| Forex that
stand for "Foreign Currency Exchange Market" is used by
a company or government to buys or sells products and services in
foreign countries.
All these activities
need foreign currency trade; the exchanging of one currency for
another.
Many individuals
or organizations also trade currencies for speculative purposes.
These currency transactions going on daily.
Forex
or FX is the largest financial market in the world. It is bigger
than all of the US stock markets combined. The daily trading volume
is larger than all of the world's stock markets put together.
Trillions
of dollars of foreign exchange activity takes place every day. From
1997 to the end of 2000, daily forex trading volume surged from
US$5 billion to US$1.5 trillion and the forex market continues to
grow at a phenomenal rate.
Before
the internet came along, only corporations and wealthy individuals
could trade currencies in the forex market through the use of the
proprietary trading systems of banks, which require as much as US$1
million to open an account.
With
internet, today investors with only a few thousand dollars can have
access to the forex market 24 hours a day.
The
advantage of Forex Trading:
- Can
trade major currency; Dollar, Yen, British Pound, Swiss Franc
and Euro.
- Provides
a lot more leverage than stock trading, and the minimum investment
to get started is a lot lower.
- Flexible
trading hours. Forex trading goes on 24 hours a day.
|
