Jayden The foreign exchange market is the largest financial market in the world so far. Every day, nearly $2 trillion worth of currencies are traded back and forth in this market.
Forex, or foreign exchange, is a financial exchange where governments, banks, multinational corporations, hedge funds and individual investors exchange foreign currency.
For example, if you are flying to another country, the first thing you do when you get off the plane is to look for a currency exchange counter, where you can exchange your dollars for the currency of the country you are visiting, such as British pounds, Japanese Yen, etc.
Why would you do this? Because you know that when you take a taxi, stay in a hotel, or buy a souvenir, you need to pay in the local currency, not in dollars.
When you hand your dollars to the teller at the currency exchange counter and the teller gives you a stack of fancy bills, you have participated in the foreign exchange market. You have exchanged one currency for another.
Now, if you think about all the people traveling around the world, all the business activities that take place in multiple countries and regions, and all the governments that are conducting currency exchange activities, you begin to understand how large the foreign exchange market really is.
Those of you who travel abroad frequently may have noticed that the exchange rates offered at airport currency exchange counters seem never the same. They change all the time. Sometimes you can get more foreign currency, sometimes you can only get less foreign currency. This is because the exchange rates are constantly changing. It is these changes that allow you to make a lot of money in the forex trading market.
The forex trading market is the place where forex trading is traded, or where different currencies are exchanged for each other. The forex trading market is the largest financial market in the world now, with a daily turnover of US$2 trillion, compared to the US$25 billion daily turnovers of the New York Stock Exchange.
The daily trading volume of the forex trading market is more than three times the total daily trading volume of the securities and futures markets. Unlike other financial markets, such as the New York Stock Exchange, the forex trading market has neither a physical trading venue nor a single trading centre. The forex trading market is considered an over-the-counter (OTC) market, or the interbank market (Interbank Market).
Unfortunately, most individual investors are not aware that there are many new markets to participate in. They were focused on their stock accounts and have no time to focus on other investment opportunities.
The forex trading market has only been opened up to individual investors in recent years. While banks and other large institutions have been using the forex trading market for many years, individual investors were not qualified to participate in the forex trading market and were severely restricted for the first few years.
Only recently has it become easier for individual investors to enter the forex trading market and share in its benefits.
In addition, financial planners and stockbrokers did not do much to promote the development of the forex trading market. Why do they do this? Because most of them do not know what about the forex market, they do not get any benefit from introducing you to the forex market.
If you invest in the forex trading market, financial planners and stockbrokers can not profit from it, but if you invest in the stock market, they can earn a lot of commissions and fees.
