Foreign exchange trading or Forex which is commonly known is where traders from all around the world trades financial instruments such as currency and stocks online.
How does it works?
Say let us take the case of Japan Yen with The US Dollars.You use your Japan Yen to trade for US Dollars and you can earn money thru the arbitraging of the currency.
Who are the parties involved in the Foreign Exchange Markets?
The parties that are involved in the forex markets include huge local banks from different countries,government related investment bodies,large multi-national businesses and financial institutions such as pension funds,private banks and insurance companies.
It works when there are two parties,one party consisting of the the investor and the other is the country where the money is being invested in by the investor.Normally,the trade is done thru a financial intermediaries such as the bank who acts as the broker to enable smooth transaction between the two party. This is just the miniscule of forex.
A forex market trade can be commenced as long as there are at least two or more parties involving in the deal and it takes place worldwide with millions of traders from different countries doing trades.
How Big is the Forex Market?
The foreign exchange market is made up of multiple parties trading in the Forex market large volumes of assets and large amounts of money which may amounts to millions at one time. The parties that participate in the forex market are generally those involving in business involving cash or doing trades of very liquidable assets that you can sell and buy fast.The market therefore acts like a meeting place for them to deal.
The forex market as you have understand is much larger than the stock market in any one country as it involves all the forex traders in the world gathering in one centralised market to do deal.
Even when you are reading this article now,there are traders in the Forex market that are trading and you can say that trading takes place 24 hours daily but do take note that the forex market is done usually during weekdays although there are times that traders may close their deals udring the weekend.
Just imagine the sheer number of traders that amounts to millions dealing with forex and you have an impression on the cash pot in forex
How much is the Forex industry worth?
As of a research and statistic recorded in the late 2004,there are close to two trillion dollars (that is two million million!) was traded on a daily basis.This is an astronomical number for compared to stock markets and think of the number of daily transactions that takes place.With so much cash flowing in the forex market daily,it is not surprised that people have gave up their daily job to trade daily on forex market as there are so much cash to be earned thru it.
The forex market has been around for more than 20 years and has been done in a brick and mortar manner but with the accessiblity of the computer and the internet,the forex trading continues to grow increasing and has taken to another level as more individual traders and smallers businesses trade online because of the ease and security that allows them to trade
Can I trade Forex online?
You might be surprised that trading Forex online is as easy as just a few clicks away on your mouse and anyone is able to trade as long as you have the basic knowledge of Forex.
The best thing is that opening an online forex account is totally Free.Just recently,there is the article that a Japanese housewife won over 5 million dollars thruout her Forex investing adventure for about 10 years with minimal capital.How did she do that?By trading forex online.
If a housewife can do it,with just a little knowledge,I am sure you cant see why you can't do it.Now you must be thinking, where to trade forex?
Get a Free Forex Account Now at /
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