What is Forex? Larger than the New York Stock Exchange, it is the biggest financial market in the world.
Forex trades the currency of one country for that of another country. Forex trading is done in pairs. The four main currency pairs are the US Dollar, the Japanese Yen, the British Pound and the Swiss Franc. In trading these pairs the first works as a commodity and the second works as money. Forex trading software takes care of trades for the trader automatically.
There is no central exchange for the Forex market. Currency pairs are traded by telephone or online through a network of global banks, brokers and currency traders.
What is Forex? Forex is known as FX, and stands for foreign exchange.
Forex is traded 24 hours a day from Sunday through Friday at 5 pm, Eastern Standard Time. Trading hours begin in Sydney, Australia and move around the globe as the business days begin in each country.
As fluctuations in currency happen, investors can respond on the spot by placing a trade through a broker with a phone call or just a few clicks on the computer. The entire transaction happens in just a few seconds. The response is immediate, day or night.
Investors and speculators trade currencies directly through a broker to benefit from the changes in currency exchange markets. They often buy a currency and sell it again within a very short period of time.
There are different ways in which to trade the Forex market. The spot market is where currencies are traded on the spot using current market prices. Futures are contracts to buy and sell at certain prices on a date in the future. Options are not contracts and give the buyer the same right to buy or sell at a certain price at a future date.
What is Forex? Forex is not a “get rich quick” scheme; however, fortunes have been made using it.