What is Forex

What is Forex?

The word “FOREX” is often referred to Foreign Exchange Market which is also known as Currency Trading Market or FX Market whereby the two currencies are traded at ‘spot’ or future prices. It is one of the biggest decentralized markets in the world hence the trading takes place at “Over the Counter’ (OTC) i.e. not at centralized stock exchange. The market is so huge that there is never shortage of liquidity except on few days where there is shortage or excess of traders trading in FOREX market.

It is very rare that two currencies have a same exchange rate & moves in same direction even if the governance is same. This is because of several economic factors such as Gross Domestic Product (GDP), Per capita Income (PCI), Foreign Direct Investment (FDI), Foreign Institutional Investment (FII), Industrial Production etc. There is always vast difference in economic data for different countries in order to measure the economic progress of a country.

The Forex Market is Huge

Thanks to its sheer size, it is almost not possible for anyone person, institution or government to management the forex marketplace for long. At a calculable $3.98 trillion and, the average daily turnover of the forex market easily trumps that of the big apple and London Stock exchanges place along.

The Forex Market has Unrivaled Liquidity

With its massive scale and 24/5 accessibility, forex is exceptionally liquid, making getting into and exiting even terribly giant positions relatively easy. With massive firms and central banks commercialism forex, there’s plenty of area for you, too!

Forex is Open to Everyone

The forex market was once the domain of institutions and affluent people. Thanks to the web, all that has changed.

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