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What is Forex, anyway?

April 26, 2017forex

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What is Forex, anyway?

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The Foreign Exchange (Forex, FX) market is one of the biggest markets today. Daily turnover has skyrocketed from approximately 5 billion USD in 1977, to a staggering 3 trillion (and more) US dollars today. This is more than 40 times the daily turnover of the NASDAQ. Forex currency trading is attractive to traders as currency markets are constantly fluctuating and there is potential to profit whether a currency is going up or down. Traders trade on margin which leverages their potential gains. What also makes it so popular is that there is no centralized location for trading as there is in futures or stocks, and trading occurs around the clock over the telephone and on computer terminals at thousands of locations worldwide. Most foreign exchange activity consists of the spot business between the US dollar and the six major currencies (Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar). The Forex market is so large, and is hosting so many participants,