The Forex Market
Forex is the short form of foreign exchange. Forex is nothing but exchange of international currencies or to put it simply it is the trading of money. Similar to any trade this one also is driven by market factors like demand and supply. Hence, Forex trade is done to gain profits out of investments in the currencies of various nations. This was initially done by governments of various nations as well as Banking and other financial institutions.
The Foreign exchange market is the largest market with maximum liquidity, in whichcurrencies are of all nations are bought and sold. It has a traded value of $ 1.9 trillion on an average for every single day. Any person, firm or country can participate in this trading.
There is no market place for the Forex trade; rather it is done across the counter. The Forex trading happens during 24 hours, of the 5.5 working days of the week. The currency trading happens across the world, and the main financial centers of Forex trade are London, Tokyo, Frankfurt, New York, Hong Kong, Paris, Singapore, Zürich and Sydney.
Forex Market has a large amount of investors and hence the biggest financial market of the whole world. The potential it has in providing quick gains is the attraction for investors. The internet has made Forex trading accessible to a whole lot of individual investors and thus made it very popular, in turn making it grow very fast. The most popular internet platform for trading in foreign exchange ismarketforex.net, which makes foreign currency trading very easy for the individual trader.
Till a few years ago, currency trading was very much limited to only large banks and financial firms. This was because only they had the access to the tools as well as the methods to undertake trading in the Forex market. However, in the recent times, technology, telecommunications has made it accessible to everyone who is interested in Forex trade. Apart from the internet the work timings of the markets i.e., 24 hours open market as well as the commission free nature of this trading are also the reasons for the lucrative nature of this market. This means investors can react to the major happenings of the market instantly, and also keep 100% of the profits of their trade.
Hence, Forex trading provides larger profits to the investors and traders on their money invested.