What is Forex?
Forex trading involves transactions in which one party purchases a quantity of one currency by paying in a quantity of another currency. The Forex market (also called foreign exchange market) is a global decentralized financial market for the exchange of currencies. Around the world various financial centers act as hubs for trading between a wide range of different types of buyers and sellers 24 hours a day, except weekends.
It is the foreign exchange market that determines the value of one country’s currency relative to another. The Forex market is useful because it helps enable trade and transactions between countries, and it also allows an investment opportunity for risk seeking investors who don’t mind engaging in speculation.
Individuals who trade in the Forex market typically look carefully at a country’s economic and political situation, as these factors can influence the direction of its currency. One of the unique aspects of the Forex market is that the volume of trading is so high, partially because the units exchanged are so small. It is estimated that around 4 trillion USD goes through the Forex market each day.
Why choose/trade Forex?
Forex is the world’s biggest unint—upted market, and due to the high number of participants, the great volume and the diverse factors affecting prices, from many aspects it stands the closest to perfect competition. Due to the info-technological development of the last few years it has become available for everyone, only internet access and a computer is needed regardless of which part of the world you are. Forex is the most popular market of our times.
Some of its advantages:
• It is the biggest market of the world
• Numerous trading possibilities
• 24/5 opening
• Long / Short
• Low costs
• Leverage from 500:1
• Trading possibilities from 100 USD
• Free Demo account
The individual forex traders may choose a lot of possibilities in the foreign exchange market, now there is bigger trading freedom than ever was before. The most attractive benefit is that with relevant knowledge you can reach high profit in a short time thanks to the number of potentials which help the traders. The term of high leverage and low costs make the Forex more widely available. Start of the trading does not require a high capital.
Besides the individual traders there are account managers and trustees, so you may also benefit from the advantages of the forex trading, either if you do not have time to trade.