Since Forex trading has become so popular and there are Forex brokers who advertise their services all over the internet, traders should understand as much as possible about Forex trading before choosing a Forex broker. You can choose Blackstone Futures as one of the best brokers. The term ‘Forex’ is short for the currency market, the ‘place’ where different currencies are constantly exchanged by millions of people around the world.
It is not difficult to get a picture of Forex trading. Tourists traveling from one country to another must exchange currencies to pay for a local product or service. A bundle of euros would be totally useless for an Italian tourist who wants to visit the Sphinx in Egypt because it is not the locally accepted currency. The tourist would exchange his euros for the local currency, Egyptian pounds, at the existing exchange rate that day.
Even without much knowledge of forex trading, residents of one country exchange currency with another country every time they buy a foreign product. For example, someone living in the US who wants to buy a nice bottle of French wine can pay for this in dollars, but the wine has already been paid for in euros. Somewhere along the line, the wine producer or the US importer must have exchanged the equivalent of USD (USD) in euros. This is all about forex trading.
Unlike the New York Stock Exchange or other stock markets, there is no central foreign exchange marketplace. Instead, forex trading is done electronically over-the-counter (OTC), meaning that all transactions take place over computer networks between traders around the world, rather than through one centralized exchange. The market is open 24 hours a day, five and a half days a week.
Another thing about forex trading: the need to exchange currencies is the main reason why the Forex market is the largest, most liquid financial market in the world. It outperforms other markets, including the stock market, with an average traded value of approximately US $ 2,000 billion per day. Being aware of the scope of Forex trading should be enough of an introduction to Forex trading to motivate the avid investor to plunder his money and start trading.
Traders can make a lot of money by trading the Forex market. The more a trader knows about Forex trading, the more successful he will be. It is really a very simple concept. In our next lesson at FX Academy, you will learn more about Forex trading and what exactly is traded in the Forex markets. Stay tuned.
Why trade forex?
So why trade Forex? There are many reasons to trade with Forex and this lesson will discuss several of them, each of which can lead a beginner trader to take the step into Forex trading.
When you are done with the lesson, you will understand the opportunities available in the Forex markets.
So why trade Forex? Ask three different people and you will get more than three different answers. Right off the bat, making money is the most commonly cited reason why Forex. And this is perfectly legitimate motivation: we all live in a world where money, even if it can’t buy everything, can certainly make life a lot more enjoyable.