You are about to discover a market that is a level playing field for both small and large investors as well as speculators. A market where there is amazing leverage. A market that is so huge that it cannot be controlled by large corporate traders.
The FOREX or FX is the Foreign Exchange market where the currency of one country is exchanged or traded against another. These transactions include trading between large banks, central banks and governments, currency speculators, multinational corporations, and other financial markets and institutions.
It is by far the largest financial market in the world with a daily trading volume in excess of $3.9 trillion. This daily volume is approximately 20 times larger than all of the world's stock markets COMBINED.
The FOREX is unique because:
- It is the crossroad for global capital, international trade & commerce, and investment.
- It is so huge that no government, institution or individual can control it.
- The huge volume makes it extremely liquid allowing traders to easily enter and exit trades at the price that they want.
- It is open 24 hours a day, 5 ½ days a week.
- It has no physical location. The market is a 100% electronic network of banks, brokers and other financial intermediaries geographically dispersed across every corner of the globe.
- Trades are executed and settled immediately.
- It is a Trader's Market. Trading the FOREX allows the trader to profit from both rising and falling currency prices and this market is not subject to recessions.
- Low Margin Requirements and High Leverage. The FOREX market gives traders the ability to leverage their returns by up to 400:1 times the capital in their trading account.
- Ease of Entry. FOREX brokers typically allow traders to open accounts with as little as $300 to $500.
- Traders Pay No Commissions. Brokers charge a small Bid/Ask spread when taking a trade, NOT both going in and out.
About Forex