FOREX trading is about trading foreign currency, stocks, and similar type of products. The currency of one country is weighed against the currency of another country to determine value. The value of that foreign currency is taken into consideration when trading stocks on the FOREX markets. Most countries seem to have control over the value of that countries currency, or money.
Those who are often involved in the FOREX markets include banks, large businesses, governments, and financial institutions.
What makes the FOREX market different from the stock market?
A forex market trade is one that involves at least two countries, sometimes more, and it can take place worldwide. The countries are one, with the investor, and two, the country the money is being invested in. Most all transactions taking place in the FOREX market are going to take place through a broker, such as a bank.
What really makes up the FOREX markets?
The foreign exchange market is made up of a variety of transactions and countries. Those involved in the FOREX market are trading in large volumes, Huge amounts of money. You have heard that old saying, it takes money too make money ? In forex, Big money makes Big money.
Those who are involved in the FOREX market are generally involved in cash businesses, or in the trade of very liquid assets that you can sell and buy fast. The market is huge, very huge. You could consider the FOREX market to be much larger than the stock market in any one country overall. Those involved in the FOREX market are trading daily twenty-four hours a day and sometimes trading is completed on the weekend, but not all weekends as a rule.
You might be surprised at the number of people that are involved in FOREX trading. In the year 2004, almost two trillion dollars was an average daily trading volume. This is a huge number for the number of daily transactions to take place. Think about how much a trillion dollars really is and then times that by two, and this is the money that is changing hands every day!
The FOREX market is not something new, but has been used for over thirty years. With the introduction of computers, and then the Internet, the trading on the FOREX market continues to grow as more and more people and businesses alike become aware of the availablily of this trading market.
You can find a large amount of people selling Forex trading systems on line. About 20 - 40% of those systems are successful. What I mean by successful is they turn a consistent profit month after month.
FOREX only accounts for about ten percent of the total trading from country to country, but as the popularity in this market continues to grow so could that number...
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