What is FOREX?
FOREX is the acronym for Foreign Exchange, the largest financial market with global reach where currencies are traded electronically 24 hours a day.
Until recent years the foreign exchange market was only available to larger financial institutions, governments and corporations, which traded currencies to settle large financial or commercial related transactions. Technology, legal framework and financial strength were part of the required elements that kept this activity from reaching individuals.
How does FOREX work?
Currency Trading is the main activity in the foreign exchange market where buyers and sellers meet primarily in an over the counter (OTC) environment. Currencies are exchanged in large volumes for commercial or financial reasons.
The value of a currency fluctuates constantly and is influenced by many factors. Currency traders sell and buy currencies with the objective of capitalizing from intra-day volatility. In simple terms, traders try to buy low and sell high.
Some reasons to learn how to trade FOREX
- Only a few major currency swaps are traded as opposed to thousands of stocks
- FOREX price movements are unrelated to the stock market
- The return on your investments is not what you expected
- Trade part time or full time, 24 hours a day, five days a week
- Trade from home or anywhere you want
- Be your own boss
- No restrictions on short selling.
- 24-hour liquidity in just minutes
