Contrary to what most people in the financial world believe, the Foreign Exchange Market is really the pinnacle of financial trading. The foreign exchange market, also known as the Forex market, has a daily volume in excess of 1.5 trillion in United States dollars. This staggering amount is over one hundred times larger than the volume of the NYSE.
The market is world wide. It is what is known as an "interbank" market where trades are conducted OTC (over the counter), which means they take place directly between the parties involved in the trade rather than through a central exchange. The main centers for the Forex market are located in Sydney, New York, Tokyo, Frankfurt and London. Consequently, the Forex market operates essentially 24 hours a day. Put simply, the Forex market is based on trading the currency of one country for the currency of another country. The ratio of the economic value of one currency to the other grows and falls, and this ratio is what fuels the market.
The trades consist of the simultaneous purchasing of one currency, for example, United States Dollars (USD), and the selling of another, i.e. The European Euro (EUR).
The largest market in Forex trading is called the "spot market" because sells are executed at once, or "on the spot". There are other components of Forex trading, such as futures trading, and Forward Outrights, which are somewhat more involved than spot trading.
Forex is the most fluid and largest fiscal market in the world. This market literally works 24 hours a day, seven days a week in the whole world with trillions of dollars being exchanged everyday.
As a trader, you must evaluate Forex trading. Besides, who wouldnt want to trade in the largest financial market in the world? It is a fact that Forex can make the possibility for you to earn high amounts of income.
To learn an amazing breakthrough Forex system that can skyrocket your trading profits, go here:
Forex Trend System
Teresa Parker loves helping others eliminate debt and build wealth. Here favorite forex sites are Forex Miracle, Forex Boomerang, and Forex Trend System
Thursday, January 29, 2009
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