Total the amount of money involved in a day’s trading on the US stock and Treasury Bills markets by three. And you’ll still have less than a third of the amount of money which exchanges hands on the currency Forex foreign exchange market. The currency Forex market is where the capital of one country US dollars. For instance is exchanged for that of another, like Japanese yen.
But unlike the world’s other economic markets, currency Forex trading is not centralized. There is no Wall Street or Throgmorton Street with a historic exchange building. Currency Forex trading exists only over telephone wires and Internet connections.
Currency Forex market
But exist it does, and it involve a global network of financial institutions, individuals, and banks all working around the clock and unhampered by international borders. Time and physical distance have no meaning in the currency Forex market.
At a one-time currency, Forex trading was the domain of banks that held large amounts of money in various currencies. So that they could participate in global investment and business opportunities. Individuals could participate in currency Forex trading only by going through their banks. But when exchange rates became unregulated, the volume of currency Forex trading began to mushroom.
What Is Currency Forex Trading?
When either a private corporation or government wishes to either buy or sell products or services in another country? It has to engage in “bartering” its national currency against the currency of the country where it wishes to do business. There are also large numbers of investment firms that trade the currency Forex market as a more speculative part of their portfolios.
And even individuals can participate in trading the currency Forex market, provided they have sufficient risk capital. They are willing to do the homework necessary to master the art of currency Forex trading. Which can be extremely complicated.
Currency Forex Trading At Home
Many individuals are drawn to the currency Forex market because they see it as a lucrative business that can be run from the convenience of their homes. All that is required is a personal computer with an Internet connection. A workstation organized to create a minimum of distractions. They see the currency Forex market as both inflation and deflation proof, and a way to make money regardless of the worldwide economic situation.
Investors make or lose money when trading the currency Forex market, depending on the fluctuations of the currency exchange rates.
All currencies are continually appreciating or depreciating in value when compared to one another, and it is up to the individual investor to understand how conditions around the globe will increase of decrease currency values before risking his or her money trading those currencies.