The foreign exchange market or the forex market, simply put, is a market that deals in trading different currencies. The purpose why it came into existence is to help the international trade and investment world be able to function well. It allows different types of institutions buy and sell currencies easily.
The forex market that we know today started in the 1970s. Its qualities are very unique as compared to those of other financial markets because of the following characteristics:
1. Trading in the forex market can be done in volumes.
2. The forex market is geographically encompassing.
3. In terms of liquidity, the forex market is incomparable.
4. The forex market offers its traders long hours of trading activities. As a matter of fact, forex trading activities can be done on a twenty-four (24) hour basis except during the weekends, specifically from 10:00 PM UTC on Sundays until 10:00 PM on Fridays).
5. There are a variety of elements that affects the forex market exchange rates.
6. The power of leveraging is really very useful in the forex market.
Because of the characteristics previously mentioned, the forex market is referred to by many financial analysts financial market professionals as the "closest to perfect" financial market. It is an ideal venue to invest good money in because of its extreme liquidity. In fact, according to the Triennial Central Bank Survey done in December 2007 by the Bank of International Settlements, the forex market averages a total daily turnover of around 3.98 trillion US dollars, with about 1.0005 trillion US dollars through spot transactions, 1.714 trillion US dollars through forex swaps, 362 billion dollars through outright forwards, and 129 billion US dollars as estimated gaps. This figures make it the most liquid, not to mention the largest, financial market in the entire global financial market, and because of these facts, a lot of people from all walks of like want to have a share of a piece of this very liquid financial pie.
The forex market is still continuing to grow even amidst these times of financial crisis. In fact, according to the FX Poll of Euromoney, the volumes being traded in the forex market grew at about forty-one (41) percent within a year, between 2007 and 2008.
Even with these figures and seemingly obvious reason to not lose in forex trading, still, a lot of people are not successful in their ventures in the forex market. Why? This is because they are not giving themselves the benefit of learning the ropes. Some of them just assume that since the forex market is a very liquid market, they have no way to lose as long as they gamble. But then, it is, in no way, a gambling arena. To earn even just a semblance of success in it, an aspiring forex trader should learn the ropes first.
The forex market that we know today started in the 1970s. Its qualities are very unique as compared to those of other financial markets because of the following characteristics:
1. Trading in the forex market can be done in volumes.
2. The forex market is geographically encompassing.
3. In terms of liquidity, the forex market is incomparable.
4. The forex market offers its traders long hours of trading activities. As a matter of fact, forex trading activities can be done on a twenty-four (24) hour basis except during the weekends, specifically from 10:00 PM UTC on Sundays until 10:00 PM on Fridays).
5. There are a variety of elements that affects the forex market exchange rates.
6. The power of leveraging is really very useful in the forex market.
Because of the characteristics previously mentioned, the forex market is referred to by many financial analysts financial market professionals as the "closest to perfect" financial market. It is an ideal venue to invest good money in because of its extreme liquidity. In fact, according to the Triennial Central Bank Survey done in December 2007 by the Bank of International Settlements, the forex market averages a total daily turnover of around 3.98 trillion US dollars, with about 1.0005 trillion US dollars through spot transactions, 1.714 trillion US dollars through forex swaps, 362 billion dollars through outright forwards, and 129 billion US dollars as estimated gaps. This figures make it the most liquid, not to mention the largest, financial market in the entire global financial market, and because of these facts, a lot of people from all walks of like want to have a share of a piece of this very liquid financial pie.
The forex market is still continuing to grow even amidst these times of financial crisis. In fact, according to the FX Poll of Euromoney, the volumes being traded in the forex market grew at about forty-one (41) percent within a year, between 2007 and 2008.
Even with these figures and seemingly obvious reason to not lose in forex trading, still, a lot of people are not successful in their ventures in the forex market. Why? This is because they are not giving themselves the benefit of learning the ropes. Some of them just assume that since the forex market is a very liquid market, they have no way to lose as long as they gamble. But then, it is, in no way, a gambling arena. To earn even just a semblance of success in it, an aspiring forex trader should learn the ropes first.
About the Author:
Managed forex trading starts with a desire to learn and a drive to become a great trader. Learning mini forex trading takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.
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