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What is Forex?The FOReign EXchange market is the largest financial market in the world. Trade Forex
(Foreign Exchange) simply means the buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for those of another. The currencies of the world are on a floating exchange rate, and are always traded in pairs – Euro/Dollar, Dollar/Yen, etc. In excess of 85 percent of all daily transactions involve trading of the major currencies.
The average daily turnover in the global Trade Forex markets is currently around US$ 3.2 trillion. FX trading has many advantages over equities as the foreign exchange market is open 24 hours a day and there is greater liquidity. Unlike the futures and stock markets, trading of currencies is not centralized on an exchange. Trade Forex literally follows the sun around the world. Trading moves from major banking centers of the U.S. to Australia and New Zealand, to the Far East, to Europe and finally back to the U.S.
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Tags: Forex Trade
