Forex Trading #1 What is Forex Trading?
Feb 12, 2017 under Business & Economy , Education and Reference
What is forex?
Did you know that the foreign exchange market (forex or FX) is the largest market in the world, with some US$5 trillion in average daily transactions? All the world's combined stock markets don't even come close to this. But what does that mean to you? Take a closer look at forex trading and you may find some exciting trading opportunities unavailable with other investments.
What is foreign exchange?
Foreign exchange, or forex, is the means by which individuals, companies and central banks convert one currency into another. While a lot of foreign exchange is done for practical purposes, the vast majority of currency conversion is undertaken with the aim of earning a profit.
The amount of currency converted everyday – over $5 trillion dollars’ worth – makes forex trading the biggest financial market in the world and can make some currency’s price movements extremely volatile. That volatility is part of why forex is so attractive to some traders: bringing about greater chance of high profits, while also increasing risk.
