreign exchange markets and boought dollars at a given rate
And after completing your journey from America to India, again you have to sell dollars and buy Indian Rupees at the currency exchange booth. But you might have noticed that the dollars rate or Indian rupee rate now has changed. This is the because the rate of a currency is not fix, it fluctuates time to time.
The foreign exchange market, is also known as forex or FX, which is the largest financial market in the whole world. It seems to be interesting! right!!
The New New York Stock Exchange (NYSE), trades a volume of about $22.4 billion every day. But In forex market more than $5 trillion volumes of trade are traded on a daily basis. This means that this is the biggest market in the world.
You might have heard about the NYSE in the news on the channel CNBC News, on Bloomberg or on BBC channel. The NYSE is the stock market exchange of USA. If you have heard about NYSE, then you might also have heard about Forex Market. If not, then we will guide you about Forex Market from basic to advance!!!
The Forex market is quite big! as compared to the NYSE. NYSE looks so small infront of the forex market. If you are an experienced trader and don’t know about forex market, then you must try forex trading because it gives you more opportunities to earn profit from the various currency pairs.
The Forex currency market is more than 200 times bigger! as compared to the stock market. Wow! it sounds great, this is true about forex.
This $5 trillion number of forex market covers the entire global foreign exchange market. The volume of daily trading from retail traders(like I and You) make up between 5 to 6% of overall traded volume or you can say between $300 to 400 billion!!
So now you see how big is the forex market.
Forex Market Timings:
The forex market opens for 5 days a week and 24 hours a day and only closes down during the weekend means on saturday and sunday.
It is because, the governments, private individual and corporate who requires the currency exchange services are all over the world. Only because of this Forex market never sleeps. But the stock market closes at the end of each business day.
There are so many other trading options, then why trade Forex? There are many reasons to trade in Forex. If we ask from four different types of person, you will get four different answers from them. But making money is the most common reason for why trade Forex.
Conclusion: In this chapter you got the information about Forex Trade and Forex market. In next chapter you will know what is traded in the forex market. If you have any query, then leave a comment in the comment box.