subject: Forex Trading involves Foreign Currency [print this page] Forex trading is all about trading foreign currency, stocks, and similar kinds of items. The currency of 1 nation is weighed against the currency of an additional country to determine worth. The value of that foreign currency is taken into consideration when buying and selling stocks about the Forex trading markets. Most nations have control over the value of that nations value, involving the currency, or cash. Those who are often involved within the Forex markets consist of banks, large businesses, governments, and financial institutions.
What makes the FOREX market different from the stock market? A forex market trade is one that involves at least two countries, and it can take place worldwide. The two countries are one, with the investor, and two, the country the money is being invested in. Most all transactions taking place in the FOREX market are going to take place through a broker, such as a bank.
What really makes up the Forex markets? The foreign exchange marketplace is made up of a variety of transactions and counties. Those included within the Forex trading marketplace are trading in big volumes, big amounts of cash. Those who are included in the Forex market are generally involved in cash businesses, or in the trade of really liquid assets that you are able to sell and buy fast. The market is big, very big. You could think about the Forex trading market to be much larger than the stock marketplace in any one country overall. Those included within the Forex market place are buying and selling everyday twenty-four hours a day and sometimes trading is completed about the weekend, but not all weekends.
You might be surprised at the number of people that are involved in FOREX trading. In the years 2004, almost two trillion dollars was an average daily trading volume. This is a huge number for the number of daily transactions to take place. Think about how much a trillion dollars really is and then times that by two, and this is the money that is changing hands every day!
The FOREX market is not something new, but has been used for over thirty years. With the introduction of computers, and then the internet, the trading on the FOREX market continues to grow as more and more people and businesses alike become aware of the availablily of this trading market. FOREX only accounts for about ten percent of the total trading from country to country, but as the popularity in this market continues to grow so could that number.
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