ForEx Resources

Forex Money Trading Forum Section

• Home
• Videos
• Podcasts
• Sitemap

Custom Search

Forex Money Trading Forum Article

This is a selection made from among articles on Forex Money Trading Forum. For a permanent link to this article, or to bookmark it for future reading, click here.

Forex Profits

The Forex Market—What, When and Why?

Forex, FX and the Forex market are some common abbreviations for the Foreign Exchange market. Actually it is the largest financial market in the world, where money is sold and bought freely. In its present condition the Forex market was launched in the seventies, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from demand and supply. As far as the freedom from any external control and free competition are concerned, the Forex market is a perfect market.

With a daily turnover of over trillions of dollars, the Foreign Exchange market conducts more than three times the aggregate amount volume of the United States Equity and Treasury markets combined. The Forex market is an over-the-counter market where buyers and sellers conduct foreign exchange business using different means of communication.

Unlike other financial markets, the Forex market has no physical location or central exchange. Since the Forex market lacks a physical exchange, the market trades continuously on a 24-hour basis, moving from one time zone to the next, across each of the world’s major financial centers every day. Trillions of dollars of foreign exchange activity takes place every day. From 1997 to the end of 2000, daily forex trading volume surged approximately from US$5 billion to US$1.5 trillion and more (according to various recent studies it has touched $1.7 trillion per day and dwarfs all other markets for trading in size and volume). It is really difficult, if not impossible; to determine an absolutely exact number because trading is not centralized on an exchange. But one thing is for sure that the Forex market continues to grow at a phenomenal rate.

Before the advent of Internet and ecommerce, only big corporations, multinational banks and wealthy individuals could trade currencies in the Forex market through the use of the proprietary trading systems of banks. These systems required as much as US$1 million to open an account. Thanks to advancements in online technology, today investors with only a few thousand dollars can have access to the Forex market 24 hours a day and around 5 ½ days of a week.

The Forex market is a nonstop cash market where currencies of nations are traded, typically via brokers called forex brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets while traders increase or decrease value of an investment upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events so it is also considered to be a highly volatile and fragile market too. Conditions of the Forex market never remain the same they changes every second.

The foreign exchange market dwarfs the combined operations of the New York, London, and Tokyo futures and stock exchanges. According to its size and scope it is many times larger than all other markets. Stats shows that spot transactions and forward outright Forex trading take place in the inter-bank market. 51% of the market is in spot Forex transactions, followed by 32% in currency swap transactions. Forward outright Forex transactions represent another 5% of this daily turnover, with options on ‘interbank’ Forex transactions making up another 8%. Therefore the inter-bank market accounts for 96% of the global foreign exchange market, with the remaining 4% being divided among all the global futures exchanges.

For traders, Forex trading provides an alternative to stock market trading. While there are thousands of stocks to choose from, there are only a few major currencies to trade (the Dollar, Yen, British Pound, Swiss Franc, and the Euro are the most popular). Forex trading also provides a lot more leverage than stock trading, and the minimum investment to get started is a lot lower. Add to that the ability to choose flexible trading hours (forex trading goes on 24 hours a day) and you have the reason why so many stock traders have flocked to day trade currencies.

About the Author

Anthony Trister is a currency trader and is an owner of OneDayTrades which offers free, mechanical forex signals and an automated trading program for those wanting to trade forex. Free access available here: http://www.onedaytrades.com

Leave A Comment!

Close Your Name Email Address Add Your URL Your Comments Enter Captcha Code Shown To Left

Show All CommentsHide Most Comments | Post Your CommentsHide Comment Form

Additional Sponsors

Other Forex Money Trading Forum Related Articles

Your Mother Could Make Money In Forex Trading
Beginning Forex How Are Lots Traded What The Heck Is A Pip
Futures Versus Forex Foreign Exchange Market
Forex Trading Investment Secret Of The Rich And Powerful
Two Timeless Rules In Forex Investing

Do you want to contribute to our site: Submit your articles - HERE

Forex Money Trading Forum News

Interbank FX Named Best Trading Platform by Middle East Forex Awards.

Interbank FX (www.interbankfx.com), a worldwide provider of online off-exchange retail foreign currency (Forex/FX) trading was awarded Best Trading Platform 2009 by Arabcom's ME Forex Awards. The ME Forex awards are specifically designed to recognize the wealth of ingenuity and creativity from all

Publication: Economics Week

FXCM King of the Micro Enter the Forex Trading Competition.

Summary: See the article FXCM King of the Micro Enter the Forex Trading Competition New York, August 27, 2008 FXCM www.fxcm.com has announced that its "King of the Mini" contest has undergone a make over and will now be known as "King of the Micro" FXCM Micro is the discount brokerage division of

Publication: Mena Report

International Broadcasting Corporation to Air Its Premier Forex Currency Trading Show Today.

M2 PRESSWIRE-17 October 2006-International Broadcasting Corp: International Broadcasting Corporation to Air Its Premier Forex Currency Trading Show Today(C)1994-2006 M2 COMMUNICATIONS LTD RDATE:16102006 Spokane, WA - International Broadcasting Corporation (OTCBB: IBCS), is pleased to announce the

Publication: M2 Presswire

International Broadcasting Corporation Adds Forex Currency Trading to Its Radio Program Lineup.

SPOKANE, Wash. -- International Broadcasting Corporation (OTCBB: IBCS), is pleased to announce the addition of a new and exciting Forex Trading segment to its radio show lineup starting October 16, 2006. John Alesia, founder of BrownForex.com is the latest addition to the newly invigorated family

Publication: Business Wire

FXCM Offers Free Forex Education and Free Forex Trading Signals for the CNBC.com Million Dollar Portfolio Challenge.

NEW YORK, June 9 /PRNewswire/ -- FXCM (httpwww.fxcm.com the official currency-trading sponsor of the CNBC.com Million Dollar Portfolio Challenge, announced today that it is providing all contestants of the virtual trading competition with free forex education and trading signals to optimize their

Publication: PR Newswire