What is Forex?
The foreign exchange – or Forex (FX) – market refers to the buying and selling of currencies, and it’s one of the fastest growing markets in the world. From 2007 to 2010, Forex market activity increased by 20%, with average daily turnover reaching nearly $4 trillion in April of 2010.
Forex trading functions very similarly to the traditional stock market: you buy low and sell high. One significant benefit of Forex trading is that you don’t have to choose from amongst thousands of companies or sectors. Moreover, many Forex trading decisions can be simplified even further.
For example, most people, even those new to Forex, have an opinion on the US dollar and the US economy. Those opinions can be easily translated into a specific Forex trade. Buying or selling US Dollars is as simple as buying or selling a particular company’s stock.
Another advantage of the FX market is that it isn’t limited to a seven-hour trading day. Trading takes place 24-hours per day, five days per week. For most people, 24-hour trading enables participation outside of normal working hours.
Trading Forex carries risk and could result in the loss of your investment. Please trade wisely.