What is Forex
Foreign Exchange
(FOREX) is an arena where a nation's currency is exchanged for
that of another. The foreign exchange market concurrently is
the largest financial market in the world, with over $1.5
trillion dollars changing hands daily. This market alone is
more than three times the total amount of the US Equity and
Treasury markets combined. Unlike other financial markets, the
Forex market has no physical location and no central exchange.
It operates through an electronic network of banks,
corporations, institutional investors and individuals trading
one currency for another. The lack of a physical exchange
enables the Forex market to operate on a 24-hour basis,
spanning from one zone to another across the major financial
center of the globe.
Benefits of Trading Forex
-
Leverage - FOREX investors are permitted to trade
foreign currencies on a highly leveraged basis - up to 100
times their investment. For example, an investment of US
$1,000 would permit a trade up to US $100,000 of any
particular currency.
-
Compounding Profits - profits earned are automatically
reinvested for greater gains.
-
Liquidity - a powerful attraction to any investor as it
suggests the freedom to open or close a position at will
anytime during the 24-hour trading sessions.
-
24-hour, continuous currency exchange that never closes
(normal operations hours are Sunday 4pm through Friday 12pm
Pacific standard time).
- Utilizing
only a small portion of initial investment (anywhere from
10-30% of total investment) for margin deposit, no
predetermined cost is assessed.
-
Currencies are traded in pairs, for example USD/JPY or USD/CHF.
Every position involves the selling of one currency and the
buying of another. Added to the fact that gains can be made
when the market is to the upside as well to the downside.
Hi,
I am a forex trader.
Please contact me for
further details
marketstreetforex@yahoo.co.uk