What Is Forex Trading - Find Out What Forex Trading Is
Forex can be defined as the place where the currencies are traded. Forex is not a market in traditional sense as it does not have physical location of trading floor like we have in stock exchange or futures market etc. Forex is basically the knowledge and business of making the money in the Forex market by exchanging currencies of different countries. Forex is the place where currency of one country is exchanged or traded with that of another. In simple, we can say that Forex is the market where currencies are traded.
Forex is said to be the largest market in the world in terms of the total cash value traded. Trading in Forex market is opened 24 hours a day during the five working days of the week. The lack of physical existence of the Forex market provides the Forex market with liberty to be traded 24 hours a day spanning from time zone of one region to another. The Forex market is by far the largest and most liquid market in the world with an average traded volume in excess of approx $1.9 trillion per day and includes all of the currencies in the world.
Forex market includes the trading between large banks, central banks, multinational corporations, financial institutions, currency speculators, governments and financial markets. Like any market, there is a difference between bid and offer which is also known as spread. Traders in Forex market react sharply to the news which is related to the market, when it breaks. So as far as the theory is concerned, every stake holder in the market receives the same news at the same time and reacts accordingly. Forex market is said to be very unique market for many reasons, such as:
1)Trading volume of Forex market.
2)Geographical dispersion of Forex market.
3)The extreme and high liquidity of the Forex market.
4)The variety of factors which affects the exchange rate in the market.
5)The large number and variety of traders in the market.
6)The long trading hours (24 hours a day & 5 days a week).
7)And the low margin of profits compared to other markets of fixed income.
Making money with forex is not easy. You have to have a system and set of rules to succeed in this harsh market. I have been trading forex for 7 months and was not successful until i found Forex Killer. I lost 4 accounts and thousands of dollars before i found Forex Killer and since then i have never had one single losing week. Its a revolutionary system which gives you exact entry and exit points with stop loss and target profit. I have been averaging 1800 pips per month since i started using Forex Killer. Read my personal story and experience on Forex Killer HERE
Source: http://ezinearticles.com/
Added: April 29, 2008