What Is Forex Trading? Can I Make Money From It?

Forex is an acronym for foreign exchange, a market where people exchange the currency of one country for the currency of another in order to do business internationally. Typical situations in which currency exchange is necessary include payments of imports and exports of purchases and the sale of goods or services between countries. Forex is also called the cash market or spot interbank market. The spot market means trading on the spot, at whatever the price is at the moment

Prior to 1994, the Forex retail interbank market for small individual speculative investors or traders was not available. A speculative investor, or speculative trader, is one which looks to make a profit on price movement in the market and is not looking to hold onto any currency long-term. But with the average minimum transaction size of $1,000,000, smaller traders were all bit excluded from participation in this market. Then in the late 1990s, retail market brokers (companies that facilitate the trades for speculative traders) were allowed to break up the large interbank units and offered individual traders the opportunity to participate in the Forex as we know it today.

Forex is considered the largest financial market in the world. The term market refers to a place where buyers and sellers are brought together to execute trading transactions. More then $1.5 trillion U.S dollars are traded daily on the Forex. By comparison $300 billion dollars is traded daily on the U.S Treasury bond market and $100 billon dollars is traded daily on the U.S stock market, for a total of $400 billion dollars per day. Forex trades nearly four times that volume daily, exceeding the daily combined activity of all the other financial markets

Forex has no physical locations – transactions are placed via the Internet or telephone – but is composed of approximately 4,500 international world banks and retail brokers. Individual traders wanting to profit by speculating on price changes can only access this market through Forex broker, such a I-TradeFX.com. It is a good practice of a speculative trader to only deal with Forex brokers that are regulated by the governmental bodies in their respective countries.

from http://ift.tt/2gZ8MMA