The concept of forex and forex trading

The foreign exchange market also called forex or FX for short, is the largest financial market in the world, with a daily turnover of around $5 trillion. It dwarfs all other markets by size and is one of the most exciting markets for investors.

What forex means for the global economy is enormous. It is inevitable to trade currencies around the world to conduct foreign trade and business, which is why the market is so large. The market also provides many opportunities to benefit investors by exchanging the value of currencies, but you have to understand what forex is before you enter.

As you already know, the forex market is where traders go to trade the world’s currencies.

There are many currencies around, but just a few currencies such as U.S. dollar (USD), British pound (GBP), Euro (EUR), Japanese yen (JPY), Swiss franc (CHF), Australian dollar (AUD), New Zealand dollar (NZD), Canadian dollar (CAD) are considered the major currencies, and those currencies make up the highest trading volume of the world trade, which makes their currencies the most traded in the world.

How forex works

The main participants in the forex market were large banks and other institutional investors, but with internet technology development during the last 20 years, the market has dramatically improved to be accessible for smaller retail investors as well.

Forex is an over-the-counter market, with no centralized location for trading currencies. Instead, currencies are traded in financial centers around the world, like New York, London, Frankfurt, Tokyo, and Sydney.

It means, the market is open 24-hours a day, and it means that you can trade all day. The primary purpose of the forex market is for large multinational companies to exchange one currency for another. But this primary element makes up only around one-fifth of the market. The rest is speculative trading that bet on the volatility of future prices.

Don’t miss Lucky champion event

Lucky Champion Event is an special event that participants predicts the bitcoin price at the closing time of each round, and award to the members who predict nearest and closest price to the actual bitcoin price.